The Science Based Targets initiative (SBTi) has released a draft update of its Corporate Net-Zero Standard. This framework helps companies set and reach science-based emissions reduction targets.

The 132-page document, Corporate Net-Zero Standard Version 2.0, shares important updates. These changes focus on flexibility, accountability, and aligning corporate actions with global temperature goals.

The draft is open for public feedback until June 1, 2025, after which it will undergo further revisions before final approval. 

SBTi Chair Francesco Starace emphasized the importance of the net zero standard overhaul, noting:

“The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net zero. Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever.” 

The Major Revisions in SBTi’s Net-Zero Standard

The new draft has several key changes. These include Scope 3 emissions accounting, carbon removal targets, and governance expectations.

Stronger Requirements for Scope 3 Emissions

Scope 3 emissions, which cover indirect emissions from a company’s value chain, have long been a challenge for corporations. Over half of the companies surveyed by SBTi said Scope 3 is their biggest hurdle to reaching net zero. The updated draft proposes new rules for this emission:

• Large companies, those earning over $450 million, must set Scope 3 targets. This rule applies no matter how much they contribute to total emissions.
• Businesses should identify high-emission activities. These should account for at least 1% of their Scope 3 footprint or exceed 10,000 metric tons of CO₂ annually.
• The old fixed-percentage rules for Scope 3 targets are gone. Now, there’s a flexible system that highlights high-impact emissions categories.
• Companies need to use their influence to make sure top suppliers set net-zero targets. This can be done through commitments to cut emissions or by using procurement practices that align with net-zero goals.

This approach seeks to balance what is doable and what is ambitious. It helps companies focus on the biggest sources of emissions in their value chains.

New Approach to Carbon Removal Targets

The draft also sets carbon removal targets to help reduce residual emissions. Companies can add high-integrity carbon removal efforts to their path toward net zero. Three pathways are under consideration in the updated standard:

1. Mandating carbon removal targets alongside emissions reduction commitments.
2. Providing recognition for voluntary carbon removal efforts in corporate strategies.
3. Allowing flexibility in how companies address their residual emissions.

This proposal shows a significant change. It aims to include more carbon removal solutions in corporate net-zero strategies. This shift could boost investment in technologies like direct air capture and nature-based solutions.

• RELATED: Microsoft Leads as Carbon Removal Credits Hit 8 Million Tonnes in 2024

Tighter Governance and Monitoring

To enhance credibility and accountability, SBTi is introducing stricter governance measures:

• Large companies must set net-zero targets within 1 year of commitment, down from the previous 2-year timeframe.
• Organizations will be subject to random audits to verify compliance.
• Companies should check their baseline emissions every year. They need to update their targets if big changes happen, such as mergers or acquisitions.
• A formal climate transition plan must be published within 12 months of target validation.

These measures aim to prevent greenwashing and ensure that companies remain on track to meet their commitments.

What Is the Potential Impact on Carbon Markets?

The new SBTi standard will likely impact voluntary carbon markets, corporate sustainability plans, and rules.

Potential Boost for Carbon Credit Markets

One of the most debated aspects of the revised standard is its evolving stance on carbon credits. SBTi is looking for new ways to include Beyond Value Chain Mitigation (BVCM) in offsetting Scope 3 emissions, even though its use is still limited. This idea lets companies fund emissions reduction projects beyond their own operations. These include reforestation or carbon capture.

If SBTi accepts specific high-integrity carbon credits, demand may rise. This could lead companies to fund big mitigation projects outside their immediate operations. However, concerns remain about ensuring the integrity and permanence of these credits.

Implications for Corporate Climate Strategies

The proposed changes mean companies can’t just focus on overall emissions targets anymore. They need to take a more strategic and data-driven approach to manage emissions. Businesses will need to keep in mind these things:

• Improve supply chain transparency and engagement to meet stricter Scope 3 requirements.
• Invest in renewable energy and zero-carbon electricity procurement.
• Consider carbon removal projects earlier in their net-zero planning rather than treating them as a last resort.

