Key Takeaways
The Voluntary Carbon Market (VCM) is entering a new phase. With the release of the SBTi Corporate Net-Zero Standard V2.0 and the rollout of the EU Carbon Removal Certification Framework (CRCF), companies will need to rethink how they procure and use carbon credits as part of their climate strategies.
While carbon credits continue to play an important role in addressing ongoing emissions, expectations around credit quality, removals, disclosure, and long-term planning are becoming significantly more demanding. Organizations that prepare early will be better positioned to secure high-quality supply and manage future costs.
For years, many organizations have purchased carbon credits on a spot basis to complement their decarbonization efforts. That approach is becoming increasingly difficult as both regulatory expectations and the carbon market evolve.
SBTi V2.0 is changing how companies can use carbon credits as part of their net-zero strategy. The new Corporate Net-Zero Standard introduces Ongoing Emissions Responsibility (OER), which recognizes the role of verified climate action in addressing residual emissions while a company progresses toward net zero. Importantly, carbon credits cannot be used to meet a company's Scope 1, 2, or 3 reduction targets. Instead, they sit alongside emissions reductions through the OER framework. The Standard also establishes a longer-term shift toward carbon removals: from 2035, Category A companies will be required to address a growing share of their ongoing emissions through eligible removals, with the requirement increasing toward their net-zero year.
The EU Carbon Removal Certification Framework (CRCF) is also raising the bar for carbon removal projects. The CRCF establishes an EU-wide certification system for carbon removals, carbon farming, and carbon storage in products, based on criteria including additionality, robust quantification, permanence, and environmental sustainability. As certification schemes and projects begin coming online, the framework is expected to provide greater clarity around which removal activities meet European quality expectations. For companies planning their future carbon procurement, this makes the choice of carbon projects and their potential eligibility increasingly important.
Together, these developments are changing what companies procure, which projects they prioritize, and how far ahead they need to plan. The direction is increasingly toward high-quality, verified removals, while future demand and certification requirements could put additional pressure on both availability and price.
One of the biggest changes introduced by SBTi V2.0 is that carbon credits are no longer discussed as a way to compensate for emissions reductions.
Instead, they are recognized through the new Ongoing Emissions Responsibility (OER) framework, encouraging companies to take responsibility for residual emissions while prioritizing internal decarbonization.
During the initial voluntary phase that takes place from now until 2035, organizations may use a range of verified mitigation outcomes. However, the framework signals a long-term transition toward carbon removals, particularly for larger companies. In fact, from 2035 onwards, companies are required to support eligible carbon removals equal to at least 1% of ongoing scope 1, scope 2, and scope 3 emissions, rising linearly to 100% by the company’s net-zero target year, and no later than 2050.
This reinforces an important message: reducing emissions remains the priority, while high-quality carbon credits play an essential complementary role. If you would like to receieve an in-depth explanation from our experts, don't hesitate to contact us.
Carbon removals have already become one of the fastest-growing segments of the voluntary carbon market. Looking ahead, policy developments suggest demand for removal credits is likely to increase as organizations prepare for future requirements and seek higher-integrity climate action. At the same time, the EU CRCF is creating a common certification framework for removals across Europe, establishing clearer quality standards and increasing confidence in certified projects.
As more buyers compete for a limited supply of high-quality removals, early planning is becoming increasingly valuable to secure credit supply and anticipate long-term needs. Although this is the case, it is important to remember that avoidance credits are not inherently inferior to removal. For more information, please read our article.
Rather than purchasing credits year by year, many organizations are beginning to evaluate longer-term procurement strategies.
A forward-looking approach can help companies:
The right approach will depend on each organization's emissions profile, climate ambitions, and reporting framework. For more information on building a carbon portfolio of high-quality projects, please read our guide.
Although every organization is different, there are several questions sustainability leaders should begin discussing now:
Answering these questions early can help organizations avoid future supply constraints while aligning their strategy with rapidly evolving market expectations.
The carbon market is evolving rapidly , but these transformations also create an opportunity to build a more resilient and future-ready climate strategy.
At ClimateSeed, we support organizations in navigating evolving standards, while building long-term corporate resilience through a carbon portfolio approach and the developing of strategies aligned with their decarbonization goals. Whether you are assessing the implications of SBTi V2.0, exploring high-quality carbon projects, or considering a multi-year procurement approach, our team of experts can help you build and scale high-impact climate strategies.
Get in touch with our experts to discuss how these changes could affect your organization and explore tailored carbon credit procurement scenarios.
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