SBTi Publishes New Corporate Net-Zero Standard Amping Carbon Credit Use

The Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard (CNZS) Version 2.0 marks an important step forward for corporate climate action. We welcome the introduction of a pathway for the responsible use of carbon credits, recognizing their role in accelerating climate impact while maintaining a strong focus on direct emissions reductions. While this represents meaningful progress, we believe there remains an opportunity for greater ambition and flexibility within the framework.

As the most widely adopted standard for corporate climate action, the CNZS provides companies with a clear and credible roadmap to achieve net-zero goals. By formally incorporating carbon credits into the framework, organizations can now take more immediate and cost-effective action to address climate change while continuing to prioritize emissions reductions within their own operations and value chains.

Importantly, the use of carbon credits is not intended to replace direct emissions reductions. Rather, it serves as a complementary mechanism to address a company’s Ongoing Emissions Responsibility (OER). Under the new framework, companies will be recognized according to the extent to which they address their OER:

• Engaged – Covering at least 1% of ongoing emissions, which may be achieved through the use of carbon credits.
• Advanced – Covering 100% of Scope 1 and Scope 2 emissions and at least 10% of total ongoing emissions, which may also be achieved through carbon credits.
• Leadership – Covering 100% of total ongoing emissions through a contribution budget of $80 per tonne, which can be directed toward carbon credit purchases.

In addition, beginning in 2035, Category A companies will be required to support eligible carbon removals, including through high-quality carbon credit projects.

While we are encouraged by the inclusion of carbon credits in the revised Net-Zero Standard, we believe additional measures are needed to unlock their full potential and accelerate climate action. In particular, we encourage SBTi to:

• Enable the use of high-quality carbon credits to contribute toward both interim and long-term climate targets.
• Advance the timeline for mandatory OER action from 2035 to 2030.
• Recognize the critical role of emissions reductions and avoidance activities alongside carbon removals. Scaling removals is essential, but continued emissions reductions remain fundamental to achieving global climate goals.

The urgency of the climate challenge demands greater ambition. By strengthening the role of high-integrity carbon markets while maintaining a robust focus on emissions reductions, we can accelerate progress toward a net-zero future.