SBTi publishes updated Corporate Net-Zero Standard, incorporating carbon credits

The Science Based Targets initiative (SBTi) released version 2.0 of its Corporate Net-Zero Standard on 11 June, introducing an 'Ongoing Emissions Responsibility' (OER) framework that integrates carbon credits into corporate climate strategies. This framework establishes three tiers of recognition for companies purchasing credits, ranging from covering 1% of their footprint to pricing all emissions at $80 per tonne. From 2035, the standard mandates carbon dioxide removal (CDR) for large and medium-sized companies in high-income countries, starting at 1% of ongoing emissions and increasing to 100% by their net-zero year. The Coalition to Grow Carbon Markets, comprising ten countries, welcomed the update, stating it signals carbon credits as a 'valued part of credible climate strategies'. The standard requires credits used under the OER framework to avoid double counting within corporate ledgers, and recommends against co-claiming with government Nationally Determined Contributions.