Pressure on Regulators to Align Standards

As SBTi’s framework gets stricter, regulators might feel pressure to match their policies to the standard. This could lead to:

• Stricter mandatory reporting requirements for large corporations.
• Increased scrutiny of corporate climate claims and carbon offset use.
• Greater integration of voluntary carbon market mechanisms into national and regional climate policies.

The Key Challenges and What Comes Next

The proposed updates are a step forward for corporate net-zero strategies, but challenges remain:

Balancing ambition and feasibility can be tough. Some businesses might find it hard to meet the new rules, especially when it comes to Scope 3 emissions tracking.

Ensuring high-integrity carbon removal. The effectiveness of proposed carbon removal targets depends on rigorous verification and permanence criteria.

Industry adaptation. Companies will need time and resources to adjust to the new reporting and compliance standards.

SBTi is currently accepting feedback from corporations, NGOs, policymakers, and other stakeholders until June 1, 2025. The team will publish a second draft after this consultation phase, and they expect to receive final approval by 2026.

Companies that set new near-term targets in 2025 and 2026 can use the current Corporate Net Zero and Near-Term Criteria methods. However, from 2027 onward, all targets must follow Version 2.0.

SBTi’s updated net zero standard marks an important step in corporate climate governance. The new framework seeks to speed up real climate action. It does this by strengthening Scope 3 requirements, adding carbon removal strategies, and boosting accountability.

The standard has challenges, but it can greatly impact corporate sustainability and global carbon markets. Businesses need to get ready for these changes so they can stay credible as part of the global move to net zero.

• READ MORE: How Effective Are Carbon Credits in Corporate Net Zero? SBTi Speaks

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Copper is essential for any modern technology. It powers electrical grids and supports clean energy. It’s also used in electronics and vehicles. The U.S. relies a lot on foreign copper supplies. This raises big concerns about supply security.

Recently, President Donald Trump ordered an investigation into possible tariffs on copper imports. These tariffs might help U.S. mining by making domestic copper cheaper. But they could also increase costs for EVs and renewable energy.

U.S. Faces a Critical Minerals Challenge

S&P Global found that the U.S. has major challenges in securing critical minerals. Robert Friedland, founder of Ivanhoe Mines, warned that depending on foreign sources puts the country in a “dangerous position.”

At CERAWeek, he noted that Wall Street’s focus on quick profits is driving investments away from mining. Developing a new mine takes decades, but only a few have been built lately.

Friedland also suggested a U.S. sovereign wealth fund for domestic mining. This would be like the funds China and Japan have.

Top mining leaders, such as Elias Scafidas from Rio Tinto, say Western companies struggle with long-term funding. Investors hesitate to back mining projects. This is mainly because these projects take too long to become profitable.

Rising Copper Demand Exposes U.S. Supply Gaps

According to the National Mining Association, China controls the supply of 30 out of 44 key minerals. In 2024, the U.S. depended entirely on imports for 12 of the 50 minerals designated as critical in the government’s 2022 list. It also relied on foreign sources for more than half of another 28 minerals.

• As per USGS, In 2024, the copper production of U.S. mine production was an estimated
  1.1 million tons, a decrease of 3% from that in 2023. Arizona accounted for ~ 70% of domestic output. Copper was also mined in Michigan, Missouri, Montana, Nevada, New Mexico, and Utah.

The Center for Strategic and International Studies (CSIS) highlights that the global push for net-zero emissions by 2050 is set to double copper demand by 2035. The key force would be AI-driven demand.

• AI data centers alone are expected to consume up to 200,000 metric tons of copper per year from 2025 to 2028, potentially creating a 2.6-million-metric-ton shortfall by 2030.

BHP projects copper demand will grow by 2.6% annually through 2035, surpassing 50 million metric tons per year by 2050. This outpaces the 1.9% annual growth seen between 2006 and 2021.

S&P Global also revealed that to boost domestic production, the U.S. Department of Energy recently announced $500 million in funding for mining and processing. However, experts believe this is far from enough. Without major changes, the U.S. risks falling further behind in securing its mineral supply.

Despite soaring demand, the copper supply chain faces major obstacles. Labor shortages, strict environmental regulations, and rising costs are slowing production. Experts warn that without faster permitting and increased investment, the U.S. could struggle to secure its mineral supply chains.

