Will SBTi’s new Ongoing Emissions Responsibility framework unlock carbon credit demand?
By Article 6 Network
Earlier this year, the SBTi gave carbon credits arguably their clearest role yet in corporate climate strategies through its new Ongoing Emissions Responsibility (OER) framework. The framework could eventually channel significant new demand into carbon markets. But until purchases become mandatory in 2035, companies may wait rather than spend now, so a near-term demand boost is far from guaranteed.
The feature examines whether OER, introduced in the SBTi’s revised Corporate Net-Zero Standard, will translate into actual purchases. The open question is whether companies will buy now or wait until requirements bind.
The SBTi published the final Corporate Net-Zero Standard V2.0 on 11 June 2026, with validation under the new rules starting in 2027. OER replaces the earlier Beyond Value Chain Mitigation guidance. Companies that take responsibility for their ongoing emissions can earn public recognition at three levels: Engaged, Advanced and Leadership. Until 2035, OER is voluntary and open to all credit types, including reductions outside a company’s value chain, projects that protect or restore natural carbon sinks, and removals. Carbon credits cannot be counted against Scope 3 targets.
From 2035, large companies and medium-sized companies in high-income countries must buy carbon removal credits, starting at 1% of ongoing emissions and rising to cover all residual emissions by their net-zero year. Credits bought earlier for value chain emissions or carbon-neutral claims do not count towards recognition under the new standard.
Signals to watch
- Voluntary phase demand is uncertain: Before 2035, OER rewards purchases with recognition but does not require them. Watch whether major companies seek Advanced or Leadership status in early 2027 validations. That will be the first real test of near-term demand.
- Quality filters favour high-integrity credits: OER requires documented due diligence on credits and the projects behind them. Credits with strong integrity signals, such as Core Carbon Principles labels, PACM-aligned methodologies or host-country authorisation, are likely to be favoured by companies worried about greenwashing risk.
- A potential corporate channel for Article 6 units: Authorised credits and A6.4ERs offer clear accounting and lower double-claiming risk. If companies choose correspondingly adjusted units for OER, it would create a corporate demand stream alongside sovereign buyers and CORSIA. Watch for corporate procurement policies that specify authorisation.
- Removals market gets a long-term anchor: Mandatory removal purchases from 2035 give removal developers a defined future demand curve. This supports offtake agreements and project finance for durable and nature-based removals, including those that host countries may authorise under Article 6.
- Interaction with weak operational performance: Analysts recently found almost a third of SBTi-validated companies have higher operational emissions than in their base year. OER may draw scrutiny if companies appear to buy credits instead of cutting emissions. The standard’s insistence that credits complement reductions, not replace them, will be tested.
