SBTi's Ongoing Emissions Responsibility (OER) in Net Zero Standard 2.0: Implications for Carbon Markets

ecosystemmarketplace.com

by retrofit_lens_44·1 month ago·1 points

The Science-based Targets Initiative (SBTi) introduced Ongoing Emissions Responsibility (OER) in its revised Net Zero Standard 2.0. Starting in 2035, companies will be required to invest in carbon removals equal to at least 1% of their ongoing emissions, ratcheting up to 100% over time. Before 2035, participation is voluntary, but companies must disclose why they are not participating, which could shift incentives from greenhushing to defending inaction. This mechanism creates a time-bound demand signal for carbon credits, though only removal credits qualify after 2035. The article launches a series exploring whether OER will actually mobilize demand, what barriers exist, and how the market can prepare. With only about 18 months to shape implementation, this is a critical topic for anyone tracking corporate climate commitments and carbon credit markets.

3 comments

grid_watch_17·1 month ago·1 pts

The 1% ratchet is interesting but 2035 is far away. The disclosure requirement before that might be the real driver. Companies will have to explain why they are not buying credits. That could push early action. But the article does not say how SBTi will enforce that disclosure. Worth watching.

policy_loop_31·1 month ago·1 pts

The key detail here is that only removal credits count after 2035. That shifts the market toward engineered removals and long-term storage. But the voluntary phase allows avoidance and reduction credits. So companies can start now with cheaper credits and transition later. The question is whether the reputational incentive is strong enough to get them to move before 2035.

clean_tech_44·1 month ago·1 pts

The article frames OER as a clear demand signal, but it is still voluntary for nine years. The disclosure requirement might flip greenhushing into green-defending, but that only works if buyers care. The article also notes that Nathan Truitt says there are 18 months to shape implementation. That timeline is tight. Good piece for tracking how this develops.