Despite the sector’s great contribution to global emissions, both the GHG Protocol and the SBTi had not yet defined how to quantify these emissions and removals, nor how would be the definition of goals for institutions that aim to contribute to global warming does not exceed 1.5°C and which aim to reach Net-zero. 

SBTi FLAG initiative 

Knowing the importance of the FLAG sector in meeting the goals of the Paris Agreement, the SBTi (Science Based Targets Initiative) published, in September 2022, a Guide with guidelines for setting a science-based target for emissions and removals of greenhouse gases (GEE) for the FLAG sector. 

The main novelties of the document are listed below: 

1. Target horizon: defining short-term FLAG targets: 5-10 year horizon according to limiting warming to 1.5°C;
2. Target definition: consider short-term FLAG reductions and removals: the Guide requires institutions to define both emissions reduction and removal targets (this is the first time that SBTi includes emissions removals in its targets and the quantification of removals was also contemplated for the first time in the recently launched GHG Protocol Land Sector and Removals Guidance). It is important to highlight these removals are different from “offsets” and require these companies to evolve in activities that function as carbon sinks (or reservoirs), in addition to promoting emission reductions. Removal activities included in the FLAG model only include actions taken at companies and in the supply chain that are within the company’s value chains. According to the guide, FLAG carbon removals cannot be used to achieve non-FLAG targets (for example: forest management removals cannot be used to achieve fossil fuel reduction targets). And biogenic removals should only be accounted for to meet FLAG targets; 
3. Deforestation goal: zero deforestation goals related to the main commodities must be defined by 2025 following the guideline of the Accountability Framework (AFi) initiative. 

Who should have a FLAG target, when and what are the different approaches? 

• Which companies should submit a FLAG target:

Companies belonging to the sectors of Forestry and Paper Production – Silviculture, Wood, Pulp and Paper, Rubber, Food Production – Agricultural and Food Production – Animal Source, Food and Beverage Processing, Food Retail and Basic Foods, Tobacco) or to any other sector whose total FLAG emissions in scopes 1, 2 and 3 together represent at least 20% of the total emission. It is important to highlight that FLAG emissions and removals are those related to agriculture (up to the farm gate, in other words, emissions such as enteric and fertilizer application are classified as FLAG), changes in land use and soil management, forestry (excluding processing). 

• The timing to set a FLAG target is as follows:

Until April 2023 the definition of a FLAG target is voluntary and after that: 

1. Companies that set their SBTi target before January 2020 must set a FLAG target by December 31st, 2023;
2. Companies that set their SBTi target after January 2020 and before April 30th, 2023 must add a FLAG target by December 31st, 2024;
3. Companies setting their first SBTi target after April 30th, 2023 must set a FLAG target at the time of their submission. 

• There will be two approaches to setting an emissions target:

The Guide defines two approaches to target setting. The sectoral target (absolute target) is more recommended for companies with different land use activities and for companies located on the demand side of the production chain. In other words, companies located in the middle and at the end of the production chain, which do not produce, but buy commodities that can be processed. Commodity targeting (intensity targeting) is best applied to companies located on the supply side of the production chain. It means that companies located at the beginning of the production chain and companies whose associated emissions are related to at least one of these commodities: beef, poultry, dairy products, corn, palm oil, pork, rice, soybeans, wheat, leather and wood; and representing at least 10% of total FLAG emissions. The Guide also mentions that SBT is working on a better definition of actors on the demand side and on the supply side, which will be presented in version 2.0 of the document. 

Source: Adapted from Flag SBTi Guide

WayCarbon assists companies in quantifying emissions and removals following the guidelines in the new GHG Protocol Land Sector and Removals Guidance, assessing the potential for decarbonization and reduction and removal of FLAG emissions from a company in scopes 1, 2 and 3, contributing to the best approach for defining and achieving a FLAG target. 

Glossary with the main terminologies used in the Forest, Agriculture and Land Use sector 

Emission: release of a gas responsible for the greenhouse effect into the atmosphere 

Enteric fermentation: degradation of fiber by the ruminal microbiota produces short-chain volatile fatty acids that are used as an energy source. In this fermentation process, gases such as CO2 and CH4 are produced, which are eliminated into the environment through eructation. The quality of the fiber ingested by the ruminant is what will determine the amount of energy lost in the form of methane gas during the fermentation process. 

Emission source: process, activity or mechanism that releases greenhouse gases into the atmosphere 

Removal: transferring a greenhouse gas from the atmosphere to storage in a non-atmospheric reservoir 

Reservoir: physical reservoir or medium where a greenhouse gas or its constituent elements are stored 

BIBLIOGRAPHIC REFERENCES

¹DO CLIMA, Observatório. Análise das Emissões Brasileiras de Gases de Efeito Estufa e suas Implicações para as Metas de Clima do Brasil 1970-2020. Sistema de Estimativas de Emissões e Remoções de Gases de Efeito Estufa (SEEG), 2021. Available at:: https://seeg-br.s3.amazonaws.com/Documentos%20Analiticos/SEEG_9/OC_03_relatorio_2021_FINAL.pdf. Accessed on November 1, 2022

Science Based Target Initiative.”SBTi’s FLAG Guidance 2022″. Available at: https://sciencebasedtargets.org/sectors/forest-land-and-agriculture. Accessed on November 1, 2022

“Hoisting the FLAG: the SBTi’s target-setting approach to land-intensive sectors goes live’. South Pole Blog. Accessed on November 1, 2022. Available at: https://www.southpole.com/blog/hoisting-the-flag-the-sbtis-target-setting-approach-to-land-intensive-sectors-goes-live

VIRI, Natalia. “Um padrão para botar ordem nos compromissos de net zero”. Capital Reset. Available at: https://www.capitalreset.com/um-padrao-para-botar-ordem-nos-compromissos-de-net-zero/. Accessed on November 1, 2022.