Carbon credits in Science Bsed Target's updated standard

Science Based Target has just launched a draft of its updated Corporate Net-Zero Standard V2. It introduces a formal framework to recognize companies that take responsibility for emissions beyond their value chain, which includes the purchase of carbon credits. SBTi now requires companies to explain why they do not purchase carbon credits - if they do not already do so.

Ongoing Emissions Responsibility replaces Beyond Value Chain Mitigation in updated standard

SBTi has created a structured mechanism to recognize carbon credits in companies' net-zero strategies through its Ongoing Emissions Responsibility (OER) framework. This replaces the term Beyond Value Chain Mitigation (BVCM). It signals a major change, namely that credits are no longer just voluntary add-ons - they are part of the path to net-zero.

We often hear the constant debate: should we focus on nature-based solutions like afforestation or on technological solutions like Direct Air Capture? According to the Science Based Targets initiative (SBTi), the answer is simple - we need both.

ZeroMission's Sales Manager Maria King welcomes the new standard and thinks it is good that SBTi now includes nature-based climate solutions to a greater extent. Something that was previously recognized by over 100 scientists in an open letter to Science based Targets. 

The OER framework addresses this by integrating nature protection, management and restoration with the development of long-lived carbon removal technologies within a single system.

Along the pathway to net-zero, companies can be recognized for actions they take beyond their validated targets and emission reductions. These actions should take place outside their own value chain and can include Reductions (e.g. methane capture), Avoidance (e.g. forest conservation projects/REDD) or Removals (e.g. tree planting).

Science based targets, Leadership Status

• Companies applying a carbon price of at least $80/tonne to 100% of scope 1-3 emissions and buying Ex-post credits equivalent to 40% of ongoing emissions

And

• Uses the rest of the defined budget for other eligible climate actions such as financing Ex Ante credits, research and development (R&D) and innovation.

Science based targets, Recognized Status

• Companies taking responsibility for at least 1% of ongoing scope 1-3 emissions via the purchase of ex-post credits

Or

• Applies an internal carbon price of at least 1% of scope 1-3 emissions that can finance climate action outside its own value chain including ex-ante credits. The recommendation is to set a price of at least USD 20/tonne CO2e.

What does it mean for a company to be recognized as Leadership or Recognized? It shows that these companies are taking responsibility for their emissions and are climate leaders, which can attract investors, partners and customers.

Category A updated standard SBTi from year 2035

From 2035, the liability requirements become mandatory for Category A companies (large and medium-sized companies in high-income countries), and this is where the framework begins to place greater emphasis on carbon removal. Companies must allocate an increasing share of their liability to long-lived removals - those that store carbon for centuries or longer. This follows a sustainability trajectory anchored in the IPCC's 1.5°C-compatible scenarios.

Although nature-based removals are classified as short-lived because the carbon dioxide can be re-released within decades, they remain critically necessary to lower the concentration of greenhouse gases in the atmosphere in the short term. Therefore, SBTi will continue to recognize these types of credits. In net-zero years, up to 59% of neutralization can still come from short-lived removals - such as tree planting.

What is required for the net zero target, SBTi?

At their net zero target, all companies - regardless of category - must neutralize 100% of remaining emissions in scope 1, 2 and 3:

• 41% of the remaining emissions must consist of long-lived removals
• 59% can be addressed by short-term removals

Technical solutions or nature-based? The answer is clear - we need both. At the same time, SBTi highlights the importance of businesses contributing to the protection and restoration of nature and our ecosystems.

Nature-based climate solutions Science Based Targets updated standard

It is important to emphasize that carbon capture that a company finances outside the value chain through the purchase of carbon credits continues to have no impact on Scope 3 emissions . Carbon credit purchases are made in parallel with company reduction targets, and are accounted for separately, in accordance with SBTi.

SBTi emphasizes the importance of companies contributing to the protection and restoration of nature and our ecosystems. The fact that they now allow nature-based solutions to be an obvious part of OER even in neutralization means that companies that currently buy carbon credits in projects for nature-based climate solutions, certified for example by Plan Vivo, will continue to be able to include these in their strategy for Science Based Targets.

ZeroMission helps companies build a portfolio of both short- and long-term carbon credits.

In early 2026, SBTi plans to launch the updated standard. It is currently out for consultation and some adjustments to the draft may be made.