IETA statement on SBTi version 2 of the Corporate Net Zero Standard

IETA welcomes the release today [11 June 2026] by the SBTi of version 2 of the Corporate Net Zero Standard (“Standard”), which follows the publication in May of its new strategy for 2026-2039 entitled, “From Ambition-setter to transformation partner”. We see evidence that the Standard is beginning to deliver on the new strategy by encouraging greater corporate action, providing more flexibility and recognising the importance of market-based approaches.

IETA is committed to help our members contribute to the Paris Agreement climate goals. Many are already using market-based cooperation to increase their actions through international investments, and accelerate the energy transition, and they are ready to do more as policies become more clear.  The Standard provides an improved methodology for companies to follow and a practical toolkit for their pursuit of “net zero” goals. Its release is timely given the urgent need to fill the ambition gap.

The Paris Agreement encourages cooperation through carbon markets to drive more ambitious reductions in greenhouse gas emissions and removals in nature and other “sinks”. Most major economies are now using flexible market-based policies because they are proven to be environmentally effective, economically efficient and competitively fair. Leading companies are complying with these government policies – and using similar tools to address emissions not governed by law. IETA is encouraged that SBTi recognises this important policy trend in its new Standard.

IETA welcomes the increased role of market-based instruments in version 2 of the Corporate Net Zero Standard to address ongoing emissions through the retirement of high-quality carbon credits. The Ongoing Emission Responsibility (OER) programme includes three status levels to incentivise action, which is a significant improvement from the draft version. The OER programme provides a practical, stepped approach and acknowledgement of action taken through the three levels – ‘Engaged’, ‘Advanced’ and ‘Leadership’. Importantly, it also recognises and accommodates the role of value chain partners for scope 3 emission cover.

To ensure the urgency of our collective response to the Paris Agreement goals, we encourage SBTi to go further still. In particular:

• Encourage the use of credits - with the appropriate guardrails - to help companies meet their interim and long-term decarbonisation targets, as called for in the IETA Guidelines for  High Integrity Use of Carbon Credits.
• Drive ambition further. Bring forward the date to publish carbon market guidance from 2027 (as stated in the new Strategy) to late 2026. This will ensure companies are equipped this year to put investment strategies in place and start building carbon credit portfolios. Further, while we are pleased with SBTi’s intent to signal a mandatory phase for the OER programme from 2035 onwards, we would like to see this brought forward to 2030.
• Recognise all use cases for credits to include both reductions and removals (including neutralisation of residual emissions).  We must incentivise the protection and enhancement of our natural sinks.
• Increase incentives for voluntary action. The OER programme level thresholds are extremely broad and we remain concerned that there is insufficient incentive to progress to the upper levels of each threshold, in particular the middle (Advanced) threshold. The price point for the Leadership level could be another disincentive to act. More should be done to encourage action.

IETA stands ready to support the SBTi in the development of the guidance on use of market mechanisms and high integrity carbon credits.