New Research: Could Net-Zero Become [Impossible]?
The carbon dioxide removal (CDR) industry is sounding the alarm over a new draft of the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard. An open letter, signed by 55 stakeholders, warns that the proposed rules could make achieving net-zero goals "impossible" for many companies. The industry fears specific language regarding permanent carbon removals will create uncertainty and discourage vital private investment. This challenge comes as SBTi seeks public feedback on its updated framework, which aims to guide corporate climate action globally. The outcome could significantly impact the pace of global climate progress.
The carbon dioxide removal (CDR) industry is raising serious concerns about a new draft standard from the Science Based Targets initiative (SBTi), claiming it could make achieving net-zero targets incredibly difficult, if not impossible, for many businesses. A coalition of 55 buyers and other stakeholders has sent an open letter to SBTi, urging revisions to ensure companies can confidently use permanent carbon removals in their climate strategies.
The core issue lies in language that the CDR industry believes creates confusion about how permanent removals can count towards a company's net-zero goal. Many removal projects depend on a mix of public and private funding, and if companies cannot claim credit for removals that are also part of national climate inventories, vital corporate investment could disappear. This uncertainty makes planning difficult, increases costs, and threatens to slow down the urgent progress needed to tackle climate change.
Experts, including climate scientist Johan Rockström, emphasize the critical need to rapidly expand permanent CDR technologies to meet the 1.5°C global warming limit. This growth relies on strong partnerships where both companies and governments invest in these projects. The CDR community argues that allowing both nations and companies to count these climate outcomes, through what's called a dual-ledger system, is essential. They believe corporate investment boosts overall climate ambition, bringing more projects and durable carbon reductions.
While SBTi aims to improve clarity and credibility with its updated framework, the CDR sector fears these improvements are undermined by restrictive rules on permanent removals. Companies need clear guidelines and the assurance that their investments in high-quality removals will genuinely help them achieve net-zero. Without this, many firms might find their options shrinking, hindering overall climate action just when it's most critical. The consultation period for this draft is short, highlighting the urgency for stakeholders to influence the final version of this crucial global standard.