Two new standards for corporate net-zero were recently published: SBTi Corporate Net Zero Standard Version 2.0 and the draft ISO 14060 standard on Net Zero Aligned Organizations. Although they differ in their recommended deployment timelines for durable CDR, both recognize its role in neutralizing residual emissions and in boosting demand.
SBTi 2.0
SBTi 2.0 shifts the role of CDR from a final step in corporate net-zero, neutralising 10% of residual emissions, to a mandatory requirement for all new SBTi targets. Starting in 2035, large emitters (Category A companies) are required to neutralize their residual emissions through both temporary and durable CDR, starting at 1% per year, with the share of durable CDR gradually increasing from 10% to 100% by their net-zero year.
To put this in perspective, nature-based CDR amounts to 2200 MtCO2 / year, representing 99.95% of all CDR methods. Durable CDR, which should gradually increase and neutralize 100% of residual emissions to achieve net-zero currently stands at 2 MtCO2 / year or 0.05% of all CDR according to the latest State of Carbon Dioxide Removal report.
Developing durable CDR projects takes time as it requires R&D, financing, partners, complex execution and permits, and extensive certification process. Without near-term demand and scaling the market, large volumes after 2035 are unlikely, with scarce spot credit availability at high prices. To be able to guarantee durable CDR availability, companies should secure it well before 2035 through long-term offtake agreements.
Before 2035, organizations can voluntarily neutralize a share of their emissions through reduction, avoidance, or removal credits. The volume of emissions is flexible and depends on their ambition with 1% (Engaged), 10% (Advanced), or 100% (Leadership). SBTi’s recommended minimum internal carbon prices—$20/tCO2e for 1% and 10%, and $80/tCO2e for 100% discourage investment in durable CDR, which still costs $200–400 per tonne of CO2e, depending on the method.
Draft ISO 14060 Standard on Net Zero Aligned Organizations
The ISO 14060 Draft puts the urgency of climate change mitigation into practice by guiding companies to pursue ambitious net-zero pathways and deploying CDR in the near term. The sooner residual emissions are neutralized, the less overshoot occurs over the century.
Companies should buy CDR within five years of adopting the standard and increase purchases over time, with emphasis on durable CDR closer to the net-zero target year. The ISO standard allows companies to achieve net-zero early by buying CDR if they demonstrate that further emissions reductions are not technically or economically feasible. The draft calls for a transition to durable CDR with at least 100 years of permanence by the net-zero target year.
Companies should also demonstrate a readiness plan to procure CDR in the long term. This will ensure they are all aware of the current supply constraints and the need to scale the market to guarantee the required volumes in the future through e.g. offtake agreements, options, and building a portfolio of durable methods.
How does Carbonaide fit it?
Carbon storage alone does not deliver a viable business case for concrete manufacturers, but, together with utilization benefits, it makes low-carbon concrete economically viable. In the longer term, the phase-out of free emission allowances for cement producers, together with the Carbon Border Adjustment Mechanism (CBAM), will increase production costs and make low-carbon alternatives even more competitive.
