SBTi CEO Luiz Amaral Resigns Amid Controversy over Carbon Credits: A Closer Look at the Future of the Science Based Targets Initiative

In a surprising development, Luiz Amaral, CEO of Science Based Targets initiative (SBTi), has announced his resignation after two years in the role. The resignation will take effect on July 31st. Jenny Ehr, SBTi’s chief legal officer, will serve as interim CEO while a search for a permanent replacement is conducted.

Since its establishment in 2014, SBTi has played a crucial role in helping companies set voluntary targets that align with the Paris Agreement’s greenhouse gas emissions reductions. By the end of 2023, 4,205 companies had targets validated by SBTi, including 449 striving to meet the corporate net-zero standard. While some companies have chosen not to adhere to SBTi’s framework, others have had their targets validated.

The future of the organization came under scrutiny in April when SBTi announced that it would consider allowing companies to utilize carbon credits to offset emissions. This sparked controversy and led to calls for Amaral’s resignation from certain SBTi staff and advisors. Despite this controversy, Amaral had previously played a key role in transitioning SBTi into a standalone organization and taking on the role of CEO in February 2022.

Francesco Starace, chairperson of SBTi, reaffirmed the organization’s mission and promised a seamless transition following Amaral’s resignation. He expressed confidence in the dedication of SBTi’s colleagues, technical council and companies worldwide committed to fulfilling the goals of the Paris Agreement. Together they will continue to focus on supporting companies in their efforts to meet their environmental commitments.