The Science Based Targets initiative (SBTi) has unveiled the second draft of its revised Corporate Net-Zero Standard (CNZS), introducing a new framework that could reshape how companies account for ongoing emissions. The draft, known as CNZS V2, is now open for public consultation and lays out the organisation’s latest thinking on the responsible use of carbon credits and related mitigation activities.
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At the centre of the update is the Ongoing Emissions Responsibility (OER) framework, a new structure designed to recognise how companies manage the emissions that persist on the path to net zero. According to the SBTi, ‘The OER framework marks a critical evolution in the SBTi's work to align corporate action with climate science.’
The SBTi first announced plans to refresh its 2021 standard earlier this year, publishing an initial draft in March. Following several months of stakeholder feedback, the updated text, spread across 97 pages, reflects continued refinement. The latest consultation period will remain open until December 8.
Under the OER model, companies can pursue one of two designations: ‘Recognised’ or ‘Leadership.’ The first applies to businesses that take responsibility for at least 1% of their Scope 1–3 emissions by delivering verified mitigation outcomes or by applying a minimum internal carbon price of $20/tCO₂e and allocating the resulting budget to eligible environmental actions. The ‘Leadership’ tier is more ambitious, requiring a price of at least $80/tCO₂e on all ongoing emissions and financing mitigation equivalent to 40% of those emissions. Both tiers allow the use of carbon credits, whether from avoidance projects or carbon removal initiatives.
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The SBTi emphasises that the framework is intended to evolve over time: ‘(The OER framework) is designed to scale from voluntary recognition in the near term to mandatory responsibility over time — ensuring that all companies progressively align with global net-zero pathways.’
An SBTi spokesperson declared that the draft acknowledges the importance of removals, saying it ‘recognises that scaling removals capacity can help companies to address their residual emissions, and use this tool effectively’ while underscoring that such measures ‘should never be a substitute’ for reducing emissions directly.
Companies may continue using the existing CNZS until the end of 2027. Once the updated standard is finalised—expected in 2026—it will become mandatory from January 2028. The draft also notes that earlier considerations for interim carbon removal targets have been consolidated under broader Beyond Value Chain Mitigation to avoid overlapping frameworks and user confusion.
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As the SBTi strengthens its guidance on how companies account for ongoing emissions, one theme stands out: high-quality mitigation beyond value chains is becoming an essential part of credible net-zero strategies. And while new frameworks are emerging, the most scalable and reliable environmental solutions still come from nature. At Green Earth, we develop large-scale, nature-based carbon projects that restore ecosystems, enhance biodiversity, and generate verified carbon units that fit seamlessly into responsible mitigation pathways like those outlined in the SBTi’s latest draft. By supporting these projects, companies can take meaningful responsibility for their residual emissions while contributing to a thriving, nature-positive future—an opportunity you can explore further with Green Earth.
