Credits cover your ongoing emissions — not just the 2050 residual.
A company keeps emitting while it decarbonises. V2.0 calls these your ongoing emissions — the emissions produced year after year on the path to net-zero. The role of credits is defined in three distinct phases, and only the last is about the 2050 residual.
Credits address emissions you produce today while transitioning — not only the residual emissions remaining at net-zero.
The three phases
Voluntary OER recognition — for ongoing emissions
Category A removals duty
Neutralisation of the residual
Credits and removals are a complement, never a substitute, for cutting emissions. They are reported separately and are not netted off your inventory or counted toward target progress. The core of the framework remains reducing your own emissions.
Three levels, by how much you cover and how you deliver.
Under the voluntary programme you pick a level. Levels differ by the share of ongoing emissions you cover and the delivery approach — supporting verified mitigation outcomes, and/or a contribution budget priced per tonne.
The $80/tCO₂e Leadership benchmark reflects the lower end of science-based carbon-price estimates; the $20 Advanced benchmark reflects observed corporate practice. Both are kept under review.
High-integrity, eligible credits, and eligible removals.
These three terms are often used loosely. The SBTi defines each precisely — and they are not interchangeable.
An activity supported under the OER programme must meet recognised third-party high-integrity criteria and, at minimum, the SBTi's own: due diligence on the implementer and activity; do no harm (human rights, biodiversity, Indigenous Peoples and local communities); avoid carbon lock-in; additionality; independent accredited assurance; and regulatory surplus when counted at the Engaged level.
Source: CNZS V2.0 §6.3 (C42)Credits used for ongoing-emissions responsibility must come from activities delivering ex-post, independently third-party-assured outcomes in tCO₂e; reduce emissions outside your value chain and/or restore natural sinks and/or remove carbon. They must be permanently retired when claimed, not double-claimed, and reported separately. A credit is generally a unit representing one tonne of CO₂e avoided, reduced or removed.
Note — credits used for target implementation (C26) are different: for scopes 1–2 they must be reflected in your physical inventory, be additional, and pass causality and leakage tests. OER credits sit outside the inventory.
Source: CNZS V2.0 §6.2–6.4 (C41–C43); cf. C26To neutralise residual emissions, removal activities must: deliver verified mitigation outcomes in tCO₂e within the same reporting period as the residual emissions; meet the C42 integrity criteria; and may occur within or outside your value chain. Durability must match the gas: residual long-lived GHGs must be neutralised with long-lived removals; other residuals with short-lived, long-lived, or a mix.
From 2035, long-lived removals must cover at least 10% of covered long-lived-GHG emissions, rising linearly to 100% by the net-zero year.
Source: CNZS V2.0 §6.6 (C45.4, C46)A Category A manufacturer at Advanced level covers 100% of scope 1+2 and 10% of total ongoing emissions, delivering a $20/tCO₂e contribution budget toward high-integrity verified mitigation. This is recognised on the SBTi Dashboard — and reported entirely separately from its validated reduction targets.
By its net-zero year, its remaining residual long-lived emissions must be neutralised with long-lived removals — a different, durability-matched requirement.
V1 → V2 comparison (direct quotes) & references
| Version 1.3.1 | Version 2.0 |
|---|---|
| “A voluntary ‘Beyond Value Chain Mitigation’ recommendation…outside the company's value chain.”Transition Guide, p.18 (R12) | “…participate in the optional Ongoing Emissions Responsibility (OER) recognition program.”Transition Guide, p.18 (Ch.6) |
| “…neutralise 100% of residual emissions across all scopes at the net-zero target year.”Transition Guide, p.19 (C28) | “…take responsibility for at least 1% of ongoing emissions in 2035, rising linearly…”Transition Guide, p.19 (Ch.6) |