The Science Based Targets initiative (SBTi) sets the most widely used standard for corporate climate targets. Its rule on carbon credits is short: they don’t count towards your targets. What has changed in 2026 is the space it gives credits alongside those targets. This page explains both versions of the standard and the dates that matter. It is part of our claims and rules section.
Do credits count towards SBTi targets?
No. Version 1.3.1 of the Corporate Net-Zero Standard says carbon credits must be reported separately from the greenhouse gas inventory and do not count as reductions towards near-term or long-term science-based targetsSource 2. Credits may be considered only to neutralise residual emissions or to finance additional climate mitigation beyond a company’s targetsSource 2.
Version 2.0 keeps the rule. Its list of mechanisms that are not eligible for target implementation includes greenhouse gas credits used for its Ongoing Emissions Responsibility programme, credits sold or transferred to a third party, and reductions estimated in advance that haven’t yet happenedSource 1. Mitigation supported through that programme can’t be counted towards scope 1, 2 or 3 targets or netted from the inventorySource 1.
Even if a company misses its targets, removals it buys to make up for the gap are not counted towards target progress. Version 2.0 recommends buying them voluntarily in that case, reporting them and following the SBTi Claims PolicySource 1.
Which version applies, and when
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| Date | What happens |
|---|---|
| 14 Apr 2026 | Version 1.3.1 released and effective |
| 11 Jun 2026 | Version 2.0 released |
| 1 Feb 2027 | Version 2.0 effective date |
| Q1 2027 | Target validation under Version 2.0 becomes available |
| 31 Jan 2028 | Last day Version 1.3.1 is available for target setting |
| 1 Feb 2028 | All new target submissions must align with Version 2.0 |
As of Oct 2026 · Source: [1] Corporate Net-Zero Standard, version 2.0 (June 2026)
Release and effective dates come from the standard’s version historySource 1; the validation and transition dates come from the SBTi’s net-zero pageSource 4. Companies that already have targets for 2030 or later are advised to keep them and set their next targets under Version 2.0 from 2028Source 3. Existing validated targets stay valid for their timeframesSource 4.
Where credits do fit: neutralising residual emissions
Net zero under the SBTi has two parts: cut emissions to a residual level in line with 1.5°C pathways, then permanently neutralise what remainsSource 2. Most companies will reduce emissions by at least 90% through their long-term targets, according to the standardSource 2.
Version 2.0 sets out how the residual must be neutralisedSource 1:
- with eligible carbon removals that deliver verified results in the same reporting period as the residual emissions;
- with long-lived removals for residual emissions of long-lived greenhouse gases;
- with removals that may come from inside or outside the company’s value chain;
- without using the same removals to neutralise any other emissions source; and
- with a report of whether the removal credits were authorised by the host country and subject to corresponding adjustments.
Avoidance credits, such as those from renewable energy or forest protection, therefore can’t neutralise residual emissions under the standard. Our guide to removal vs avoidance credits explains the difference.
Where credits do fit: ongoing emissions
Version 1.3.1 strongly encourages companies to go beyond their targets and mitigate emissions outside their value chain, which it calls beyond value chain mitigation (BVCM). It adds that such investment is not a substitute for deep cuts in a company’s own emissionsSource 2.
Version 2.0 turns this into a voluntary recognition programme called Ongoing Emissions Responsibility (OER). Companies are recognised on the SBTi Dashboard for covering a share of the emissions they still release, through verified mitigation or a contribution budgetSource 1.
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| Level | Coverage of ongoing emissions | Contribution budget option |
|---|---|---|
| Engaged | At least 1% of scope 1, 2 and 3 | No set price per tonne |
| Advanced | At least 10%, including 100% of scope 1 and 2 | US$20 per tCO₂e covered |
| Leadership | 100% for Category A companies; 10% (incl. all scope 1 and 2) for Category B | US$80 per tCO₂e covered, plus verified mitigation equal to the tonnes covered |
As of Oct 2026 · Source: [1] Corporate Net-Zero Standard, version 2.0 (June 2026)
At Engaged and Advanced level, a company chooses either verified mitigation equal in tonnes to the emissions covered, or a contribution budget. Leadership needs bothSource 1. The SBTi says the US$80 benchmark reflects the lower end of the estimates it reviewed for a science-based carbon price and will be reviewedSource 1.
Credits used for OER must be permanently retired when they are claimed, and their mitigation counts only if no one else claims it for compliance, offsetting or compensationSource 1. The SBTi says the framework launches in 2027 and that companies with targets under either version will be eligibleSource 3.
From 2035: removals become a requirement
Version 2.0 signals a future obligation. From 2035, companies will have to support eligible carbon removals equal to at least 1% of their ongoing scope 1, 2 and 3 emissions, rising linearly to 100% by their net-zero target year and no later than 2050Source 1. At least 10% of the covered emissions from long-lived greenhouse gases must be met with long-lived removals from 2035, also rising to 100%Source 1. The SBTi says these criteria will be reviewed in the next major revision of the standardSource 1.
Whether a company is in Category A depends on size. Under Version 2.0, it is Category A if it has net turnover of at least €450 million or at least 1,000 full-time employees. In high-income countries, it is also Category A with scope 1 and 2 emissions of at least 10,000 tCO₂e, or if it meets two of three smaller size testsSource 1.
What you can say
Claims: SBTi targets and credits
- Say: “Our near-term targets are validated by the SBTi. Separately, we retired [number] tonnes of [type] credits in [year].” Keep the two apart, as the standard doesSource 2.
- Don’t say that credits helped you meet or progress towards an SBTi target. They can’tSource 1.
- Don’t claim net zero before you have met your long-term target and neutralised the residual. The standard says a company can’t claim net zero until thenSource 2.
Read net zero vs carbon neutral for how the two terms differ, and the VCMI Claims Code for a claims framework that builds on science-based targets. If you are buying credits for a business, start with our guide for companies.