Science Based Targets initiative (SBTi) has dropped the second consultation draft of its Corporate Net-Zero Standard Version 2.0 and wow — this version is a big deal. It completely redefines how companies should think about carbon credits, climate contributions, and what “taking responsibility” really means on the road to net-zero.
So, what’s changed?
In short: Beyond Value Chain Mitigation (BVCM) is out.
In its place, SBTi is asking companies to take responsibility for their ongoing emissions — or explain why they’re not doing so.
This might sound like a subtle shift, but it’s a major mindset change. Climate contributions are no longer a “nice-to-have” or a cherry on top — they’re becoming the new standard.
If you’re reading this, you’re already ahead of the curve. Let’s break down what this all means for you and your climate strategy.
The Big Picture: Climate Contributions Reimagined
The updated framework acknowledges something we all know deep down: even the most ambitious decarbonization plans won’t eliminate every ton of CO₂ overnight.
So, SBTi is introducing a structured way for companies to take responsibility for ongoing emissions, through both mitigation and climate-finance contributions.
Here’s a quick tour of what’s inside Chapter 4 of the draft:
1. Ongoing Emissions Responsibility Disclosure
During validation, all companies must now disclose whether they plan to take responsibility for at least 1% of their ongoing emissions (Scopes 1–3) in their next target period.
If not? You’ll need to explain why.
This transparency requirement isn’t about naming and shaming — it’s about accountability and giving everyone a clearer picture of corporate climate action.
2. Optional Recognition Program (Pre-2035)
Before 2035, companies can earn recognition for taking early action. Think of it as the SBTi’s version of an “extra credit” system — literally.
Recognized Tier (≥1% of emissions)
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Climate Finance Contributions:
Apply a minimum carbon price of USD 20/tCO₂e to at least 1% of ongoing emissions to fund eligible climate actions (like ex-ante credits or adaptation projects).or
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Mitigation Impact Contributions:
Deliver ex-post mitigation outcomes (such as verified carbon credits) equal to at least 1% of ongoing emissions.
Leadership Tier (100% of emissions)
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Climate Finance Contributions:
and
Apply a minimum carbon price of USD 80/tCO₂e to all ongoing emissions. -
Mitigation Impact Contributions:
Deliver ex-post mitigation outcomes equal to at least 40% of those emissions using your climate-finance budget.
Transparency is key — all participants must publish standardized reports. And if your value-chain partners are on the same journey, you can share responsibility for Scope 3 emissions by co-financing or co-claiming the same projects.
3. Post-2035 Responsibility Requirement (CNZS-C28)
Starting in 2035, larger companies (Category A) will be required — not just encouraged — to take responsibility for their ongoing emissions.
Here’s what SBTi expects (subject to refinement in Version 3 of the Standard):
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Begin small in 2035, scaling to 100% responsibility for ongoing emissions by 2050.
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Combine short-lived (decadal) and long-lived (centuries-plus) removals based on IPCC definitions.
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Increase the share of long-lived removals over time — from 17% in 2035 to 41% by 2050.
So yes, the clock’s already ticking ⏰.
4. Neutralization and the State of Net-Zero (CNZS-C29)
At your net-zero target year, the expectation is simple but strict:
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Reduce emissions as much as possible, and
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Neutralize 100% of residuals with carbon removals.
At least 41% must come from long-lived removals, and the rest can be short-lived or additional long-lived ones.
Scope 1 emissions? That’s all on you.
Scope 3? You can share responsibility — but you’ll need solid evidence to back it up.
And of course, all removals must meet SBTi’s integrity standards and avoid double claiming under Paris Agreement’s Article 6. Yes, your carbon removals will need corresponding adjustments.
What This Means for You
Let’s get practical. Here’s how these changes translate for your strategy — and how we at goodcarbon see the road ahead.
1. Integrate climate contributions and carbon pricing
If you’re following SBTi, it’s time to bake climate contributions and internal carbon pricing into your climate strategy.
This isn’t just about compliance — it’s about future-proofing your brand, your budgets, and your credibility. Spoiler alert: it’s easier than you think when you start early.
2. Start preparing for 2035 (yes, now)
Category A companies should secure high-quality short-lived and long-lived removals well before 2035. Even though the details aren’t fully defined yet, the best projects — with strong additionality, permanence, and community benefits — are in high demand.
Getting in early helps you lock in both quality and favorable conditions.
3. Keep an eye on the removals balance
One area to watch closely: the required split between short-lived and long-lived removals, especially for neutralizing emissions at net-zero.
Will there be enough long-lived removals available by 2050? That’s still an open question — and an opportunity for forward-thinking companies to lead by supporting scalable, science-aligned projects today.
4. Take action — not just reduction
This new framework finally removes the hesitation many companies have felt: “Can we use carbon credits?”
Now, the answer is yes — and you’re expected to.
You can choose between ton-for-ton (impact-based) or USD-to-ton (finance-based) approaches, depending on what fits your organization’s structure and goals.
5. Reach out for guidance
If all this feels like a lot to digest (and it is), we’ve got your back.
Reach out to goodcarbon to explore how these changes affect your climate strategy — from carbon pricing and target-setting to securing verified removals and designing credible climate contributions.
Our take at goodcarbon
We genuinely see this as a turning point in the net-zero journey.
Finally, the SBTi is giving structure and legitimacy to what we’ve always believed: taking responsibility for ongoing emissions is not a side note — it’s the main story.
The old BVCM model left too much room for hesitation. Now, companies must set clear climate contribution targets or explain why they don’t. That’s accountability in action.
But we’re also realistic. The market for long-lived removals is still developing, and we need to ensure supply can keep up with future demand. Collaboration, innovation, and transparency will be key to making this system work.
The good news? You don’t have to navigate it alone. We’re all part of this shared journey — learning, adapting, and building solutions that actually move the needle.
So, what’s your take on SBTi’s new direction? Ready to rethink how you take responsibility for your emissions?
Let’s talk.
Until next time,
Your goodcarbon team 🌱
