SBTi Corporate Net-Zero Standard V2.0 : A standard moving from ambition to implementation

The Science Based Targets initiative (SBTi) published Version 2.0 of its Corporate Net-Zero Standard on 11 June 2026. This new version marks an important milestone for companies committed to reducing their emissions and contributing to net zero.

The SBTi presents V2.0 as its most comprehensive framework to date. It no longer focuses solely on defining the appropriate level of climate ambition: it introduces additional tools for implementation, governance, reporting, progress assessment and recognition of complementary climate contributions.

This represents a major change in approach. The question is no longer only: “Does the company have a science-aligned target?” It is also: “Does the company have a credible, managed, documented and revisable plan for achieving that target?”

1. Two company categories: a more pragmatic differentiation

V2.0 now distinguishes between two main company categories.

Category A includes large companies, regardless of geography, as well as certain medium-sized companies located in high-income countries.

Category B mainly covers small companies and certain medium-sized companies located in lower-income countries.

This distinction is significant. Requirements are not identical across company sizes, resources and economic contexts. Category A companies will notably be required to cover Scope 3 more extensively, publish their transition plan and obtain limited assurance over certain baseline data. For Category B companies, some requirements are simplified or optional.

For climate, sustainability and finance teams, this creates an initial qualification step: determine which category the company falls into, then identify the corresponding requirements.

2. More operational targets, better aligned with sector realities

V2.0 strengthens the connection between climate targets and the practical levers of business transformation. Companies will be required to set five-year near-term targets, with a clearer separation between Scopes 1, 2 and 3.

• For Scope 1, several approaches are available: absolute emissions reduction, emissions-intensity reduction, or an asset transition pathway. The latter is particularly relevant for sectors with heavy industrial assets or long investment cycles.

• For Scope 2, the SBTi maintains a strong focus on electricity decarbonisation while giving greater consideration to market-based instruments, power purchase agreements and temporal matching. Hourly matching is recognised, although the SBTi still plans further work on this topic.

• For Scope 3, the approach becomes more targeted. Category A companies will be required to identify material categories and emissions-intensive activities, and then select appropriate approaches: emissions reductions, supplier or customer alignment, or category- and activity-specific targets.

3. An implementation hierarchy: reduce first, use instruments afterwards

One of the major contributions of V2.0 is the introduction of an implementation hierarchy. The SBTi reiterates that companies must first act directly on their operations, products, suppliers and customers. Market-based instruments must not become a shortcut for avoiding real emissions reductions.

The hierarchy broadly distinguishes three levels:

• direct action at activity level,

• action within shared systems or activity pools, and

• sector-level action where structural constraints limit direct intervention.

This approach matters for the carbon market. It confirms that carbon credits and other climate instruments are not substitutes for internal emissions reductions. They may, however, play a complementary, governed and traceable role, separate from the company’s greenhouse-gas inventory.

4. Ongoing Emissions Responsibility : la contribution climatique entre dans le référentiel SBTi

The most strategic development for the carbon market is the introduction of Ongoing Emissions Responsibility, or OER. This mechanism is designed to recognise companies that voluntarily take responsibility for their ongoing emissions, in addition to their emissions-reduction efforts.

The SBTi states that OER complements, rather than replaces, internal emissions reductions. Contributions must be accounted for separately, documented, verifiable and aligned with integrity criteria.

The OER programme establishes three recognition levels, reflecting increasing levels of ambition. The most accessible level allows companies to cover a limited share of ongoing emissions. More advanced levels require broader coverage and, for the most ambitious companies, a contribution equivalent to a substantially larger share of covered emissions.

For companies, OER provides a more structured pathway for financing climate action beyond the value chain: emissions reductions, restoration or protection of natural sinks, carbon removals, and potentially broader forms of climate finance depending on the applicable criteria.

5. 2035: a pivotal date for carbon removals

The year 2035 is one of the most important signals in V2.0. Until 2035, the OER programme remains voluntary. From 2035 onwards, the SBTi indicates its intention to introduce mandatory responsibility for Category A companies through support for eligible carbon removals.

The standard provides that, from 2035, companies will be required to support removals equivalent to at least 1% of their ongoing Scope 1, 2 and 3 emissions. This level would then increase linearly to 100% by the net-zero year, no later than 2050.

Another key point is that the share of long-duration removals will also have to increase. From 2035, companies will be required to support long-duration removals equivalent to at least 10% of covered emissions attributable to long-lived greenhouse gases, increasing to 100% by the net-zero year.

This signal is decisive for carbon-procurement strategies. Companies that wait until 2035 to structure their portfolios may enter a market where demand for high-integrity removals is significantly stronger, while supply remains constrained by project development, certification and verification lead times.

6. Removals, reductions and avoidance: avoid oversimplification

V2.0 does not mean that all reduction or avoidance credits immediately become obsolete. Before 2035, the OER programme may still recognise several forms of eligible climate action, subject to the applicable integrity criteria.

However, the long-term direction is clear: for residual emissions and neutralisation at the net-zero year, carbon removals take a central role. Avoidance and reduction credits will therefore need to be repositioned for climate contribution, transition support, financing action beyond the value chain, or short- and medium-term portfolio strategies.

For buyers, the key question will no longer be only whether a credit is certified. It will also be what purpose it serves: current voluntary contribution, OER before 2035, preparation for post-2035 requirements, neutralisation of residual emissions, or climate communications.

