SBTi opens second consultation on updated automotive net-zero standard

The Science Based Targets initiative opened its second public consultation on February 3, 2026 for the updated Automotive Sector Net-Zero Standard, open until March 22, 2026. Indian automakers and parts suppliers face a stricter zero-emission vehicle definition and a dual target-setting pathway aligning sector criteria with the Corporate Net-Zero Standard V2.

On February 3, 2026, the SBTi opened its second public consultation for the updated draft Automotive Sector Net-Zero Standard, following a 2025 pilot testing period. The consultation remains open until March 22, 2026. The draft refines focus on Scope 3, Category 11 (use of sold products) emissions, introducing a streamlined well-to-wheel methodology. Companies receive a dual pathway: absolute emission reductions in Category 11 or a Zero-Emission Vehicle sales-share metric, while maintaining a 1.5°C trajectory alignment.

The standard affects automakers and auto parts manufacturers. A stricter Zero-Emission Vehicle definition replaces broader low-emission categorisations to eliminate ambiguity in climate claims. For parts manufacturers, the draft emphasises cutting Scope 1 and 2 emissions from material sourcing and manufacturing, and encourages transparency on the percentage of parts sold supporting zero-emission platforms. Once finalised, the standard supersedes the automotive sections of the SBTi Land Transport Guidance (2024), reshaping how the sector accounts for vehicle-use emissions.

Indian automakers and suppliers should review the draft and submit input before the March 22, 2026 deadline. The standard mandates that Category A companies (large corporations) publish detailed climate transition plans within 12 months of target validation. Firms should assess which dual-pathway option fits their regional market realities and prepare data systems for the well-to-wheel methodology. The automotive sector accounts for over 20% of man-made greenhouse gas emissions, making early alignment material for investor confidence.

Key figure — Consultation deadline: March 22, 2026