Climate Impact Partners Shares Views on SBTi Corporate Net Zero Standard 2.0
The SBTi has published its updated Corporate Net-Zero Standard V2.0 - a significant milestone that provides clearer direction on how companies should integrate carbon markets into their net zero strategies.
The latest update introduces:
- More accessible pathways to engage in carbon markets, including three recognition tiers
- Inclusion of a full range of carbon market solutions - from avoidance and reduction through to durable removals
- A clearer framework for scaling carbon removals as companies progress towards net zero
- Mandatory use of carbon removal credits from 2035 to take responsibility for ongoing emissions
Chris Duck, Claims and External Affairs Director, shares his initial views:
“The release of SBTi’s updated Corporate Net-Zero Standard 2.0 is an important moment for the market - one that has been shaped by extensive consultation. But the bigger signal is that corporates aren’t waiting. They have clear strategies, they’re confident in their goals, and they’re already getting on with delivering impact.
Within that context, there are clear positive signals for the carbon market. We welcome the stronger recognition of ongoing emissions responsibility, action beyond the value chain, and the role of a full range of carbon market solutions - from avoidance and reduction through to durable removals. This reflects what leading companies are already doing today: taking responsibility for emissions and delivering real measurable impact across climate, communities, and biodiversity.
It also sends an important demand signal, with initial conservative modelling suggesting that demand from SBTi-aligned companies could nearly triple by 2030.
It is great to see the introduction of additional tiers of action for corporates – helping meet them where they are - a direct response to feedback from corporates through the consultation process.
But it’s not all there yet. Some proposals risk adding complexity and limiting how companies can invest in carbon removals at scale, such as requiring removal outcomes to take place in the same year as the relevant emissions. Restrictions like this could constrain finance flowing to the projects that need it most, particularly when scaling supply is critical.
Standards now need to keep pace with the momentum we are seeing in the market - enabling companies to continue to act with confidence and deliver impact at scale.”
