Navigating the SBTi Corporate Net-Zero Standard V2.0 for Durable Removals

The era of vague corporate climate promises is over. 

For years, "Beyond Value Chain Mitigation" was a nebulous concept. No longer. The SBTi's newly released draft of the Corporate Net-Zero Standard Version 2.0 transforms BVCM from a suggestion into a structured, critical component of any credible net-zero strategy. This draft, open for consultation until December 8, makes it clear: true climate leadership now requires investing in long-term, verifiable carbon removal. The message to the market is unambiguous—the age of low-quality offsets is ending, and the era of high-integrity climate finance has begun. 

On November 6, 2025, the Science Based Targets initiative (SBTi)—the de facto gold standard for corporate decarbonization—released the second draft of its landmark Corporate Net-Zero Standard Version 2.0 (CNZS V2.0). This isn't just a minor update; it's a profound evolution that replaces vague recommendations with a structured, rigorous framework for what it means to be a true climate leader. 

This new draft, currently open for public consultation until December 8, 2025, is a must-read for any organization with a science-based target. It sends an unmistakable signal to the Voluntary Carbon Market (VCM), drawing a bright line between low-quality offsets and the high-integrity, durable carbon removals that will define the next era of climate action. For investors and developers in nature-based solutions, particularly in high-impact areas like blue carbon, this is a watershed moment. The future of corporate climate investment is here, and it demands verifiable, long-term impact. 

I. The SBTi's Evolving Framework: From BVCM to Formalized Responsibility  

The most significant change in the CNZS V2.0 draft is the fundamental reframing of a company's role in the global climate fight. The previous, loosely defined concept of BVCM is being retired. In its place, the SBTi introduces a more comprehensive and demanding framework: Taking Responsibility for Ongoing Emissions. 

This isn't merely a semantic shift. It codifies the expectation that companies must go beyond their own operational and value chain abatement (their primary responsibility) and contribute to societal net-zero. The framework is built on two core components that will shape corporate climate strategy for the next decade and beyond: 

1. A New, Optional Recognition Program: For the first time, the SBTi will formally recognize and celebrate companies that take early, voluntary action to address their unabated emissions today. This provides a clear incentive for proactive climate leadership. 

2. Progressive Mandatory Requirements: The draft lays out a clear timeline for when these contributions will become mandatory, culminating in the full neutralization of all residual emissions at the company's net-zero target date. 

This structured approach moves corporate contributions from a "nice-to-have" category to an integral part of a credible net-zero claim. It provides clearer pathways for companies to demonstrate leadership, de-risk their long-term climate strategies, and channel finance toward the most effective climate solutions. 

II. Voluntary Leadership: The New Recognition Program for Ongoing Emissions 

While deep decarbonization and emissions reduction remain the non-negotiable core of any science-based target, the SBTi acknowledges a crucial reality: even the most ambitious companies will continue to emit greenhouse gases during their transition. The CNZS V2.0 draft introduces a voluntary program to incentivize companies to take responsibility for this impact now. 

This program establishes two tiers of ambition: "Recognized" and "Leadership." 

Achieving "Recognized" Status 

To earn the "Recognized" designation, a company must take responsibility for at least 1% of its ongoing Scope 1, 2, and 3 emissions. According to the draft, this can be achieved in two ways: 

• Applying a Carbon Price: A company can apply an internal carbon price to fund eligible climate actions. 

• Delivering Mitigation Outcomes: Alternatively, it can purchase and retire high-integrity carbon credits equivalent to at least 1% of its ongoing emissions. These are defined as ex-post mitigation outcomes—real, verified emissions reductions or removals that have already occurred. 

  
  

Demonstrating "Leadership" Status 

The "Leadership" tier represents the pinnacle of corporate climate stewardship. It requires a company to take responsibility for 100% of its ongoing emissions. This involves a more complex, multi-faceted commitment: 

• Apply a robust carbon price of at least USD $80/tCO₂e to all ongoing emissions. 

• Deliver ex-post mitigation outcomes (verified credits) equivalent to at least 40% of those emissions. 

• The remaining budget must be directed toward other crucial Climate Finance Contributions, such as funding for R&D in climate tech, adaptation projects, or Loss and Damage finance. 

This structure brilliantly separates quantified, tonne-for-tonne mitigation from broader financial support, bringing much-needed clarity to corporate claims. It creates a powerful incentive for companies to invest in projects that deliver tangible, verifiable results—a category where high-quality nature-based solutions excel. 

What Are "Ongoing Emissions"? 

The SBTi draft makes a critical distinction: 

• Ongoing Emissions: These are the greenhouse gases a company continues to release into the atmosphere during its transition to net-zero. The new recognition program encourages companies to address these emissions voluntarily. 

• Residual Emissions: These are the small amount of hard-to-abate emissions that will remain after a company has achieved its deep decarbonization targets (typically a >90% reduction). These emissions must be neutralized with carbon removals to make a credible net-zero claim. 

III. The Mandate for Removals: Future Requirements and Neutralization at Net-Zero

While the recognition program is voluntary for now, it serves as the training ground for what will become mandatory. The CNZS V2.0 draft sketches a clear path toward required corporate investment in carbon dioxide removal (CDR), fundamentally reshaping the demand landscape for high-integrity credits. 

