Value chain emissions.

The UN-backed Science Based Targets initiative, a standard setter for corporate GHG reductions targets, said companies can use carbon credits to compensate for Scope 3, Bloomberg reports.

Reaction to the news was mixed — it's a vote of confidence for carbon credits market and gives companies flexibility, but others see it as a short cut for what's often the largest bucket of emissions.

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Cat Clifford

Senior Science and Economics Correspondent