SBTi Updates Plans for Oil and Gas, Chemicals, Power

The Science Based Targets initiative (SBTi) released updated plans for three sectoral projects: oil and gas, chemicals and power. 

By prioritizing sectors with the greatest potential to drive decarbonization, the SBTi seeks to equip businesses in high-emitting industries with science-aligned net-zero pathways, according to a statement.

Oil and gas: Fossil fuel combustion and industrial processes account for 85% of global CO2 emissions and 64% of total GHG gas emissions. SBTi’s Oil and Gas Standard will demonstrate how companies in this industry can decarbonize their business models, retain and attract financing and lead the energy transition.

The updated Terms of Reference for SBTi’s Oil and Gas Standard outlines key milestones in this development, which will be the first of its kind. The next major step is the release of a draft for public consultation early 2025, providing stakeholders with an opportunity to help shape the Standard.

Chemicals: Nearly all (95% of) manufactured products rely on the chemicals sector. As such, it is the third highest industrial emitter worldwide, contributing to almost every sector of the global economy, including health care, agriculture, construction and renewable energy systems and the plastics value chain.

The SBTi is developing Chemicals Sector Criteria to help decarbonize this sector. The project is currently undergoing a second round of public consultation and calling for chemicals sector companies to pilot the criteria. 

Power: The power sector is the largest source of CO2 emissions globally. Global electricity demand is forecast to grow by around 4% in 2024, up from 2.5% in 2023.

The updated Power Sector Standard Terms of Reference details the project plan. The next major milestone will be the release of the first public consultation draft in Q2 2025.

At the same time, the SBTi is updating its Corporate Net-Zero Standard and is focused on ensuring interoperability between its resources so they can easily be used together to enable a smooth target-setting process for businesses.