• READ MORE: Copper Crunch! How Trump’s Tariffs and Supply Shocks Drive Prices Up

Freeport-McMoRan Pushes for Critical Status to Boost U.S. Copper

Amid this copper conundrum, Arizona-based Freeport-McMoRan Inc, a leading global metals company aims to have copper labeled as a critical mineral.

CEO Kathleen Quirk said at the CERAWeek by S&P Global conference,

“Having the incentives and clarity around those would be a big plus for the domestic copper industry. People are understanding more what copper is used for and its importance in our economy. It’s just a matter of time before it’s classified as a critical mineral.”

She also highlighted that this move could unlock $500 million yearly in tax credits under the Inflation Reduction Act.

Notably, Freeport reported a 3.1% drop in fourth-quarter earnings, falling to $5.72 billion due to lower copper and gold production. The revenue decline highlights ongoing supply issues and market uncertainty in the U.S.

To stay competitive, Freeport is pushing for policy changes to strengthen its global position. The company plans to boost U.S. copper production. This includes developing the Lone Star mine in Arizona that could add 100,000 metric tons each year.

Resource Nationalism and Global Trade Tensions

Countries rich in minerals like cobalt, lithium, and copper are gaining control over their resources. In the past five years, 47 countries have made mining rules stricter. This includes 17 major producers.

According to the Resource Nationalism Index, the number of high-risk countries has jumped from 22 in 2016 to 38 today. Chile and Peru supply 35% of the world’s copper. Recently, they increased government involvement, which creates uncertainty for miners.

                   Copper Production by Country 2025

Resource control is also fueling global tensions. The U.S.-China trade war has grown stronger. China is now limiting exports of gallium, germanium, and antimony. In response, the U.S. is ramping up domestic mining and even considering resource acquisitions like Greenland.

Meanwhile, the European Union is working to reduce its dependence on China. It recently passed the Critical Raw Materials Act to boost local production and recycling of key minerals. As global alliances shift, securing critical minerals has never been more important.

Can the U.S. Sustain? 

Goldman Sachs predicts U.S. copper imports could surge by 50% to 100% in the coming months as buyers rush to secure supply ahead of potential tariffs.

Currently, the May 2025 U.S. copper price is trading at $756 per metric ton above the global benchmark on the London Metal Exchange (LME). This increase follows Trump’s. investigation into potential tariffs aimed at boosting domestic copper production.

Copper is More Critical than Ever

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On March 14, 2025, Prime Minister Mark Carney announced the end of Canada’s federal consumer carbon tax, effective April 1. This move marks a major shift in the country’s climate strategy. While the government insists it’s still committed to cutting emissions, the big question remains—how will Canada meet its climate goals without a direct tax on consumers?

Let’s take a closer look at Canada’s carbon tax battle, its impact on citizens, and what it means for the country’s climate goals.

No More Carbon Tax! What’s Carney Really Up To?

Canada launched its carbon pricing system in 2019 under Prime Minister Justin Trudeau. The goal was to cut emissions by charging businesses and consumers for pollution. This encouraged a shift away from fossil fuels.

B.C.’s 2025 budget estimated that the consumer carbon tax would bring in about $2.8 billion. Out of this, around $1 billion would be given back to the public through the Climate Action Tax Credit.

However, rising fuel costs and inflation frustrated many Canadians. They saw the tax as an extra burden. To ease the strain, the government scrapped the consumer carbon tax.

• The carbon price started at CAD 20 per ton in 2019 and increased annually, reaching CAD 80 per ton in 2024. It was set to climb to CAD 170 per ton by 2030.

News agency National Post highlighted Carney’s statements. He said,

“We have already taken a big decision as this cabinet because this is a cabinet that’s focused on action, it’s focused on getting more money in the pockets of Canadians, it’s focused on building this economy.”

Politics played a big role in scrapping the tax. Conservative leader Pierre Poilievre made it a key promise, saying it raised costs for families and raised inflation. However public opinion was divided. Some saw the tax as costly and ineffective, while others believed it helped reduce emissions.

