After more than two years in development, the Science Based Targets initiative (SBTi) has released the Corporate Net-Zero Standard Version 2.0 (CNZS2). The update marks a significant step in how corporations account for carbon credit activities within their net-zero strategies, introducing formal recognition of emissions-reduction and avoidance credits alongside removal credits for the first time.
The standard introduces an Ongoing Emissions Responsibility (OER) framework, through which companies may formally account for their use of carbon credits—including both removal and avoidance types—as supplementary actions. Activities recorded under the OER are disclosed separately and do not contribute to the achievement of science-based targets. Net-zero compliance continues to require the use of carbon removal credits exclusively.
The CNZS2 becomes available for voluntary adoption in February 2027. From 2035, certain companies with validated targets will face mandatory compliance milestones, including a requirement to maintain long-lived carbon removals (CDR) equivalent to at least 10% of relevant carbon emissions. That threshold must increase progressively, reaching 100% by the company’s net-zero target year.
Reception among market participants has been broadly positive. Michael Weber, Senior Director at South Pole, described the update as substantial, noting that post-2035 removal requirements are now binding for large companies—no longer merely indicative. 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 said, with the definition of ‘operational net zero’ still unresolved.
Tommy Ricketts, CEO of carbon ratings agency BeZero, offered a more critical assessment. ‘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 questioned whether SBTi’s governance structure—which operates without formal regulatory oversight—is proportionate to the standard’s global reach, which he estimated at around 25% of global carbon emissions.
Emissions trading lobby group IETA welcomed the recognition of market-based instruments in the standard. It called for SBTi to publish its planned carbon market guidance by late 2026, make the OER framework mandatory from 2030, and extend recognition to all types of carbon credit activities—covering both reductions and removals.