The SBTi launches second public consultation on updated draft Power Sector Net-Zero Standard

The updated draft reflects feedback received during the first public consultation, additional research and input from the Expert Working Group. Once finalized, the Power Standard will enable companies in the power sector to set science-based targets aligned with what is needed to reach global net-zero by 2050 at the latest.

As the largest source of energy-related CO₂ emissions globally, the power sector plays a central role in achieving global climate goals and underpins wider economy decarbonization. The updated draft Standard provides sector-specific requirements to support credible climate action and the transition to low-emission power grids. The proposed revisions are intended to make science-based target setting and implementation more practical and actionable for power sector companies—reflecting how businesses operate across the sector—while maintaining the scientific rigor and ambition that underpin SBTi Standards.

The updated draft includes revisions across several areas, including:

• Alignment with the Corporate Net-Zero Standard V2.0, including a clearer structure and guidance on how the two Standards work together.
• Greater clarity on the activities and emissions covered by the Standard, including separate treatment of electricity transmission and distribution, clarification on the treatment of emissions from heat and power generation, and the exclusion of electricity trading activities.
• Updated performance metrics, including a revised definition of low-carbon power generation based on emissions intensity, and distinction between technical and non-technical losses for transmission and distribution activities.
• Refined target-setting approaches, including updated options for scope 1 near-term targets for power generation and scope 3 target setting for electricity retailers.
• Updated pathways based on the International Energy Agency's World Energy Outlook 2024 Net Zero Emissions Scenario, with region-specific pathways to support target setting.
• Removal of biomass sustainability requirements, which are now addressed through the Corporate Net-Zero Standard V2.0.

The draft Power Standard has been developed to work alongside the Corporate Net-Zero Standard V2.0. The Corporate Net-Zero Standard V2.0 establishes the cross-sector requirements applicable to all companies, while the Power Standard provides the additional sector-specific criteria for companies with power sector activities. Where the Power Standard modifies or supersedes Corporate Net-Zero Standard V2.0 requirements for specific activities or emissions sources, companies will also have to follow the Power Sector Standard.

Public consultation

The second public consultation is open from July 15 to August 31, 2026 (11:59 PM PT).

The SBTi welcomes feedback from anyone with an interest in the power sector’s transition to net-zero. Feedback is particularly encouraged on:

• The activities and emissions covered by the Power Standard and its applicability.
• How the Corporate Net-Zero Standard V2.0 and the Power Standard work together, including the clarity of the overall framework.
• The proposed metrics used to determine base-year performance.
• The proposed approach for setting near-term targets for power generation activities, particularly the asset decarbonization plan.
• Proposed metrics and targets for other value chain activities, including electricity technical losses in transmission and distribution and low-emissions electricity targets for retail activities.
• The proposed approach for electricity retailers to set alignment targets that increase the share of low-carbon electricity purchased and sold to end-users.

Respondents can complete the full consultation survey or provide feedback only on the sections most relevant to their expertise.

Alongside the consultation process, the SBTi will conduct a pilot with participating companies to test the draft Standard using real-world data. Insights from both the consultation and pilot will inform further refinement before the Standard is submitted for approval by the Technical Council and adoption by the Board of Trustees in accordance with the SBTi's Standard Operating Procedure for the Development of Standards.

While the Power Sector Net-Zero Standard is being finalized, companies should continue using the SBTi's Quick Start Guide for Electric Utilities to develop science-based targets. Companies that set targets using the Quick Start Guide will be well positioned to transition to the final Power Sector Net-Zero Standard once it becomes operational.