--- title: "Unpacking the SBTi Net Zero Standard: What It Means for Removals Demand" description: Explore the updates in the SBTi Net Zero Standard and their impact on corporate climate action and carbon removals demand. image: https://blog.alliedoffsets.com/hubfs/Screenshot%202025-07-03%20at%2015.01.41-1.png --- [![AlliedOffsets logo](https://blog.alliedoffsets.com/hubfs/AlliedOffsets_July2026/images/AlliedOffsets-logo.svg "AlliedOffsets logo")](http://alliedoffsets.com) [![logo](https://blog.alliedoffsets.com/hubfs/AlliedOffsets_July2026/images/logo%20(2).svg "logo")](https://staging-wp.alliedoffsets.com/) - About - [About](https://staging-wp.alliedoffsets.com/about/) - [Clients & Partners](https://staging-wp.alliedoffsets.com/clients-partners/) - [Team & Careers](https://staging-wp.alliedoffsets.com/team-careers/) - Products - [API: Data Integration](https://staging-wp.alliedoffsets.com/api/) - [Dashboard: Carbon Data](https://staging-wp.alliedoffsets.com/dashboard/) - [Consulting and Bespoke Offerings](https://staging-wp.alliedoffsets.com/consulting-and-bespoke-offerings/) - [Portfolio Monitoring](https://staging-wp.alliedoffsets.com/portfolio-monitoring/) - Carbon Data - [Carbon Pricing](https://staging-wp.alliedoffsets.com/pricing/) - [Carbon Market Forecasting](https://staging-wp.alliedoffsets.com/forecasting/) - [Carbon Policy](https://staging-wp.alliedoffsets.com/policy/) - [CDR Data](https://staging-wp.alliedoffsets.com/cdr/) - [Buyers](https://staging-wp.alliedoffsets.com/buyers/) - Solutions - [Investing in projects](https://staging-wp.alliedoffsets.com/investing-in-projects/) - [Developing projects](https://staging-wp.alliedoffsets.com/developing-projects/) - [Sourcing projects](https://staging-wp.alliedoffsets.com/sourcing-projects/) - [Selling credits](https://staging-wp.alliedoffsets.com/selling-credits/) - [Trading credits](https://staging-wp.alliedoffsets.com/trading-credits/) - [Market Trends](https://staging-wp.alliedoffsets.com/market-trends/) - Insights & Resources - [Reports, webinars & events](https://staging-wp.alliedoffsets.com/reports/) - [Newsletter](https://staging-wp.alliedoffsets.com/newsletter/) - [Media & Citations](https://staging-wp.alliedoffsets.com/media-citations/) - [Contact](https://staging-wp.alliedoffsets.com/contact/) - About - [About](https://staging-wp.alliedoffsets.com/about/) - [Clients & Partners](https://staging-wp.alliedoffsets.com/clients-partners/) - [Team & Careers](https://staging-wp.alliedoffsets.com/team-careers/) - Products - [API: Data Integration](https://staging-wp.alliedoffsets.com/api/) - [Dashboard: Carbon Data](https://staging-wp.alliedoffsets.com/dashboard/) - [Consulting and Bespoke Offerings](https://staging-wp.alliedoffsets.com/consulting-and-bespoke-offerings/) - [Portfolio Monitoring](https://staging-wp.alliedoffsets.com/portfolio-monitoring/) - Carbon Data - [Carbon Pricing](https://staging-wp.alliedoffsets.com/pricing/) - [Carbon Market Forecasting](https://staging-wp.alliedoffsets.com/forecasting/) - [Carbon Policy](https://staging-wp.alliedoffsets.com/policy/) - [CDR Data](https://staging-wp.alliedoffsets.com/cdr/) - [Buyers](https://staging-wp.alliedoffsets.com/buyers/) - Solutions - [Investing in projects](https://staging-wp.alliedoffsets.com/investing-in-projects/) - [Developing projects](https://staging-wp.alliedoffsets.com/developing-projects/) - [Sourcing projects](https://staging-wp.alliedoffsets.com/sourcing-projects/) - [Selling credits](https://staging-wp.alliedoffsets.com/selling-credits/) - [Trading credits](https://staging-wp.alliedoffsets.com/trading-credits/) - [Market Trends](https://staging-wp.alliedoffsets.com/market-trends/) - Insights & Resources - [Reports, webinars & events](https://staging-wp.alliedoffsets.com/reports/) - [Newsletter](https://staging-wp.alliedoffsets.com/newsletter/) - [Media & Citations](https://staging-wp.alliedoffsets.com/media-citations/) - [Contact](https://staging-wp.alliedoffsets.com/contact/) ![Unpacking the SBTi Net Zero Standard: What It Means for Removals Demand](https://blog.alliedoffsets.com/hubfs/Screenshot%202025-07-03%20at%2015.01.41-1.png) # Unpacking the SBTi Net Zero Standard: What It Means for Removals Demand - Home - [AlliedOffsets](https://blog.alliedoffsets.com) - Unpacking the SBTi Net Zero Standard: What It Means for Removals Demand [Max Denniff](https://blog.alliedoffsets.com/author/max-denniff) 07/04/2025 [AlliedOffsets Data Updates](https://blog.alliedoffsets.com/tag/alliedoffsets-data-updates), [Policy](https://blog.alliedoffsets.com/tag/policy) [0 Comments](https://blog.alliedoffsets.com/unpacking-the-sbti-net-zero-standard-and-what-it-means-for-removals-demand#postComment) 2 Minutes The Science Based Targets initiative (SBTi) plays a key role in shaping corporate climate action. First launched in 2021, its Net Zero Standard set out the initial framework for companies to align near - and long-term decarbonisation targets with science, covering everything from Scope 1 and 2 reporting to claims validation. Now, with the SBTi Net Zero Standard V2 public consultation having closed on June 1st, we have summarised the key updates and latest insights on our new SBTi dashboard.    ---   What is the SBTi? The SBTi is a corporate climate action organisation that enables companies and financial institutions to reduce greenhouse gas (GHG) emissions in line with the 1.5°C pathway. It provides the standards, tools and guidance needed to help companies set emissions reduction targets and reach Net Zero by no later than 2050. Its mission is to drive science-based climate action, with a vision of a Net Zero and equitable economy by 2050.   ---   What’s new in the draft Net Zero Standard? The new draft standard introduces a number of updates that aim to make the process more actionable, measurable and flexible for companies of different sizes and geographies:   - Beyond Value Chain Mitigation (BVCM): Proposes incentives to support scaling up climate finance and removals - Scope 3 flexibility: Adds options to target green procurement and revenue generation - Accountability model: Introduces a full framework from setting targets to tracking and communicating progress - Split Scope 1 and 2 targets: Reflects the different decarbonisation challenges of each - Simplified requirements: Makes it easier for SMEs and firms in developing markets to set targets - Progress assessment: Includes standardised formulas to track performance over time - Residual emissions: Offers approaches to address remaining emissions at the Net Zero target year - SBTi claims: Adds new guidance on how companies can credibly communicate their status - Commitment process: Replaces the current letter with a more robust public declaration - Data quality: Requires limited assurance of GHG inventories from independent third-party verifiers   ---   What does this mean for carbon removals? Companies with SBTi Net Zero targets are aiming for completion dates between 2030 and 2051. Under the current draft, they could begin purchasing removals now, covering up to 10% of Scope 1 baseline emissions. However, it’s unlikely that all companies will immediately match 100% of their projected residuals. The draft proposes two core approaches for removals: 1. Set removal targets for the near - and long-term, matching residual emissions by the Net Zero year 2. Use a flexible approach, allowing a mix of additional reductions and gradually increasing removals over time   ---   Demand forecast: What does the data say? Our forecast shows two potential pathways: - Current targets only → steady but limited demand growth - Including future targets → sharp increase in demand as we approach 2050 This reflects the gap between where companies are today and the scale of action needed in the years ahead. ![Screenshot 2025-07-03 at 15.01.41](https://blog.alliedoffsets.com/hs-fs/hubfs/Screenshot%202025-07-03%20at%2015.01.41.png?width=798&height=433&name=Screenshot%202025-07-03%20at%2015.01.41.png) Forecasted Carbon Credit Demand Under Current Vs. Future SBTi Targets ---   Why does this matter?  The SBTi draft standard will directly shape how companies approach their Net Zero targets and influence the timing and scale of removals demand over the next two decades. We built this dashboard to give subscribers access to the key figures behind the policy, from company target dates to removals projections. 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