• MUST READ: A Tale of Two Climate Policies: Canada Rethinks Consumer Carbon Pricing While U.S. Drops Social Cost of Carbon

The Political Battle Over Carbon Pricing

The heat of a political showdown is already palpable. Pierre Poilievre wants to go further. He vows to eliminate all carbon pricing, including taxes on big polluters. He argues the policy hurts businesses and workers, making Canada less competitive.

Reuters reports that Conservatives claim the carbon tax fuels inflation. But the tax is revenue-neutral, and about 80% of Canadians get more in rebates than they pay.

The Wall Street Journal covered Poilievre’s campaign-style event at a steel plant near Ottawa. He warned that Carney’s government might raise industrial emissions taxes to make up for lost consumer carbon tax revenue.

“The combination of Trump’s tariffs and Carney’s carbon taxes would be a disaster for the workers. Workers would lose wages, consumers would pay more money, and jobs would leave Canada, making us even more dependent on the Americans, just like Trump wants.” said Poilievre

He also vowed to repeal all carbon pricing measures if elected, saying,

“Technology, not taxes, is the best way to fight climate change and protect our environment.”

Carnie also defended his action saying cutting the consumer tax doesn’t mean abandoning emissions goals. Heavy polluters will have to still pay. His proposal shifts costs to industries while funding green programs like EV rebates and home energy upgrades.

Carbon Tax Cut: Relief for Households, Concerns for Climate

Even within the Liberal Party, concerns grew over the carbon tax’s impact. In 2023, the government removed the tax on home heating oil, recognizing that lower-income families were struggling. With an election coming up, cutting the consumer tax may have been a strategic move to win back voter support.

Carney said,

“Based on the discussion we’ve had and consistent with a promise that I made and others supported during the (Liberal) leadership campaign, we will be eliminating the Canada fuel charge, the consumer fuel charge, immediately.”

The removal of the consumer carbon tax brings some immediate changes for Canadian households.

• Fuel prices will drop, making gasoline, diesel, and home heating more affordable.
• Propane and natural gas will no longer be taxed.
• Households that received Canada Carbon Rebate payments will get their final installment in April 2025.

For many Canadians, these savings are a relief amid the rising cost of living. However, climate advocates worry that fossil fuel use could increase without financial incentives to cut emissions.

Big industries like steel will still pay carbon fees, and government rebates for EVs, heat pumps, and home energy upgrades will continue. Some provinces, like British Columbia and Quebec, may also keep their carbon pricing systems.

Can Canada Reach Its Climate Goals Without the Carbon Tax?

Canada aims to cut emissions by 40-45% from 2005 levels by 2030 under the Paris Agreement and reach net-zero by 2050. The Canadian Climate Institute estimated that the carbon tax would have reduced emissions by 8-14% by 2030. Without it, new policies will be needed to stay on track.

The consumer carbon tax covered emissions from transportation and buildings. While the tax is gone, government rebates for EVs and home upgrades will continue to help cut emissions in these sectors.

Carney says this change is part of a bigger plan to fight climate change and keep Canada’s economy strong. He has suggested other ideas, like better clean energy incentives and tougher rules for big polluters. Meanwhile, Poilievre wants to replace carbon taxes with expanded tax credits for green technology.

One thing is clear, Canada’s carbon tax may be changing, but the country’s climate policies will remain a key political battleground. The bottom line is simple—if it benefits both citizens and the climate, it’s a win.

• FURTHER READING: Canada’s 2035 Emissions Reduction Goal: Everything You Need to Know

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China has reopened its voluntary carbon credit market after eight years. This has caused sharp price swings. A Bloomberg report showed that the new China Certified Emission Reduction (CCER) credits rose to 107.36 yuan ($14.82) per ton.

This price was 21% higher than mandatory carbon allowances. However, it then fell to 72.81 yuan, a 17% discount.

The price shifts reflect strong initial demand and a limited credit supply. In the first five days, traders exchanged 911,000 tons of credits. That’s almost three times the volume of China’s mandatory emissions market.

Understanding the CCER Program

China’s Certified Emission Reduction (CCER) program is key to the country’s carbon market. It allows companies to trade carbon credits, supplementing the Emissions Trading System (ETS). CCER allows firms to create and sell carbon credits voluntarily.

