February 18, 2026
In our recent webinar, “Carbon Management Strategy: Industrial Approaches to Insetting, Offsetting, and Emission Removals,” ClimeCo’s David Prieto and Kayla Carey joined Kyra Power from the Science-Based Targets initiative (SBTi) to discuss the transformative shifts coming with the Corporate Net-Zero Standard Version 2.
Here are the five most critical takeaways for leaders navigating this evolving landscape.
1. SBTi is Moving Toward a “Pragmatic” Business Language
Historically, many industrial firms found it difficult to set SBTi targets because they relied on a strictly linear, year-over-year contraction of emissions. Version 2 introduces more flexibility to align with real-world business cycles. New pathways, such as alignment-based targets and asset decarbonization plans, allow companies to account for the step-changes typical of capital-intensive industries, like waiting for a specific replacement cycle for a manufacturing facility.
2. Market-Based Accounting is Expanding Beyond Scope 2
One of the most significant proposed changes is expanding of market-based accounting to Scope 1 and Scope 3. By leveraging Environmental Attribute Certificates (EACs), companies can invest in decarbonization activities where physical traceability of molecules or products in their supply chains is not feasible. This is particularly relevant for commodities like steel, cement, and chemicals, where physical traceability challenges and limited geographic availability of low-carbon supply present significant barriers to scaling alternatives.
3. Offsetting is Rebranded as “Taking Responsibility”
The proposed standard moves away from the “either/or” debate regarding internal reductions versus offsets. Under the proposed Recognition Program, companies are encouraged to take responsibility for their ongoing emissions while they remain on a trajectory to net-zero. Whether through carbon credits, R&D investments, or policy advocacy, this program provides a “leadership level” for firms going above and beyond their required science-based targets. Importantly, these actions are intended to complement, not replace, direct emissions reductions within a company’s value chain, which should remain the primary focus of decarbonization efforts.
4. Demand Signals for Carbon Removals Must Start Now
To ensure a robust removal market exists by 2050, SBTi is proposing triggers to generate near-term demand. Version 2 suggests that by 2035, certain large companies (Category A) may be required to begin procuring removals as they approach their target year. Acting early allows firms to secure competitive pricing and manage supply risks before the market becomes overly crowded.
5. A “Portfolio Approach” to Credits Reduces Risk
Decarbonization strategy should not treat insets, offsets, and removals as silos. A holistic EAC strategy allows companies to balance their internal abatement cost curves with external market solutions. By diversifying a portfolio across various credit types, industrial leaders can hedge against high-cost “breakthrough” technologies and improve the overall economics of their journey to net zero.
Ready to dig deeper? Watch the webinar recording here to hear the full discussion on these updates and see the case studies in detail. If you have any questions or would like more information, please contact Tauni Swenson, Senior Director for Sales Enablement at ClimeCo.
About ClimeCo
ClimeCo is an award-winning leader in decarbonization, empowering global organizations with customized sustainability pathways. Our team of respected scientists and industry experts collaborates with companies, governments, and capital markets to develop tailored ESG and decarbonization solutions. Recognized for creating high-quality, impactful projects, ClimeCo is committed to helping clients achieve their goals, maximize environmental assets, and enhance their brand. Partner with ClimeCo to drive meaningful environmental change and take your climate initiatives to new heights.
Contact us at +1 484.415.0501, info@climeco.com, or through our website climeco.com.
For media inquiries, please contact us at media@climeco.com.
