The Science Based Targets initiative (SBTi) has unveiled updated plans to decarbonize high-impact sectors, including oil and gas, chemicals, and power—industries responsible for the bulk of global emissions. The new criteria aim to align businesses with science-based 1.5°C pathways and accelerate the transition to net-zero.
Oil and Gas: First-Ever Decarbonization Standard
Accounting for 85% of global CO₂ emissions, the oil and gas industry is set to receive its first decarbonization framework. The SBTi aims to guide companies in reshaping their business models while attracting green investments. A draft of the standard will open for public consultation in early 2025, followed by a 45-day stakeholder review period.
Chemicals: A Vital Decarbonization Focus
Supporting 95% of manufactured products, the chemicals sector is the third-largest industrial emitter. The SBTi’s criteria for the sector are in pilot testing and open for public input until January 2025. Final guidelines will launch in Q3 2025, helping the industry balance its economic significance with sustainability goals.
Power: Tackling the Largest CO₂ Contributor
The power sector, the largest source of global CO₂ emissions, is under scrutiny as electricity demand grows. SBTi plans to release a draft standard for public consultation in Q2 2025, informed by ongoing input from expert advisory groups.
Public Consultations Open for Stakeholder Input
SBTi has invited stakeholders to contribute to shaping these critical standards, ensuring they are both ambitious and practical. Drafts will be available for review in 2025.
Broader Decarbonization Efforts
In addition to these sectors, SBTi is working on standards for automotive and apparel industries and updating its Corporate Net-Zero Standard. These updates aim to streamline target-setting and reinforce alignment across all resources, marking a major advancement in global efforts to curb climate change.
“This initiative prioritizes sectors with the greatest potential to drive decarbonization, providing businesses the tools they need to lead the energy transition,” the SBTi stated.
The timelines for these standards remain flexible, reflecting the complexity of stakeholder engagement and consensus-building processes.
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