At GenZero, we welcome the progress reflected in the 2nd version of the Science Based Targets initiative Corporate Net-Zero Standard (CNZS v2) issued late last year. The SBTi’s Corporate Net-Zero Standard is a globally-recognised framework for corporate net-zero target setting in line with climate science. To limit global temperature increases to 1.5°C or minimise any overshoot, we will need all corporates to act to reduce and remove global emissions.
The introduction of the Ongoing Emissions Responsibility framework is a promising step forward as it rightly encourages mitigation beyond the value chain.
Yet, as science and policy remind us, ambition must be paired with practical pathways for near-term action.
Based on our review, we see several opportunities to further enhance the standard.
- An opportunity to enable high-integrity carbon credits to support interim targets: CNZS v2 presents an opportunity to further align with Article 6 of the Paris Agreement and government policies by enabling the use of high-integrity mitigation outcomes toward interim targets. Doing so would help catalyse near-term mitigation, an outcome that climate science consistently highlights as critical to limit temperature increases while maintaining robust integrity safeguards.
- An opportunity to adopt a quality-based approach to neutralisation: By broadening the framework beyond removals alone, CNZS v2 could more fully reflect the Paris Agreement’s quality-based approach, which recognises both credible reductions and removals. This would unlock investment into high-impact, scalable reduction activities such as accelerated coal phase-out and sustainable fuels, alongside removals, supporting a more efficient allocation of capital for climate mitigation.
- An opportunity to strengthen voluntary climate finance by not mandating Corresponding Adjustments: CNZS v2 clarify that Corresponding Adjustments are not required for voluntary corporate action. This would preserve accounting integrity while allowing host countries the means to attract private capital that can support the achievement of their Nationally Determined Contributions.
- An opportunity to unlock early investment through flexible EAC design: Refining the treatment of Environmental Attribute Certificates (EACs) to better reflect their role as tracking instruments, rather than offsets, would help unlock early investment, particularly in nascent markets. Recognising book-and-claim systems without physical connectivity or additionality requirements can accelerate scale-up in sectors where low-carbon supply chains are still developing.
Read more about our analysis in our Discussion Note below.
