SBTi Corporate Net-Zero Standard V2.0 mandates permanent removals and early procurement

The Science Based Targets initiative (SBTi) released its Corporate Net-Zero Standard V2.0, effective 1 February 2027, which mandates the use of permanent carbon removals for long-lived greenhouse gas emissions at net-zero. The standard introduces an optional 'Ongoing Emissions Responsibility' (OER) programme with three tiers (Engaged, Advanced, Leadership) to encourage early carbon removal procurement. From 2035, large companies and mid-sized companies in high-income countries face mandatory compliance, requiring 1% coverage of Scope 1-3 emissions with permanent removals, linearly increasing to 100% by their net-zero year. The new standard also clarifies the eligibility of credits with corresponding adjustments and integrates commodity certificates into target delivery. This represents a significant shift for the 11,000 companies using SBTi, codifying a 'permanence premium' and establishing a structured timeline for carbon removal procurement.