POWER SECTOR

The power sector plays a key role in decarbonizing the global economy. Companies in this sector are encouraged to set science-based targets today using the Quick Start Guide for Electric Utilities. Building on this guidance, we are developing a more comprehensive Power Sector Net-Zero Standard.

Developing a target-setting standard for companies in the power sector

The SBTi recently held a second publication consultation to gather feedback on its draft Power Sector Net-Zero Standard. Thank you to the 120 stakeholders that responded to the consultation. Stakeholder engagement is critical to developing standards that are fit for purpose, ambitious, and practical to implement.

The SBTi’s Power Team is now reviewing all stakeholder feedback, and will publish a final version of the Power Standard no earlier than Q4 2026. To learn more about the project, read the SBTi Power Sector Standard Terms of Reference.

Respond to the Power Standard public consultation

Take action today

As the Power Standard develops, companies should continue to use SBTi’s current guidance to set science-based targets. Companies that set targets using the Quick Start Guide for Electric Utilities today will be well positioned to adopt the final Power Standard, and will join the more than 11,000 companies with science-based targets that are benefiting from long-term competitive advantages, Get started today at SBTi Services.

The SBTi published minor revisions to this guide in September 2026. The changes were to reflect the new SBTi Services target validation process through the Validation Portal, updated references to the Corporate Net-Zero Standard V1.3, and a new reference to Criteria Assessment Indicators. This revision did not introduce new requirements or modify the criteria that companies need to follow to set targets for power activities.

Why take action?

The power sector has a unique opportunity to lead the net-zero transformation. As the largest source of global energy-related CO2 emissions–nearly 40%–and increasingly exposed to climate risks, resulting in threats to critical infrastructure and generation capacity, rapid decarbonization is both urgent and strategic. At the same time, the sector’s role as an enabler of decarbonization across other industries positions it for long-term growth in a carbon-constrained economy.

Electricity is relied upon by economies worldwide. As other industries accelerate decarbonization through electrification, demand for clean power will continue to grow. This makes the sector both a cornerstone of the global net-zero transition and a priority for ambitious climate action.

START YOUR TARGET SETTING PROCESS

How do power companies set emissions reduction targets?

The SBTi's wholly-owned subsidiary, SBTi Services, checks and validates the science-based targets of corporates, financial institutions, and small and medium-sized enterprises (SMEs).

By validating your targets with SBTi Services you will:

Demonstrate that your climate goals are robust and credible to investors and customers.
Ensure your targets for reducing emissions are aligned with the latest climate science.
Gain reassurance that your goals will remain relevant in the near- and long-term through re-validation by SBTi Services following mandatory target recalculation.

So what are you waiting for? Visit the SBTi Services website to get started today!

Project participants

This project is being developed by the SBTi in adherence with the Standard Operating Procedure for Development of SBTi Standards, and with support of Mott MacDonald, as technical partner for the first consultation draft. The process includes two public consultations, pilot testing, review and approval by the Technical Council and formal adoption by the Board of Trustees.

Stakeholder involvement is possible via the following groups:

Expert Advisory Group (EAG): Composed of technical experts from corporates, finance, academia, research, government, non-profit and multilateral organizations, interested in setting science-based targets and contributing to the project execution. The SBTi Power Standard EAG consists of the following individuals:

Luisa Barros - The Global Energy Alliance for People and Planet (GEAPP)
Rémi Bussac - EDF Group
Cristian Carraretto - European Bank for Reconstruction and Development (EBRD)
Simone Cenci - University College London
Steven Clarke - Ceres
Clare Connolly - Eversource Energy
Duncan Downes - Pictet Asset Management
Ihab Elmassry - The International Finance Corporation (IFC)
Omonigho Erigha - Persistent Energy Capital
Patrick Falwell - Green Strategies
Lígia Fernandes - EDP, S.A.
Adiéliton Freitas - CEMIG (Companhia Energética de Minas Gerais)
Dan Gardiner - IIGCC
Svend Hansen - Ørsted
Letitia Jentel - South African Institute of International Affairs (SAIIA)
Lena Kovaleva - N/A
Kit Fong Law - CLP Holdings
Celine Le Goazigo - World Business Council for Sustainable Development (WBCSD)
Sabrina Meddahi - GreenYellow
Colin Meehan - WWF US
Raul Miranda - Ember
Monica Oviedo - Iberdrola
Amaro Pereira - Federal University of Rio de Janeiro
Brendan Pierpont - Energy Innovation, LLC
Tomas Qvickström - Fortum (Nordic and Poland)
Jonathan Rea - RMI
Pierre-Alain Sebrecht - Reclaim Finance
Laurent Segalen - Megawatt-X
Alex Sutton - SSE plc
Kae Takase - Renewable Energy Institute
Balasubramanian Viswanathan - Sustainable Energy for All (SEforALL)
Belinda Wade - The University of Queensland
Yanxiang (Shawn) Wang - PwC

Note that the composition of the EAG may change over time and this list will be updated accordingly. EAG members volunteer in a personal capacity to provide technical advice over the duration of the project. While their expertise helps guide the development process, final content decisions rests solely with the SBTi. As a result, the final output does not necessarily represent or imply endorsement by individual EAG members or their employers.

Public consultation: The first public consultation on the draft Power Sector Net-Zero Standard took place from September to November, 2025. A second public consultation took place from July 15 to September 7, 2026.

Pilot test: Companies in power generation, transmission and distribution, storage, trade, and retail activities were invited to participate in a pilot test of the draft Power Sector Net-Zero Standard. Selected companies have been notified, and the pilot began in parallel with the second public consultation. It will conclude at the end of September 2026. Further information regarding the pilot’s objectives, structure, timeline, and selection criteria are outlined in the Terms of Reference.

Development process

Project launch: The Power Sector Project started in 2019 with expert consultations, webinars and stakeholder feedback to ensure alignment with the latest science. In 2020, with support from CDP, we launched the Quick Start Guide for Electric Utilities, providing companies with a resource to set science-based targets in line with sector-specific requirements. Now, we are revising these resources to develop a Power Sector Net-Zero Standard.
Project updates and call for experts: In May 2024, we published the Project Terms of Reference, outlining our plans to update our current guidance into a Power Standard. At the same time we called for experts to apply to be part of the EAG. In July 2024, we issued a Request for Proposals for consultancy support, and in September 2024, we convened the Power Sector EAG.
Research and drafting: The first and second drafts of the Power Standard were developed through extensive research, stakeholder engagement and input from the EAG.

Resources

Resources for power companies setting targets

Companies are also invited to familiarize themselves with the SBTi cross-sector resources, including the Getting Started Guide for Science-Based Target Setting, followed by reviewing the requirements of target setting in the Corporate Near-Term Criteria for near-term targets or the Corporate Net-Zero Standard Criteria for net-zero targets.

To understand these requirements in more depth, companies should also review the Standard Operating Procedure for the Validation of SBTi Targets, use the Corporate Near-Term Tool and the Corporate Net-Zero Tool to develop targets, and use the SBTi Services Criteria Assessment Indicators (CAI) to ensure their science-based targets submissions are in line with the SBTi Criteria, the Guide for Electric Utilities and the GHG Protocol Accounting Standards.

The Power Standard development project

Second public consultation

Pilot testing application