However, this is different from the ETS, which sets limits on emissions. This approach promotes investments in clean energy and emission reduction projects.

The Ministry of Ecology and Environment (MEE) manages the CCER program. Project operators and verification agencies maintain transparency. On January 23, 2024, China’s voluntary carbon market saw its first transaction. China National Offshore Oil Corporation (CNOOC) bought 250,000 tons of carbon credits.

CCER credits fall into two categories:

• Emission allowances: Government-allocated quotas that companies must follow.

• Certified carbon credits (CCER credits): Tradeable credits from emission reduction projects.

The program helps industries reduce emissions, manage carbon credits, and trade them for financial gain. High-emission sectors can offset quotas, while low-emission industries can trade credits and enhance their reputation. Renewable energy companies can use carbon credit revenue to improve profits.

A New Beginning for CCER Credits

The CCER program started in 2012 to reward projects that cut greenhouse gas emissions. China paused it in 2017 because of worries about project approvals. In 2024, the Ministry of Ecology and Environment revived the program.

It now focuses on four areas: afforestation, solar thermal power, offshore wind power, and mangrove restoration. This effort aims to promote green projects and help China meet its carbon neutrality goals.

Notably, the China Beijing Green Exchange (CBGEX) believes China’s carbon market will expand significantly because of financialization. The estimated quota is 7 to 8 billion tons. Annual trading volumes could exceed 10 billion tons. Transaction values might top RMB 1 trillion (US$140 billion).

China’s Carbon Emissions: 2025

China’s emissions surged in 2023, putting the country off track from its goal of reducing carbon intensity by 18% under the 14th Five-Year Plan (2021-25). To stay on course for its 2060 carbon neutrality target, CO2 emissions must now drop by 4-6% by 2025.

• RELATED: Experts Say China’s Emissions Peak Is Near: How EVs and Renewables are Playing a Big Part

Expanding the Carbon Credit Market

The Bloomberg report further revealed more details about China’s expansion of its carbon credit market.

• China approved nine new projects expected to supply 9.5 million tons of carbon credits in 2025.

These projects include seven deepwater offshore wind farms and a solar thermal plant. Key state-owned companies leading these initiatives are China Three Gorges Corp, State Power Investment Corp, China Energy Investment Corp, and China General Nuclear Power Corp.

China’s national carbon market, launched in 2021, initially covered power utilities. However, low liquidity and oversupply kept prices below European levels. It plans to include steel, aluminum, and cement producers by the end of 2025, expanding coverage to a larger share of national emissions.

BloombergNEF analyst Layla Khanfar explained that the market activity picked up a bit in February after a slow start. However, supply and demand are still lower than in early 2023.

Strengthening ETS to Counter CBAM Impact

China is a top exporter of CBAM-liable goods. From 2026 to 2040, it will likely ship about 868.94 million metric tons of these commodities, according to a forecast from S&P Global Commodity Insights. Iron and steel account for 42% of these exports, cement 8%, and aluminum 6%.

The country’s ETS (launched in 2021) now covers 40% of emissions and is set to expand to 8 billion tons. Major 2024 reforms include stricter allowance banking rules, a shorter compliance cycle, and the addition of CBAM-affected industries.

Clear Blue Market forecasted that the China Emissions Allowance (CEA) price, averaging 98 yuan (€13) in 2024, is projected to reach 100 yuan (€13) in 2025 and 200 yuan (€25) by 2030, with a market deficit expected by 2026.

To meet CBAM regulations, China requires factories emitting over 26,000 tons of CO₂ annually to verify emissions data. Thus, China is challenging the EU’s CBAM at the WTO while reinforcing its ETS to align with global carbon pricing.

China is expanding carbon credits. The above-explained actions show a global push to regulate emissions. However, price volatility and economic concerns remain challenges. As carbon prices rise and regulations tighten, businesses must adapt to remain competitive. Lastly, the effectiveness of carbon markets in reducing emissions will be closely monitored.

• READ MORE: China’s Renewable Energy Boom: A Record-Breaking Shift or Still Chained to Coal?

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