The SBTi has made important changes to its new Net-Zero Standard, sending a signal to companies to purchase permanent CDR as part of reaching their climate targets.
What the new Net-Zero Standard says
The final SBTi Corporate Net-Zero Standard Version 2.0, published today, is an improvement on the November 2025 draft and to some extent addresses the core concern raised by the NCRA and the close to 60 co-signatories of our open letter.
Key elements of the updated standard are co-claiming, the deadline for mandatory purchases of carbon removal by many companies as of 2035, and the strengthening of the like for like principles when compensating for long-lived emissions using permanent carbon removal (CDR).
The updated standard creates two distinct pathways for companies to use permanent CDR:
- Neutralization of residual emissions, which becomes mandatory at the net-zero target year,
- The Ongoing Emissions Responsibility (OER) program, which is voluntary until 2035. After 2035, the OER program will become mandatory for large companies worldwide or companies in high-income countries that meet specific emissions or financial thresholds (so-called “Category A” companies”).
The most important change from the November draft is the removal of paragraph C29.6. This paragraph’s wording prohibited co-claiming, where the same removal is also counted in a host country’s NDC, threatening to make the vast majority of high-integrity Nordic CDR credits ineligible for corporate neutralization claims. That paragraph is gone. In its place, the standard introduces Recommendation R46.1, which recommends that companies seek to avoid simultaneous NDC claims where possible, but makes this a recommendation rather than a requirement. This is a workable outcome and reflects the reality that the international framework for corresponding adjustments under Article 6 in the voluntary corporate context is still developing. Accordingly, the details around claims and target fulfillment are likely to need further clarification as part of editions of the standard.
In practical terms, the new approach to claims means that a company purchasing a permanent CDR credit from a Nordic BECCS, DACCS, advanced biochar or ERW project can use that credit for its neutralization claim or OER commitment under the SBTi framework, even if the host country also counts the removal in its NDC. Where corresponding adjustments have been applied, as in the Norway-Switzerland Article 6 framework, the claim is the highest possible integrity. Where they have not, companies must disclose this under paragraph C46.6 but are not disqualified from making the claim.
The 2035 mandatory OER deadline, combined with the like-for-like principle requiring long-lived emissions to be neutralized by long-lived removals, creates a clear and near-term demand signal. From 2035, Category A companies must support long-lived removals equal to at least 10% of emissions from long-lived greenhouse gases, rising to 100% by their net-zero year. Nordic projects delivering permanent geological storage are precisely the type of suppliers that this demand framework requires.
NCRA initial assessment
The final standard is a workable and credible framework for permanent CDR purchases, and the NCRA welcomes it.
Co-claiming for permanent CDR is made possible
The removal of C29.6 resolves the most commercially significant barrier to Nordic CDR credit eligibility under the SBTi framework. Nordic project developers, whose credits are in most cases counted toward host country NDCs under national climate strategies, can now supply SBTi member companies without those companies losing the ability to make credible neutralization or OER claims. This is the outcome the NCRA has consistently and successfully argued for.
A strong signal for CDR purchases under the Ongoing Emissions Responsibility
The three-tier OER structure, Engaged at 1%, Advanced at 10%, and Leadership at 100% of Scope 1-3 with a USD 80 per ton contribution budget, creates a differentiated entry point for companies that are at different stages of their climate journey. The Leadership tier represents a significant and credible commitment for companies to direct their contribution budget toward permanent CDR. The NCRA encourages its members and the broader Nordic corporate community to consider the Leadership tier as the most impactful option for companies that are serious about CDR as part of their net-zero strategy.
The 2035 target introduces a sense of urgency for corporates
The 2035 deadline for the mandatory purchase of carbon removals is both an opportunity and a call to action. Building supply relationships with Nordic CDR project developers now, before the mandatory deadline creates competitive pressure on supply, is strategically sensible. Projects reaching financial close today will be delivering credits in the 2028 to 2032 window, which is exactly when early OER demand begins to scale. Companies that wait until 2034 to begin building supply relationships will find the market for high-quality permanent removals significantly more constrained and more expensive.
Effective communication around CDR purchases requires additional work
The disclosure requirement under C46.6, requiring companies to report whether credits have been authorized by the host country and subject to corresponding adjustments, is manageable but requires planning. Companies should work with reputable registries and Nordic developers who can provide clear and auditable documentation on this point. The NCRA is actively working on developing guidelines on how companies can communicate their CDR purchases in an effective and credible manner based on existing legislation and standards, including SBTi.
What needs to happen next
The new SBTi Net-Zero Standard has delivered a signal to the voluntary market that permanent carbon removals will be part of their transition plans. The policy and infrastructure work must now accelerate to maintain and build on this momentum.
The EU ETS revision proposal, expected on 15 July, must deliver a credible CDR integration mechanism with binding volumes and a price bridging instrument. The Buyers’ Club must operationalize quickly and with sufficient volume to underwrite near-term investment decisions.
Nordic governments must finalize and launch national support schemes, including the Norwegian project subsidy and the possible reverse fee, a possible Danish tax credit, and provide clear guidance on revenue stacking and co-claiming wherever needed. The cross-border transport and storage infrastructure that Nordic CDR projects depend on must shift from made-to-measure solutions to a planned and coordinated hub approach.
The NCRA will be active on all these fronts in the second half of 2026 and throughout 2027. The new SBTi standard provides a stronger mandate and a clearer market signal for the Nordic CDR industry to work with. We look forward to putting it to use.
About the SBTi Net-Zero Standard
The Science Based Targets initiative (SBTi) is the world’s leading standard-setter for corporate climate targets, used by around 11 000 companies globally to define and validate their net-zero commitments. The rules set out in its Net-Zero Standard determine how companies can use carbon removal to address residual emissions directly determine the size and credibility of the corporate CDR market.