The Science Based Targets initiative (SBTi) has published its Corporate Net-Zero Standard Version 2.0 (CNZS2), the most comprehensive update to its corporate net-zero framework to date. The standard formally recognises the use of carbon credits, including emissions-reduction and avoidance credits, as a complement to direct emissions reductions for the first time.
A team collaborates on corporate strategy using the SBTi Corporate Net-Zero Standard. AI generated image.
At the centre of the update is the Ongoing Emissions Responsibility (OER) framework—an optional mechanism that allows companies to formally report their use of carbon credits, including removal credits, emissions-reduction credits, and avoidance credits, as supplementary actions. These activities are recorded separately and do not count towards a company’s science-based targets. For net-zero compliance, only carbon removal credits remain eligible.
The CNZS2 will be available for voluntary use from February 2027. Companies with validated science-based targets will face mandatory compliance requirements from 2035. From that date, organisations must support long-lived carbon removals (CDR) equivalent to at least 10% of covered carbon emissions, with that share increasing progressively to reach 100% by the net-zero target year.
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Robert Höglund, a member of SBTi’s expert working group on removals, agreed the final version improves on earlier drafts. ‘But there is no drastic change that drives near-term CDR demand’, he cautioned, adding that key issues—including the definition of ‘operational net zero’—remain unresolved.
Tommy Ricketts, CEO of carbon ratings agency BeZero, was more critical. ‘The latest guidance essentially says: do your best for the next nine years, gold star for trying, and don’t worry yourself with ongoing emissions until 2035’, he said. Ricketts also questioned SBTi’s governance model, arguing that an organisation without formal regulatory oversight should not be defining carbon strategy for what he estimated to be around 25% of global carbon emissions.
Emissions trading lobby group IETA welcomed the ‘increased role for market-based instruments’ in the standard. It called on SBTi to publish its planned carbon market guidance by late 2026—a year ahead of the current schedule—and urged that the OER framework become mandatory from 2030. IETA also called for recognition to be extended to all types of carbon credit use cases, covering both reductions and removals.
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As compliance frameworks like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Carbon Border Adjustment Mechanism (CBAM) put quality and credibility at the centre of carbon pricing, the integrity of the credits behind every claim matters more than ever. Green Earth develops large-scale, nature-based carbon projects accredited by leading international standards, with full oversight of every stage of the project lifecycle—from design and implementation to long-term monitoring and credit issuance. Our projects restore ecosystems, enhance biodiversity, and improve community livelihoods, delivering verified environmental impact that stands up to scrutiny. For businesses navigating an evolving regulatory landscape, that integrity is what counts.
