SBTi launches pilot to shape the power sector’s Net-Zero Standard

The Science Based Targets initiative (SBTi) is today launching a pilot of its draft Power Sector Net-Zero Standard and is inviting companies across power generation, transmission and distribution, storage, trading, and retail to take part.

The draft Standard provides a practical and credible framework for companies across the sector to set near- and long-term science-based targets aligned with what is needed to reach net-zero by 2050 at the latest. It will help companies to manage transition risks, build resilience, and capture growth opportunities as global demand for low-emission electricity accelerates.

Replacing the SBTi’s Quick Start Guide for Electric Utilities, the draft Standard expands its scope to cover a broader set of activities and emission sources across the sector’s value chain. It introduces updated criteria tailored to the industry’s unique emissions and operational realities.

Electricity underpins day to day life and the global economy—from powering homes and industry to enabling digital technologies and innovation. Yet, energy is currently responsible for more than 75% of total global greenhouse gas emissions. As renewable energy deployment accelerates and decarbonization becomes increasingly urgent, the power sector is central to the global transition to net-zero. Establishing a robust, science-based standard is essential for ensuring this transition is both credible and effective.

Pilot testing is a critical step in the SBTi’s standard development process to ensure the final Standard is practical for businesses, while scientifically robust and credible—helping accelerate climate action in line with global net-zero goals. Participating companies will have a unique opportunity to shape the future of science-based target-setting for the power industry, demonstrate credible climate leadership to customers, investors, and regulators, and gain early insights into methodologies that will guide future target validation.

Applications are open until January 16, 2026 (11:59 PM PT). Companies interested in taking part should complete the application form by the deadline. Additional information on the pilot’s objectives, structure, timeline, and selection criteria is available in the Terms of Reference.