The Science Based Targets initiative (SBTi) has released a new draft of its updated Corporate Net-Zero Standard (CNZS), offering a clearer blueprint for how companies can handle the emissions they cannot yet eliminate. This second draft—referred to as CNZS V2—is now open for consultation and introduces an updated approach to recognising carbon credits within corporate environmental strategies.
A major feature of the proposal is the Ongoing Emissions Responsibility (OER) framework. This new mechanism outlines how companies can account for their remaining emissions as they transition toward net zero. As the SBTi notes, ‘The OER framework marks a critical evolution in the SBTi's work to align corporate action with climate science.’
The revision process began earlier this year, when the SBTi published the first version of the draft in March. After months of industry feedback, the latest 97-page document reflects significant adjustments and will continue to be open for public input until December 8.
Within the OER framework, companies can opt for one of two recognition tiers: ‘Recognised’ or ‘Leadership.’ The ‘Recognised’ tier applies to organisations that take responsibility for at least 1% of their Scope 1–3 emissions by delivering verified climate outcomes or by applying a minimum internal carbon price of $20/tCO₂e and directing the proceeds toward eligible environmental efforts. The higher ‘Leadership’ tier requires a carbon price of at least $80/tCO₂e applied across all ongoing emissions, with funding channelled into mitigation activities equal to 40% of those emissions. Both pathways permit the use of carbon credits, including avoidance and removal-based units.
The SBTi highlights that this framework is meant to expand in ambition 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 further stressed the role of carbon removals, explaining that the new draft ‘recognises that scaling removals capacity can help companies to address their residual emissions, and use this tool effectively’ while maintaining that removals ‘should never be a substitute’ for cutting emissions internally.
Companies can continue setting targets under the current CNZS until the end of 2027. The updated version is expected to be finalised in 2026, with mandatory adoption scheduled for January 2028. The draft also clarifies that earlier proposals for interim removal targets have now been merged into the broader Beyond Value Chain Mitigation framework to avoid overlap and improve clarity for users.