The Science Based Targets initiative (SBTi) has released the second draft of its Corporate Net-Zero Standard (Version 2) for public consultation. The updated draft reflects feedback from the first consultation and expert working groups, aiming to strengthen scientific integrity while improving clarity, actionability, and usability. The updated standard introduces a number of new guidelines for companies, this article focuses specifically on the role of carbon credits.
The consultation is open until December 12, 2025, with the final standard expected in 2026 and mandatory adoption from January 2028.
The latest draft introduces a major shift in corporate climate strategy with a formal framework for recognizing companies that take responsibility for emissions beyond their value chain, including through carbon credit purchases.
Watch the video below for an overview of the key changes.
What's new in the Corporate Net Zero Standard V2?
This is the first time SBTi has created a structured mechanism for recognizing carbon credits in corporate net-zero strategies through its Ongoing Emissions Responsibility (OER) Framework - this replaces the term Beyond Value Chain Mitigation. It signals a major shift that credits are no longer just voluntary extras they’re part of the pathway to net zero.
What is the OER framework?
The OER framework offers two recognition tiers for companies taking responsibility for ongoing emissions on the pathway to net zero. Ongoing emissions are emissions not yet abated in advance of the net zero year. Under this framework there ae two tiers companies can achieve:
- Recognized Status:
- Address at least 1% of ongoing emissions via ex-post mitigation outcomes (i.e. carbon credits); or
- apply a $20/t carbon price to 1% of ongoing emissions and use funds for eligible climate actions.
- Leadership Status:
- Apply a $80/t carbon price on 100% of emissions and fund ex-post mitigation outcomes (i.e. carbon credits) equal to 40% of ongoing emissions; and
- Remainder of the defined budget on other eligible climate action such as ex-ante mitigation, R&D and innovation.
How do carbon credits fit into the OER framework and the broader standard?
Carbon credits are recognized as eligible mitigation activities under both tiers. Companies can purchase credits from projects that avoid emissions (pre 2035) or remove CO₂ from the atmosphere. This creates:
- Immediate incentives for voluntary credit purchases.
- Long-term obligations for neutralizing residual emissions at net zero.
What changes come into effect after 2035?
From 2035, all companies must take responsibility for an increasing share of ongoing emissions, reaching 100% by 2050. From 2035, ex-post mitigation outcomes (carbon credits) must be removals.
Neutralization at net zero will require:
- 41% of removals stored in long-lived reservoirs (centuries to millennia).
- Remaining removals can be short-lived or mixed (decadal).
Corporate Net Zero Standard V2 Milestones
- March 2025: Draft Net Zero Standard V2.0 released for consultation.
- June 2025: Deadline for consultation feedback.
- 6 November 2025: Second draft Net Zero Standard V2.0 released for consultation.
- 8 December 2025: Deadline for second round of consultation feedback.
- Early 2026: Launch of Net Zero Standard V2.0, available and recommended for new targets upon release.
- 31 December 2027: Final date for new targets under existing V1.2 standard.
- 1 January 2028: All companies required to use V 2.0 for new standards.
Climate Impact Partners will be responding to the consultation and welcome your feedback on the new draft, which we can incorporate into our submission. Click here if you would like to respond.