Post-2035: The Responsibility Becomes Mandatory 

Starting in 2035, the draft proposes that large companies (defined as Category A) must progressively take responsibility for their ongoing emissions, reaching 100% by their net-zero target year (no later than 2050). Crucially, this mandate specifies the types of solutions that qualify, requiring support for activities that deliver both: 

• Short-lived removals: Carbon stored in reservoirs with decadal stability (e.g., soil carbon). 

• Long-lived removals: Carbon stored for centuries to millennia (e.g., geologic storage, or the sediment of blue carbon ecosystems). 

The standard expects the proportion of investment in long-lived removals to increase over time, signaling a market shift toward durability and permanence. 

The Final Mile: Neutralization at Net-Zero 

The ultimate requirement remains unchanged but is reinforced with greater specificity. By its net-zero target year, a company must neutralize 100% of its residual emissions using verified carbon dioxide removals. The draft proposes a specific breakdown for this neutralization portfolio: 

• A minimum of 41% must come from long-lived reservoirs. 

• The remaining 59% can come from short-lived reservoirs or additional long-lived removals. 

Underpinning this entire framework are strict integrity rules. The SBTi reiterates that these contributions cannot be counted as reductions in a company's own value chain GHG reduction ("no double counting"). All contributions must be verified by independent third parties and disclosed publicly. This mandate for verified, durable removals will create a powerful and sustained demand signal, transforming the VCM from a speculative marketplace into a mature, quality-driven ecosystem. 

Impact on the VCM: Why High-Integrity Removals and Blue Carbon Win 

The SBTi's new draft is the catalyst the Voluntary Carbon Market has been waiting for. For years, the market has been plagued by ambiguity when it comes to contribution obligation and concerns over CDR quality. This new standard acts as a powerful filter, separating the wheat from the chaff and directing capital toward projects that can withstand scientific scrutiny. 

Here’s how the CNZS V2.0 will reshape the market: 

1. Sustained Demand for High-Integrity Removals: The formalization of interim removal targets and the mandatory neutralization requirements create a predictable, long-term demand curve for high-quality CDRs. This is a game-changer for project developers, offering the financial certainty needed to scale operations. 

2. Crystal Clarity on Carbon Credit Use: The SBTi has ended the debate. Carbon credits are not a substitute for a company’s own decarbonization. Their role is clearly defined: to contribute to global climate goals by addressing ongoing emissions and to neutralize residual emissions via permanent removals. This legitimacy is crucial for rebuilding trust in the VCM. 

3. A Market Tilted Towards Durability: The explicit requirement for "long-lived removals" will force a flight to quality. Projects that can scientifically prove their ability to store carbon for centuries, not just decades, will command a premium. 

This is precisely where blue carbon projects move from being a compelling option to a strategic necessity. 

Focus on the Blue carbon 

Blue carbon refers to the immense quantities of CO₂ sequestered and stored in coastal and marine ecosystems like mangroves, seagrass meadows, and tidal marshes. Unlike terrestrial forests where carbon is stored primarily in biomass, the majority of carbon in blue carbon ecosystems is trapped in the soil and sediment. 

Protected from decomposition in low-oxygen, waterlogged conditions, this carbon can remain locked away for centuries to millennia. This makes high-integrity blue carbon projects a premier example of the durable, long-lived nature-based removals that the new SBTi standard will demand. 

IV. Strategic Imperatives for Companies with SBTi Targets

The message from the SBTi is clear: waiting is no longer an option. Companies with science-based targets must act now to align their climate strategies with this new reality. 

1. Engage with Carbon Removals Proactively: Don't defer CDR investment until 2049. Begin integrating high-quality removals into your climate strategy now. This allows you to build partnerships with trusted project developers, lock in supply, and demonstrate early leadership by achieving "Recognized" or "Leadership" status. 

2. Assess Your "Ongoing Emissions" Footprint: Conduct a thorough analysis of your projected emissions trajectory to understand the scale of your ongoing emissions. This will inform your budget for voluntary (or mandatory if you are in category A) contributions and prepare you for the mandatory requirements to come. 

3. Prioritize Quality and Durability in Your Portfolio: Move beyond simply buying the cheapest available credits. Conduct deep due diligence on carbon projects, prioritizing those with robust third-party verification, clear evidence of permanence (durability), and tangible co-benefits. Solutions like certified blue carbon projects should be at the top of your list. 

4. Develop Your Climate Transition Plan: The SBTi now requires companies to publish a climate transition plan. This should not only detail your abatement strategy but also outline your approach to taking responsibility for ongoing emissions and neutralizing residual ones. 

5. Leverage New Scope 3 Flexibility: The draft provides more nuanced options for tackling value chain emissions, focusing on material sources and encouraging supplier engagement. Use these levers to drive deep reductions internally, reinforcing the credibility of your beyond-value-chain contributions. 

Ready to align your net-zero strategy with the future of climate action? Explore how Apolownia's portfolio of high-integrity blue carbon projects can help you meet the rigorous demands of the new SBTi standard and secure your position as a credible climate leader. 

ABOUT APOLOWNIA

Apolownia is a mission-driven company committed to making a significant impact in the climate sector.   

We support businesses and funds willing to engage in long-term and impactful decarbonization strategies - within and beyond their own value chain - by designing, implementing and monitoring science-based carbon reduction projects that restore natural ecosystems. 

Through technology and innovative solutions, we aim at shaping a resilient and environmentally friendly world, by encouraging the decarbonization of the economy and supporting social and environmental initiatives.

You can drive positive change for the climate, biodiversity and local communities. 

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