For the last few years, the corporate climate world has been shaped by a powerful mantra:

Reduce first. Remove later, maybe.

And to be clear: that principle still stands. Deep value-chain decarbonisation remains the core of credible net-zero strategy. But something meaningful has shifted.

With the latest draft of its Corporate Net-Zero Standard, the Science Based Targets initiative (SBTi) has further emphasised carbon credits under a new concept; out with “Beyond Value Chain Mitigation” and in with:

Ongoing Emissions Responsibility

This isn’t a reversal. It’s an evolution.

It signals that companies must not only decarbonise fast but also take responsibility for the emissions that remain along the way.

And especially for sectors like logistics, transport, industrials, and manufacturing, where full decarbonisation takes time and infrastructure, this marks the start of a more realistic, more ambitious, and more responsible approach to climate action.

Why carbon credits were out, and why they’re back

Let’s rewind.

SBTi, like others in the climate ecosystem, pushed hard against casual offsetting. Too often, credits were used as a shortcut to avoid real emissions cuts and too often carbon credits didn’t deliver real-world impact. So SBTi drew a firm line:

• Cut emissions inside your value chain
• Use removals only for final residuals at net-zero

That stance accelerated genuine decarbonisation. But it also created an unintended vacuum:

Most companies simply paused on climate investment until their decarbonisation pathways caught up. But, there is no net zero in the future without scaling carbon removal today.

With the Ongoing Emissions Responsibility (OER) framework, SBTi is now addressing the middle ground:

Act now: reduce, and also contribute to climate solutions today.

This closes the “wait and see” loophole. It brings accountability forward instead of sitting at the finish line. It scales much needed supply. And importantly, it doesn’t weaken standards. It strengthens them by adding another layer of responsibility.

Introducing “Ongoing Emissions Responsibility”

SBTi now offers two recognition tiers for companies who take responsibility for ongoing emissions alongside reductions:

1. Recognised

For companies beginning structured, credible contributions.

They must:

• Put an internal carbon price in place (>$20/tCO₂e recommended)
• Address a starting share of >1% of ongoing emissions (Scopes 1–3)
• Use high-quality credits as eligible pathways
• Provide transparent disclosure and assurance

This isn’t a badge for symbolic action, it’s a meaningful entry point.

2. Leadership

For companies stepping into climate leadership territory.

They must:

• Apply a higher internal carbon price (>$80/tCO₂e and rising)
• Address a much larger portion >40% of ongoing emissions
• Use high-quality ex-post mitigation outcomes (i.e. high-quality credits) as a material part of their approach
• Maintain the same rigorous reporting and assurance

As a result, corporates can generate meaningful positive impact in a rigorous and scalable fashion, and get recognised for it.

Why the carbon-pricing requirement matters

This is the quiet revolution in the update. Internal carbon pricing means:

• Emissions become a financial variable, not a moral one
• Climate action budgets scale with emissions reality
• CFOs enter the sustainability conversation
• Boards can’t treat climate as soft policy
• "Cheap offsets" as a strategy is dead

It accelerates real decarbonisation and further professionalises climate responsibility.

What this means for business

This shift gives companies something they’ve needed for a long time: a science-aligned way to reduce emissions and invest in climate solutions today.

It means:

• You can no longer delay climate finance until “after decarbonisation”
• Carbon credits aren’t a loophole, they’re a priced, verified responsibility tool
• Corporate climate maturity = reductions and contributions

For logistics-heavy companies especially — where infrastructure change takes time — this is a pragmatic and ambitious unlock.

It’s not “offsetting vs reduction.” It’s both.

Carbon credits aren’t back as a shortcut. They’re back as a commitment.

1. Reduce everything you can.
2. Price the emissions you can’t (yet).
3. Contribute to high-quality climate solutions now.

This is what serious climate action looks like in a hard-to-abate real world. Not perfection. Not passivity. Progress, with accountability, transparency, and financial credibility.

To learn about how Lune evaluates carbon projects to ensure high-integrity, read our guide.