The Science Based Targets initiative (SBTi) has broadened the revision of its Corporate Net-Zero Standard, aiming to refine its guidelines on neutralisation and make minor adjustments to its approach. The Corporate Net-Zero Standard, first introduced in 2021, offers companies a framework to set science-based net-zero targets. Central to this standard is the requirement for companies to neutralise any residual emissions through the permanent removal and storage of CO2 after achieving their long-term emission reduction goals.
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In a recent update, the SBTi released revised project terms of reference, signalling its intention to clarify the near-term actions companies can take to address residual emissions. This revision is an early step in refining the Corporate Net-Zero Standard, with the organisation focusing on how carbon dioxide removal and storage will play a role as companies approach their net-zero target dates.
Read more: Groundbreaking: SBTi includes Scope 3 emissions in environmental certificates
A critical aspect of this revision is the potential shift in the timeline for carbon removals. Previously, the SBTi only endorsed carbon removals after companies achieved their reduction targets, positioning them as a final step in the net-zero strategy. However, the current revision considers allowing carbon removals earlier in the CO2 reduction process, which could significantly impact companies' strategies. This change means that all companies committed to the SBTi will soon be looking to implement carbon removals alongside their internal CO2 reduction. This change signals an increased demand for carbon removal projects, including afforestation efforts.
Read more: The Science Based Targets initiative and carbon offsetting: striking the right balance
To gather input for these revisions, the SBTi is organising two workshops—one during Climate Week NYC and another in London in October. Insights from these events will contribute to a research paper supporting the revision process. A draft of the revised Net-Zero Standard will be open for public consultation in the coming months, ensuring that the standard remains unchanged until the completion of this review.
For DGB Group, a leader in providing premium carbon units, the revision of SBTi's standards marks a significant opportunity. As more companies look for dependable ways to compensate for emissions across their entire value chains, DGB's carbon units are perfectly positioned to meet these evolving requirements. Our verified carbon units not only comply with stringent standards but also empower our clients to achieve their sustainability targets.
This alignment with SBTi's enhanced guidelines strategically places DGB and its partners to benefit from the expected growth in the carbon market, driven by increased demand for robust carbon compensation solutions that contribute to genuine environmental progress. The SBTi’s move could reshape corporate environmental strategies, potentially elevating the market value of carbon units and reinforcing the critical role of high-quality offsets, like those offered by DGB, in advancing global sustainability initiatives.
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