SBTi includes requirements for CCU, bio-based and chemical recycling in its latest draft consultation

In the UK, for the first time, SBTi’s latest draft consultation includes requirements for companies to set alternative feedstock targets for CCU, bio-based and chemical recycling – in line with RCI’s renewable carbon concept

The Science Based Targets Initiative provides companies with a science-based methodology for setting CO2 targets that are consistent with limiting global warming to 1.5°C. SBTi is a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). To date, SBTi has over 8,000 companies taking action – 50% from Europe – and over 5,500 companies with validated targets. This represents over a third of global market capitalization. In addition to its generic cross-sector methodologies, SBTi is also developing sector-specific guidance for companies in high emitting industries.

In May 2024, SBTi published an open consultation on the draft Chemicals Sector Guidance, seeking feedback from external stakeholders and industry experts. As part of this guidance, they developed, for the first time, sector-specific non-emissions metrics to incentivise a shift from fossil-based feedstocks to the three alternative carbon feedstocks: bio-based, chemically recycled carbon and CCU-based including direct air capture (DAC). This approach does not include mechanical recycling of plastics, as this is considered a demand reduction lever outside the scope of the chemicals sector. Mechanically recycled plastics cannot be used as a feedstock for the chemical industry, but only for the plastics sector.

The alternative feedstock targets apply to companies that purchase and use carbon-based materials for the manufacture of (chemical) products. The target methodology will set a minimum expectation for the total percentage of carbon feedstocks from an alternative source in the target year. This target will not replace Scope 3 emissions targets to ensure that emissions do not increase due to feedstock switching. Companies will be encouraged to set more ambitious targets to reflect their transition strategies.