The Science Based Targets initiative (SBTi) has released its Corporate Net-Zero Standard V2.0, introducing the Ongoing Emissions Responsibility (OER) framework to formally integrate carbon removal into corporate compliance structures. Effective February 1, 2027, the updated standard shifts carbon removal from a voluntary environmental, social, and governance (ESG) add-on into an institutionalized requirement for thousands of companies globally. While participation in the OER recognition program remains voluntary until 2035, the framework establishes a clear trajectory where large corporations must progressively neutralize their residual emissions with certified removals. Consequently, the regulation expands the long-term pool of compliance buyers for high-integrity carbon removal credits.

The major challenge addressed by the new standard is the historical lack of a rigorous, institutional mechanism to manage unavoidable, ongoing greenhouse gas emissions during corporate decarbonization pathways. Traditional voluntary carbon offsetting has frequently faced intense public scrutiny for greenwashing due to inconsistent rules, weak scientific baselines, and a lack of clear permanence definitions. Furthermore, SBTi had not previously finalized the durability classification for biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More carbon removal. This regulatory ambiguity leaves an open question regarding whether biochar credits can officially count toward the upcoming mandatory quotas for long-lived carbon removals, creating temporary uncertainty for market pricing and long-term procurement contract designs.

To resolve these market deficiencies, the OER framework establishes quantified “Climate Contributions” structured across three distinct voluntary recognition tiers—Engaged, Advanced, and Leadership—with financial contribution benchmarks reaching up to $80 per ton of carbon dioxide equivalent. Post-2035, the framework mandates that larger corporations cover an annually increasing percentage of their emissions with verified, long-lived carbon removals, culminating in a 100% neutralization requirement by their net-zero target year. To address the outstanding permanence classification, SBTi is launching a formal Call for Evidence to evaluate durability. This process will assess if contractual, financial, or stewardship mechanisms allow rapid-turnover or intermediate methods to achieve climate-equivalent permanence alongside undisputed geological storage.

The outcomes of this regulatory update fundamentally reshape the economics of the global carbon removal market by transitioning spot-market transactions into structured, multi-year corporate offtake agreements. Although SBTi’s definitive permanence ruling remains pending, high-quality biochar produced with low atomic hydrogen-to-organic carbon ratios remains a prime candidate for the long-lived category due to its scientifically recognized sequestration half-life of centuries to millennia. Existing high-integrity tracking registries, including Puro.earth and Isometric, will be integrated via a forthcoming SBTi third-party recognition mechanism rather than being replaced. For project developers, operational metrics like digital measurement, reporting, and verification (dMRV) tracking and precise pyrolysisPyrolysis is a thermochemical process that converts waste biomass into bio-char, bio-oil, and pyro-gas. It offers significant advantages in waste valorization, turning low-value materials into economically valuable resources. Its versatility allows for tailored products based on operational conditions, presenting itself as a cost-effective and efficient More temperature controls are now elevated into high-value commercial assets necessary to capture premium corporate demand.