SBTi Updates Development Plans for Oil and Gas, Chemicals, and Power Standards

The Science Based Targets initiative published updated Terms of Reference in December 2024 for three high-impact sector standard projects: oil and gas, chemicals, and power. The updates set out revised milestones, including a draft Oil and Gas Standard for public consultation in early 2025 and final Chemicals Criteria expected in Q3 2025.

SBTi's updated plans prioritise three sectors with the greatest potential to drive global decarbonisation. For oil and gas, which accounts for a substantial share of the 85 percent of global CO2 emissions attributed to fossil fuel combustion and industrial processes, the next major milestone is a draft standard for public consultation in early 2025—the first sectoral standard of its kind. The Chemicals Criteria, covering the third-highest industrial emitter globally, entered a second public consultation open until 10 January 2025 and is targeted for final release in Q3 2025. The Power Sector Standard's first public consultation draft was targeted for Q2 2025.

The three sectors collectively shape the emissions profile of virtually every other industry. The chemicals sector relies on fossil fuel feedstocks for nearly 95 percent of manufactured products, while the power sector's decarbonisation is a prerequisite for emissions reductions in transport, buildings, and industry. For India—a major producer and consumer in all three sectors—credible science-based pathways are increasingly important as domestic regulation evolves and global investors scrutinise supply chain emissions more intensively.

Each project is supported by expert advisory groups comprising representatives from business, civil society, and academia. SBTi is also developing parallel standards for financial institutions, automotive, and apparel, and has emphasised interoperability across its suite to enable a smooth target-setting experience for companies operating across sectors. All timelines are described as tentative and subject to adjustment based on stakeholder feedback and operational factors.

Key figure — Fossil fuel combustion and industrial processes account for 85% of global CO2 emissions