The Science Based Targets initiative (SBTi) has introduced new criteria for the oil and gas, chemicals, and power sectors - industries responsible for the majority of global greenhouse gas emissions. These standards aim to guide businesses toward science-aligned, net-zero pathways, supporting the energy transition and global decarbonization goals.

“By prioritizing sectors with the greatest potential to drive decarbonization, the SBTi provides businesses with the tools they need to lead the energy transition,” stated the initiative.

Oil and Gas: A Milestone Decarbonization Standard

The oil and gas sector, which accounts for 85% of global CO2 emissions, will now have its first decarbonization framework. The plan will provide a roadmap for companies to transform business models, secure financing, and align with net-zero objectives.

The Terms of Reference outlines milestones, with a draft set for public consultation in early 2025.
A second consultation phase will include a 45-day feedback period to ensure comprehensive stakeholder engagement.

Chemicals: Addressing Industrial Emissions

Supporting 95% of manufactured products, the chemicals sector is the third-largest industrial emitter globally.

SBTi's pilot Chemicals Sector Criteria is open for feedback until January 10, 2025.
Final standards will be released in Q3 2025 to help decarbonize this critical sector, which underpins industries such as agriculture, construction, and healthcare.

Power Sector: Tackling the Largest Contributor to CO2 Emissions

With the power sector responsible for the largest share of global emissions, SBTi’s updated Power Sector Standard will provide guidelines for reducing the environmental impact of rising electricity demand.

The first draft is expected in Q2 2025, with advisory groups providing input for ambitious and actionable outcomes.

Broader Impacts and Future Plans

SBTi is also working on decarbonization standards for other industries, including automotive and apparel, while updating its Corporate Net-Zero Standard. These efforts aim to streamline the target-setting process and ensure compatibility across sectors.

While timelines remain tentative, the updates represent a significant step toward achieving global decarbonization goals.