The Power Sector and SBTi 2.0: From Ambition to Execution
The Science Based Targets initiative (SBTi) has released its draft Power Sector Net-Zero Standard. For electricity generators, distributors, storage providers, and retailers, the implications are profound.
Unlike earlier frameworks, this draft places less emphasis on long-term ambition and more on credible, measurable, near-term execution. Companies will be required to demonstrate progress on a five-year cycle, backed by transparent data and clear transition strategies.
What’s Changing in the Power Sector Standard
The draft guidance introduces a number of structural shifts that fundamentally alter how companies approach climate strategy:
Fossil Fuel Exit Plans: Publicly disclosed strategies with five-year milestones, and restrictions on new investments in unabated fossil fuel capacity.
Retirement Timelines: Coal by 2030 in OECD countries (2040 elsewhere). Oil and gas assets by 2035 in OECD (2040 non-OECD), with narrow exceptions.
Certified Biomass: 100% certified sustainable sources required by 2030.
Sector-Specific Methodologies: Tailored approaches that align with the Corporate Net-Zero Standard V2, while accounting for the power sector’s pivotal role in enabling economy-wide decarbonization.
Why It Matters for Business Strategy
The power sector contributes nearly 40% of global energy-related emissions, making it both a major emitter and a critical enabler of decarbonization in other industries.
SBTi 2.0 raises the bar in three critical ways:
Disclosure becomes accountability: Companies must not only set targets but also prove progress.
Financing becomes conditional: Investor and regulator confidence will increasingly hinge on transparent roadmaps.
Leadership becomes differentiation: Organizations that act decisively will shape markets, attract capital, and build long-term resilience.
For more context on the broader evolution of SBTi standards, see our earlier article: SBTi Target Setting 2.0: What Enterprises Need to Know Now.
How Sustaira Accelerates the Transition
Meeting these new requirements demands more than compliance—it requires an integrated, data-driven approach to strategy, operations, and reporting. Sustaira’s modular sustainability platform enables that transformation:
Carbon Forecaster → credible baselines and forward-looking emissions projections
Projects & KPI Tracker → dynamic, measurable target-setting across regions and units
Sustainability Planner → cost-effective scenario analysis to guide investment and operational decisions
Carbon Visualizer → flexible dashboards for executives, investors, and teams
Carbon Accounting → granular forecasting and AI-powered modeling beyond spreadsheets
By combining rigor, flexibility, and strategic insight, Sustaira helps organizations turn SBTi 2.0 from a compliance requirement into a competitive advantage.
Take a Tour of Sustaira
SBTi Sustainability Launchpad
Executive Webinar: Mastering the Journey
The session explore how to:
Build credible emissions baselines
Align targets with business growth
Standardize and connect data across systems
Engage stakeholders inside and outside the organization
The draft Power Sector Net-Zero Standard marks a turning point. Timelines are now tighter, disclosure requirements sharper, and the expectations of investors and regulators higher.
Enterprises that act early and embed these changes into core strategy will not only ensure compliance but also strengthen resilience, competitiveness, and long-term value creation.
With Sustaira, organizations can bridge the gap between target-setting and measurable execution—ensuring that climate action delivers both regulatory compliance and business advantage.