7. What this changes for companies

For companies, V2.0 requires a higher level of maturity. A net-zero target can no longer be separated from a transition plan, governance arrangements, a procurement strategy, a monitoring system and robust documentation.

Climate teams will notably need to determine their SBTi category, review emissions-reduction targets, strengthen their transition plans, document assumptions and dependencies, clearly distinguish greenhouse-gas inventories from climate contributions, anticipate removal needs, and build a portfolio strategy compatible with 2030, 2035 and 2050.

V2.0 also reinforces the importance of engagement with suppliers and customers. Scope 3 cannot be addressed solely through generic emission factors. Companies will increasingly need to demonstrate the actual alignment or transformation of their value chains.

8. What this changes for the carbon market

For the voluntary carbon market, the publication of V2.0 is a signal of further market structuring. It confirms that carbon credits are not disappearing from the SBTi landscape, but that they will need to be used within a more demanding, transparent and use-specific framework.

Removal projects gain strategic importance. This applies to technological solutions, but also to nature-based solutions where they demonstrate robust additionality, sufficient permanence, strong traceability, verified monitoring and credible management of non-permanence risks.

Forestry, agroecology, biochar, soils, sustainable biomass and ecosystem-restoration projects will need to be assessed against this new framework: type of climate outcome, storage duration, MRV quality, certification, issuance timetable, physical risks, regulatory risks and ability to meet the expectations of increasingly sophisticated buyers.

The market is therefore likely to become more segmented. Reduction and avoidance credits will retain certain uses, while verified and durable removals should benefit from a growing demand signal, particularly from large companies subject to post-2035 requirements.

9. Carbonapp point of view

At Carbonapp, we see three structural messages in this publication.

First, internal emissions reductions remain the foundation. No carbon-credit portfolio, however high its quality, can replace a serious decarbonisation pathway.

Second, climate contribution is becoming more professionalised. Companies will need to explain why they finance a particular type of project, for what purpose, using which methodology and timetable, with what level of permanence, and with what evidence of results.

Third, anticipation becomes a strategic advantage. Companies that start building credible carbon-project portfolios today, particularly removal portfolios, will be better positioned when the 2035 requirements materialise.

The right approach is therefore not to wait for the constraint. It is to progressively build a carbon strategy combining emissions reductions, climate contribution, removals, traceability and alignment with emerging standards.

Conclusion

SBTi V2.0 does not resolve every question. Additional guidance is expected, particularly on interpretation, the use of market-based instruments, recognition of third-party frameworks and climate claims. Debate also remains over the appropriate balance between pragmatism, flexibility and scientific integrity.

However, the signal is clear: corporate net zero is entering a more operational phase. Companies will need to reduce, document, explain, finance and anticipate.

For economic actors, 2035 may appear distant. For carbon-project developers and companies seeking to secure high-integrity climate assets, it is already tomorrow.

Questions to ask now :

·       Which SBTi category does the company fall into: A or B?

·       Is the transition plan aligned with the targets, investments and governance arrangements?

·       Are climate contributions clearly separated from the greenhouse-gas inventory?

·       What share of the carbon portfolio consists of verified removals?

·       Will the credits purchased today remain consistent with the requirements expected in 2030, 2035 and 2050?

·       Do the supported projects demonstrate sufficient additionality, permanence, traceability and monitoring?

Sources

SBTi - The new Corporate Net-Zero Standard Version 2.0: https://sciencebasedtargets.org/corporate-net-zero-standard-v2

SBTi - Corporate Net-Zero Standard Version 2.0 (PDF, June 2026): https://files.sciencebasedtargets.org/production/files/Corporate-Net-Zero-Standard-version-2.pdf

SBTi - Corporate Net-Zero Standard V2.0 Executive Summary: https://files.sciencebasedtargets.org/production/files/Corporate-Net-Zero-Standard-V2-Executive-Summary.pdf

SBTi - Corporate Net-Zero Standard V2.0 FAQs: https://files.sciencebasedtargets.org/production/files/Corporate-Net-Zero-Standard-V2-FAQs.pdf

SBTi - The Corporate Net-Zero Standard V2.0 is here: what comes next: https://sciencebasedtargets.org/blog/the-corporate-net-zero-standard-v2-0-is-here-what-comes-next

ESG Today - SBTi Releases Finalized New Corporate Net Zero Standard: https://www.esgtoday.com/sbti-releases-finalized-new-corporate-net-zero-standard/

ESG Dive - SBTi finalizes long-awaited update to its Corporate Net-Zero Standard: https://www.esgdive.com/news/sbti-finalizes-long-awaited-update-to-its-corporate-net-zero-standard/822824/

Climeworks - SBTi’s Corporate Net-Zero Standard V2.0 and what it means for removals: https://climeworks.com/guide/sbtis-corporate-net-zero-standard-v20-and-what-it-means-for-removals

Financial Times - Corporate climate plans arbiter draws critics on new net zero rule book: https://www.ft.com/content/d98a876a-1ea0-40ae-bf3e-b9acf1aca27f

Editorial note: Some elements of V2.0 will still be covered by additional SBTi guidance, notably interpretation, market-based instruments, interoperability and climate claims. The article should therefore be presented as an analysis current as of June 2026.