SBTi Opens Pilot Applications for New Power Sector Net Zero Standard

The Science Based Targets initiative (SBTi) has launched the pilot phase for its draft Power Sector Net-Zero Standard, inviting power generation, transmission, distribution, storage, trading and retail companies to test the proposed framework before the final draft is published. Applications to participate in the pilot are open until 16 January 2026.

The draft Power Sector Net-Zero Standard, released in September 2025, is set to replace SBTi's current Quick Start Guide for Electric Utilities with a broader standard covering an expanded scope of power sector activities and emissions. A key new criterion requires power sector companies to publicly disclose a plan to transition away from unabated fossil fuel power generation, including interim actions with maximum five-year milestones up to the net-zero year. The draft also prohibits companies from investing in new unabated fossil fuel capacity. The new standard has been developed in alignment with SBTi's draft Corporate Net-Zero Standard V2.

The SBTi's new power sector standard has direct relevance for Indian utilities and independent power producers, as nearly 12,000 companies have set or committed to science-based targets globally and the power sector is central to national decarbonisation trajectories. Indian power companies including thermal utilities with significant coal assets will face pressure to demonstrate credible fossil fuel phase-out plans if they seek or renew SBTi validation under the new standard. The requirement for maximum five-year milestones introduces a level of granularity in transition planning that goes significantly beyond most existing corporate climate commitments in the sector.

SBTi said key objectives of the pilot include ensuring the standard is robust, clear and practical, identifying implementation challenges and testing the feasibility of validating companies against the requirements. Feedback from the consultation and pilot will inform the next draft of the standard before final publication. The power sector currently accounts for more than 75% of total global greenhouse gas emissions, making credible net-zero standards for the sector a critical component of global climate ambition. Companies interested in participating in the pilot must apply by 16 January 2026.

Key figure — Nearly 12,000 companies with SBTi commitments globally