Carbon Offsets Set to Surge: Why Builders Should Pay Attention

SBTI is changing its stance on carbon offsets. How will that impact the building industry?

The world’s leading authority on corporate climate targets, the Science Based Targets initiative (SBTi), recently announced a major policy shift: companies may soon be allowed to use voluntary carbon offsets to help meet Scope 3 emissions targets.

This move is expected to unleash a wave of new demand for high-quality, verifiable carbon credits in sectors throughout the economy.

The Built Environment’s Massive Carbon Footprint

Simply put, there is no way that we can meet our climate goals, reduce emissions, and remain under the 2 degrees Celsius threshold unless we leverage carbon offsets.

Offsets are particularly important in the built environment, given that buildings are a silent giant in the climate crisis. In the U.S. alone:

• Homes and commercial buildings account for nearly 40% of total energy consumption.
• The residential sector emits roughly 1.2 billion metric tons of CO₂ annually, largely from heating, cooling, and electricity use.
• Embodied carbon, or emissions generated from producing and transporting building materials, can account for up to 50% of a building’s total emissions over its lifetime.

Even as new homes trend toward energy efficiency, the growing number of units being built and the carbon intensity of construction materials are compounding the problem. The U.S. can’t meet its climate goals without radically decarbonizing both the operational and embodied carbon of our homes and buildings.

Why SBTi’s Shift Will Drive Offset Demand

Until now, the SBTi had restricted companies from using carbon credits to meet Scope 3 targets, which cover emissions from supply chains, product use, and other indirect sources. But as pressure from consumers, employees, investors, and supply chain partners mounts on corporations to accelerate climate action—even in the face of what’s happening at the federal level—SBTi is recognizing that offsets may be the only feasible near-term pathway to net zero, and is thus reconsidering its stance.

This change is expected to dramatically increase demand for high-integrity carbon credits and drive investment into projects that deliver real, measurable climate impact.

Time for Action

As companies face increasing scrutiny to clean up their value chains, the building industry is under the microscope. Builders, developers, and manufacturers will be expected to account for the emissions embedded in their projects, materials, and operations.

Offsetting isn’t a silver bullet—but when used alongside energy efficiency, electrification, and renewable energy in building projects, it becomes a powerful tool to achieve true net-zero performance.

That’s why Green Builder Media’s COGNITION Carbon Offset Marketplace was created—to make it easy for building professionals and manufacturers to access the highest-quality, science-vetted offsets available. Designed specifically for the built environment, the platform enables:

• Builders and developers to offset embodied carbon from high-intensity materials like concrete, steel, insulation, and solar panels.
• Manufacturers to reduce their product lifecycle emissions, including raw material extraction, manufacturing, shipping, packaging, waste management, and end-of-life considerations.
• Homeowners and building owners to neutralize emissions from ongoing operations from homes and buildings.

All offsets sold through the COGNITION Carbon Offset Marketplace are vetted through our partner CNaught, verified by third parties, and aligned with rigorous scientific methodologies, ensuring credibility and integrity.

The Future: Carbon-Aware and Market-Driven

According to industry forecasts, the voluntary carbon offset market is projected to grow to over $250 billion by 2050, with demand surging as more companies look to meet aggressive climate targets.

For builders, developers, and manufacturers, this isn’t just about environmental responsibility—it’s about strategic positioning in a rapidly evolving landscape. As the SBTi opens the door for the use of high-quality offsets in Scope 3 emissions reporting, the value of decarbonizing the built environment becomes both a climate imperative and a business opportunity.

Embodied and operational carbon from homes, buildings, and communities represents a massive share of global emissions—but also a massive opportunity for innovation, leadership, and differentiation. Companies that invest now in credible, science-aligned solutions won’t just meet the moment. They’ll help shape the next era of sustainable, resilient, and future-ready development.

To learn more about how the building industry is decarbonizing, join Green Builder Media at our 9^th annual Sustainability Symposium 2025: A Force of Nature, This two-day, free, virtual event will spotlight that sustainability has become the biggest business opportunity in history. The companies betting on ClimateTech are dominating the market. The ones still on the fence? Time to get with it or they won’t survive. Want to stay relevant? Follow the money, because sustainability is the new profit driver.

Register now. Be a force of nature.

Believe me, this is an event you don’t want to miss.

A heartfelt thank you to Trane Technologies and Whirlpool Corporation for their continued support of our annual Sustainability Symposium, as well as their commitment to corporate sustainability.