The Natural Climate Solutions Alliance and the Forest Investor Club have submitted a joint letter to the Science-Based Targets initiative (SBTi) with detailed recommendations on the use of voluntary carbon credits in achieving Scope 3 targets. Representing a diverse group of companies, fund managers, private investors, and conservation NGOs, our collective feedback reflects a shared commitment to advancing practical, high-integrity solutions that support rapid climate progress.

Our letter acknowledges SBTi’s openness to include voluntary carbon credits in Scope 3 pathways as outlined in the recent Scope 3 Discussion Paper, while emphasizing the critical role of Natural Climate Solutions (NCS) and robust carbon credit methodologies. With a set of ambitious, solutions-oriented recommendations, we aim to enhance the credibility and impact of carbon credits in corporate decarbonization efforts and accelerate progress toward net-zero goals.

Highlights of the Recommendations Include:

• Recognizing the importance of addressing annual remaining emissions with high-integrity carbon credits, while prioritizing in-value-chain reductions.
• Allowing flexibility in credit use to enable jurisdictional or commodity-based approaches even when full traceability to suppliers is challenging.
• Introducing interim neutralization targets to drive earlier investments in carbon removals and reduce future credit reliance.
• Enabling versatility in credit matching to maximize the climate, biodiversity, and community co-benefits of NCS projects.
• Implementing accountability measures for companies that miss Scope 3 targets, with penalties tied to high-integrity carbon credit retirements.

Our recommendations reflect an unwavering commitment to high standards, measurable progress, and the pragmatic integration of voluntary carbon credits alongside direct emission reductions. We believe this approach will help companies meet their Scope 3 goals responsibly while supporting global climate, biodiversity, and social objectives.

We urge SBTi to consider these recommendations as they refine Scope 3 guidelines, and we stand ready to collaborate in creating a pathway that ensures robust, transparent, and impactful corporate climate action.

The NCS Alliance brings together over 80 organizations, including 25 businesses, committed to support the demand for high-integrity NCS credits. The Forest Investor Club catalyses private sector finance and investment into nature-based solutions.