For the biochar carbon removal industry, June 2026 marks a date worth remembering. SBTi released its Corporate Net-Zero Standard V2.0. For the first time, its Ongoing Emissions Responsibility (OER) framework writes carbon removal into a corporate compliance framework. This is not an optional ESG add-on. Instead, it is an institutional requirement with a timeline, a price benchmark, and integrity thresholds. As a result, the pool of potential buyers for biochar carbon removal credits is expanding to thousands of companies bound by mandatory requirements. At the same time, the OER framework brings both opportunities and challenges to the biochar carbon removal industry.
Companies will keep generating GHG emissions even as they progress along their decarbonization pathway. So far, these Ongoing Emissions, temporarily unavoidable, have lacked an institutional mechanism for being addressed. Meanwhile, the practice of purchasing carbon credits to “offset” emissions has long faced greenwashing scrutiny, with unclear rules and a weak scientific basis.
Corporate Net-Zero Standard V2.0 responds through the OER framework. Companies must now take on additional responsibility for their ongoing emissions through quantifiable Climate Contributions. Specifically, the framework unfolds in three phases:
Importantly, SBTi has also made clear that the OER framework will not replace existing carbon credit and climate contribution frameworks such as Puro.earth and Isometric. Instead, it will establish minimum integrity standards and develop a recognition mechanism for third-party frameworks.
The OER recognition program is voluntary until 2035. Companies select one of three recognition levels — Engaged, Advanced, or Leadership — distinguished by the share of ongoing emissions covered and the scale of climate contributions required. Recognition is assessed at the end of each five-year target cycle and publicly displayed on the SBTi Dashboard.
| Recognition Level | Coverage | Contribution Budget | Verified Mitigation Outcomes |
|---|---|---|---|
| Engaged | 1% of total ongoing emissions | Covered emissions × $/tCO₂e (no mandated price; $20 recommended) | Optional — equal volume (tCO₂e) to covered emissions |
| Advanced | 10% of total ongoing emissions (incl. 100% of Scope 1+2) | Covered emissions × $20/tCO₂e | Optional — equal volume (tCO₂e) to covered emissions |
| Leadership (Category A) | 100% of total ongoing emissions | Covered emissions × $80/tCO₂e | Mandatory — equal volume (tCO₂e) to covered emissions |
| Leadership (Category B) | 10% of total ongoing emissions (incl. 100% of Scope 1+2) | Covered emissions × $80/tCO₂e | Mandatory — equal volume (tCO₂e) to covered emissions |
| Term | Definition |
|---|---|
| Recognition Level | The three tiers of the OER recognition program — Engaged, Advanced, and Leadership — distinguished by the share of ongoing emissions covered and the climate contribution requirements. Companies self-select their level; recognition is assessed and awarded at the end of each target cycle. |
| Company Category | SBTi classifies all companies into Category A or Category B based on size.
This classification determines coverage requirements under the Leadership level and the boundary of mandatory obligations post-2035. |
| Contribution Budget | A financial commitment calculated by applying a specified price per tCO₂e to the volume of emissions covered under a selected recognition level, to be used to support verified mitigation outcomes and other eligible climate actions. |
| Verified Mitigation Outcomes | Independently third-party verified climate results generated outside a company’s value chain, measured in tCO₂e. Eligible activities include:
Biochar carbon removal fall within this category. |
While the OER recognition program remains voluntary until 2035, V2.0 sets out a clear mandatory trajectory for what comes after. For biochar CDR project developers, this is the section that matters most — it defines who must buy carbon removals, how much, and critically, what qualifies.
Take a company with total ongoing emissions of 1,000,000 tCO₂e in 2035, of which 80% (800,000 tCO₂e) are attributable to long-lived GHGs:
Of the 10,000 tCO₂e purchased in 2035, at least 800 must qualify as long-lived removals. The remaining 9,200 tCO₂e may be short-lived or long-lived removals, or a combination. Both thresholds increase linearly each year.
High-quality biochar is produced at sufficient pyrolysis temperature with low H/Corg ratios. It has a carbon storage half-life broadly recognized at hundreds to thousands of years, placing it within the definition of long-lived removal. This distinguishes biochar from living biomass carbon sinks such as forests and soil organic carbon. They depend on photosynthesis to maintain sequestration and carry significantly higher physical reversal risks.
SBTi has not yet made an explicit durability classification for biochar in V2.0. A forthcoming Call for Evidence will examine whether shorter-lived carbon removals can deliver climate-equivalent permanence through contractual, financial, or stewardship mechanisms. The outcome will determine whether biochar credits can count toward the long-lived removal quota, directly shaping biochar’s addressable market and credit positioning within corporate removal portfolios.
| Term | Definition |
|---|---|
| Long-lived GHGs | Greenhouse gases with long atmospheric lifetimes, including CO₂, N₂O, and certain halogenated compounds. Their warming effect persists for decades to centuries after emission. |
| Residual Emissions | Emissions remaining at the net-zero target year after all feasible mitigation measures have been implemented. |
| Long-lived Removal | Carbon removal capable of retaining carbon for centuries to millennia (IPCC, 2022). |
| Short-lived Removal | Carbon removal capable of retaining carbon for decades to centuries (IPCC, 2022). |
| Net-Zero Target Year | The year a company commits to reducing emissions to residual levels and neutralizing all remaining emissions with carbon removals. No later than 2050. |
V2.0 reshapes the carbon removal market from two directions simultaneously — creating structured demand on the buyer side while raising the quality bar on the supply side. The implications differ depending on where you sit.
SBTi V2.0 redefines carbon removal from an ESG option into a core compliance requirement. With the upcoming Call for Evidence on durability, operational metrics like H/Corg ratios, pyrolysis parameters, and dMRV tracking are no longer mere paperwork—they are high-value commercial assets. As corporate capital shifts toward the 2035 compliance horizon, high-integrity project developers will define the premium tier of the global market. Follow our LinkedIn to stay updated on critical biochar CDR policy developments and industry insights.