SBTi's Beyond Value Chain Mitigation (BVCM) and Version 2.0 draft: A guide to your carbon credit strategy
SBTi updates beyond value chain mitigation, shifting corporate carbon credit strategies toward permanent removals.
Navigating the new SBTi guidelines can be complex. Discover how the Corporate Net-Zero Standard 2.0 draft and BVCM framework impact your carbon offsetting strategy and how to prepare.
As companies aim to meet their credible climate targets, reporting standards tighten. While everyone is outlining their long-term Net Zero goals, we see a clear trend in the market. The focus is increasingly shifting to Beyond Value Chain Mitigation (BVCM), but as science and trends evolve, so do the guidelines.
In the end of 2025 SBTi introduced their consultation draft of the Corporate Net-Zero Standard (CNZS) Version 2.0. For sustainability managers looking to incorporate carbon credits into their strategies, in this new version new terminology, new recognition tiers, and new requirements are being introduced. But how do you make sense of it all?
In this blog, we explain what these frameworks mean for your carbon offsetting strategy and how to maintain strong quality standards in your portfolio.
What is Beyond Value Chain Mitigation (BVCM)?
Historically, companies focused only on their own footprint. Beyond Value Chain Mitigation (BVCM) refers to mitigation actions or investments that fall outside a company's value chain. This includes purchasing high-quality carbon credits to avoid, reduce, or remove greenhouse gas (GHG) emissions from the atmosphere.
The SBTi emphasizes that efforts to deliver BVCM must not replace or delay corporate value chain decarbonization in line with a 1.5°C pathway. Instead, BVCM is a mechanism to go above and beyond your science-based targets, taking responsibility for the unabated emissions your company continues to release while transitioning to net-zero.
The shift to taking responsibility for ongoing emissions in version 2.0 of the SBTi
In the new draft, the SBTi reframes BVCM as "Taking Responsibility for Ongoing Emissions". Rather than just a general recommendation, the SBTi is introducing a structured, optional recognition program for companies taking early action through carbon credits and supplementary mitigation.
Companies can earn one of two recognition labels:
- Recognized: You take responsibility for at least 1% of your ongoing scopes 1-3 emissions over the target timeframe through ex-post mitigation outcomes (verified carbon credits) or by applying a carbon price.
- Leadership: You fully internalize the cost of your emissions. This means applying a carbon price of at least $80/tCO2e to 100% of your ongoing emissions. At least 40% of this budget must be used to purchase verified, ex-post mitigation outcomes (carbon credits), while the rest can fund wider climate action.
3 key changes to your carbon credit strategy under the updated SBTi
If you are evaluating your next carbon credit purchase, the draft outlines the direction these requirements are likely to take.
1. Transitioning from avoidance to long-lived carbon removals
Currently, companies use a mix of avoidance and removal credits. However, the draft makes it clear that at your net-zero target year, 100% of your residual emissions must be neutralized using carbon dioxide removals, following The Oxford Offsetting Principles.
Furthermore, the SBTi states that a defined portion of these removals must be stored in "long-lived reservoirs" (capable of capturing carbon for centuries to millennia). The draft suggests that by 2050, at least 41% of your neutralization must come from these highly durable removals (like Direct Air Capture or Biochar).
2. The focus on high-integrity, ex-post outcomes
Buying cheap carbon credits without checking quality is no longer viable. To qualify for SBTi recognition, companies must secure ex-post mitigation outcomes. This means the underlying emission reduction or carbon removal has already taken place and has been independently verified.
The SBTi explicitly states that these credits must meet stronger integrity principles, ensuring additionality, permanence, and the avoidance of double-counting.
3. Alignment with VCMI claims
If your business objective for buying carbon credits includes making credible public claims, the SBTi's BVCM framework aligns perfectly with the Voluntary Carbon Market Integrity Initiative (VCMI).
For example, the SBTi suggests purchasing verified mitigation outcomes equal to at least 50% of your remaining Scope 1, 2, and 3 emissions. Doing so aligns your strategy with the VCMI Carbon Integrity Gold or Platinum claims, allowing you to transparently communicate your corporate climate leadership without risking greenwashing accusations.
How to determine your BVCM budget
How much should you invest in carbon credits? The SBTi report highlights two primary methods for sustainability managers to determine the scale of their pledge:
- The "ton-for-ton" method: You match a specific percentage of your unabated emissions with carbon credits. For example, buying credits equal to 20% or 50% of your annual footprint.
- The "money-for-ton" method: You apply an internal carbon price to your unabated emissions to generate a financial budget. This budget is then used to purchase a diverse portfolio of high-quality carbon credits.
Considerations when choosing your BVCM portfolio
When building your carbon credit portfolio, the SBTi recommends prioritizing projects that deliver measurable emissions reductions, support underfunded climate solutions, contribute to the Sustainable Development Goals (SDGs), and promote fair climate outcomes.
At Cawa, we know that keeping up with changing SBTi requirements and identifying credible projects can be challenging. Our platform provides direct access to carefully screened carbon projects that meet recognized quality standards and align with SBTi guidance.
As the SBTi updates the Corporate Net-Zero Standard and BVCM guidance, compliance requirements may continue to change. We closely monitor these regulatory and scientific developments, and we will keep you updated as new versions of these frameworks are officially published. If you have any questions about navigating the SBTi framework in general, or how these changes impact your specific strategy, our team is always here to help.
FAQs about SBTi and carbon offsetting
Can I use carbon credits to meet my near-term SBTi reduction targets?
No. The SBTi is very clear that carbon credits cannot be counted toward your internal value chain emission reduction targets (Scopes 1, 2, and 3). Instead, carbon credits should be used for Beyond Value Chain Mitigation (BVCM) to take responsibility for your ongoing, unabated emissions while you work toward your net-zero goals. When you reach your Net-Zero date you can use carbon removal credits to compensate for your last 10% unabated emissions.
Are carbon credits mandatory to get my SBTi targets validated?
Currently, purchasing carbon credits for BVCM is a strong recommendation rather than a strict requirement for target validation. However, this is shifting. The V2 draft outlines a timeline where taking responsibility for ongoing emissions will become mandatory for type A large companies starting in 2035. Furthermore, by your final net-zero target year, using carbon removal credits to neutralize 100% of your residual emissions is strictly required to claim net-zero status.
