SBTi Net-Zero 2026: Corporate Decarbonization Targets Explained
By Sustainability Awakening • Dr. Ahmad Mahmood
New in 2026
Version 2.0 is here
SBTi published its rewritten Corporate Net-Zero Standard on 11 June 2026. It applies from 31 January 2027.
Source: SBTi
Which rules?
Two rulebooks until 2028
V1.3.1until 31 Jan 2028
V2.0from 31 Jan 2027
Source: SBTi
Near-term
Cut Scope 1+2 each year
4.2%
Minimum linear cut for 1.5°C targets under V1.3.1.
Long-term
At least 90% by 2050
Residual emissions must then be neutralised with permanent carbon removals.
Scope 3
The 40% / 67% rule
If Scope 3 is 40% or more of emissions, targets must cover at least 67% of it (V1.3.1).
V2.0 change
Every category over 5%
Large firms must cover each Scope 3 category of 5% or more. Scope 1 and 2 get separate targets.
BVCM becomes OER
Owning ongoing emissions
Engaged1% covered
Advanced10% at $20/t
Leadership100% at $80/t
Source: SBTi V2.0
Credits & EACs
No offsetting your targets
Offsets can't cut your inventory. Power certificates need a regional match and plants under 15 years old.
Worked example
A 50,000 t manufacturer
202550,000 t
203042,988 t
203535,975 t
Source: our calculation; illustrative