The Science-Based Targets Initiative (SBTi) will release guidance on the use of carbon credits and market mechanisms by the end of 2026's follow-on year, as part of a newly published strategy covering the 2026–2030 period.
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The recently released strategy document identifies the carbon credit guidance as one of SBTi's key actions and milestones for the first years of the new cycle. A separate milestone in the same document confirms the launch of the revised Corporate Net-Zero Standard (CNZS) by the end of 2026.
The CNZS has been in development for several years. A draft released last year explicitly acknowledged carbon credits as a vital mechanism for companies meeting their targets, placing them within a hierarchy where internal emissions reductions retain primacy. Today's strategy reaffirms that the CNZS work has involved consultations on the 'use of high-integrity carbon credits as a complement, not a substitute, to companies reducing their own carbon footprint'. The final standard will include details of this approach.
Finer detail on which carbon credits and market mechanisms qualify may, by SBTi's own indication, come only with the dedicated guidance expected by end of 2027.
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SBTi has been clear on one point: it does not intend to build its own integrity framework for carbon credits. 'Other organisations do very good work in this space, and we will recognise their frameworks as being consistent with our approach and eligible for meeting targets,' the strategy states. One framework explicitly referenced is the Integrity Council for the Voluntary Carbon Market (ICVCM), whose principles SBTi says it will rely on for assessing which carbon credits and related mechanisms carry sufficient integrity for use under its standards. The guidance, once published, will set out SBTi's 'approach to recognition of these schemes'.
The announcement signals a significant step forward for the verified carbon market. Businesses working toward science-based targets have long awaited clarity on the role carbon credits can play under the standard. The forthcoming CNZS and accompanying guidance are expected to define that role in concrete terms for the first time.
Read more: EU draft rules recognise Paris Agreement credits under CBAM
As frameworks like SBTi formalise the role of high-integrity carbon credits in corporate net-zero targets, the quality of the credits behind every claim carries real weight. 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. Explore our verified carbon credits.
