Power sector responsible for nearly 40% of global energy-related emissions
Draft Standard aims to align companies with net-zero pathways by 2050
Stakeholder input will help ensure targets are both practical and credible
The Science Based Targets initiative (SBTi) has opened consultation on its draft Power Sector Net-Zero Standard, inviting stakeholders across industry, finance, and policy to help shape the framework that will define how the sector transitions to net-zero.
With the power sector accounting for almost 40% of global energy-related emissions, the SBTi highlights the urgent need for decarbonization to reduce climate risk exposure and safeguard critical infrastructure. At the same time, the sector is uniquely positioned to drive emissions cuts across industries by supplying low-emission electricity.
The draft Standard is designed to provide companies with near- and long-term science-based targets that are practical, credible, and consistent with a net-zero trajectory by 2050. It builds on the first consultation draft of the Corporate Net-Zero Standard V2 to ensure alignment across the SBTi’s frameworks.
Applicable to companies in generation, transmission, distribution, storage, trading, and retail, the Standard will replace the SBTi’s Quick Start Guide for Electric Utilities. It introduces updated, sector-specific criteria that reflect the scale and complexity of power sector operations.
RELATED ARTICLE: SBTi Invites Companies to Pilot Draft Net-Zero Standard V2
“The SBTi invites feedback from all stakeholders to help shape a Standard that is practical for businesses, scientifically robust, and credible—helping accelerate climate action in line with net-zero goals,” the organization stated.
By providing a common benchmark, the draft Power Standard aims to reduce transition risks for companies while enabling them to seize growth opportunities in an economy where demand for low-emission electricity continues to rise.
Follow ESG News on LinkedIn
