The Science Based Targets initiative (SBTi) has released a draft Power Sector Net-Zero Standard to guide companies in setting near- and long-term climate targets, with the aim of achieving net-zero greenhouse gas (GHG) emissions by 2050. The standard is open for public consultation until November 3, 2025.

Designed to replace SBTi’s 2020 Quick Start Guide for Electric Utilities, the draft applies to companies generating at least 5% of annual revenue from electricity or whose power-related emissions make up at least 5% of their GHG inventory (or exceed 10,000 tons CO₂e). It covers activities such as low-carbon and fossil-based power generation, transmission, distribution, storage, energy trade, and retail.

SBTi emphasized that the power sector accounts for about 40% of global energy-related emissions, making rapid decarbonization both urgent and strategic. The new framework also aligns with the revised Corporate Net-Zero Standard (Version 2), currently under pilot testing, and can connect with criteria from SBTi’s Financial Institution Net-Zero Standard where relevant.

Key updates include:

· Classification of emissions by activity: generation (Scope 1), transmission/distribution (Scope 2 + SF₆), storage (Scope 2), and trade/retail (Scope 3).

· Exclusion of non-electricity energy carriers (e.g., gas, hydrogen, heat), equipment manufacturing, and captive generation (covered under broader corporate standards).

· Alignment with global climate goals to limit warming to 1.5°C.

SBTi is seeking stakeholder feedback to finalize the framework, noting the sector’s role as both a major emitter and an enabler of economy-wide decarbonization.

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