A Turning Point for Corporate Renewables Strategy and Achieving Net-Zero? SBTi’s New Net-Zero Standard signals a major boost for CPPAs
In March 2025, the Science Based Targets initiative (SBTi) released a consultation draft of its updated Corporate Net-Zero Standard. SBTi is a global body that guides companies in setting science-based emissions reduction targets, with corporations using its Net-Zero Standard to ensure and validate alignment. While the language of the draft may remain technical and some terms are yet to be clearly defined, the message to the market is clear: the path to net-zero is about to become much steeper and significantly more impactful. At the core of the draft is a clear signal that certificate-based procurement strategies alone may no longer be sufficient. Particularly under scrutiny is meeting the standard with unbundled Guarantees of Origin (GoOs) – a low-cost, lower-impact strategy many corporates have historically used to claim renewable electricity usage. According to SBTi, this approach “fails in driving renewable energy deployment, undermining the credibility and effectiveness of scope 2 target setting.” In other words: additionality matters. And claims without such substance may no longer cut it.
What this could mean for the market: The SBTi is currently holding a public consultation on the draft, open for feedback until June 2025. The final version is expected by the end of the year, with implementation set for 2026. If the new framework is finalised as expected, companies aiming to align with SBTi’s Net-Zero Standard will soon need to show real-world climate impact, starting with how they source their energy.
- A wave of new demand: Companies that have historically relied on unbundled GoOs may now need to pivot quickly. Pressure could applied to secure long-term, traceable renewable power through Corporate Power Purchase Agreements (CPPAs), particularly those that underpin new greenfield renewable energy capacity. For these corporates, executing CPPAs may no longer be a “nice to have,” but will become a core pillar of net-zero compliance.
- Time-matching as the next frontier: The draft encourages companies to match renewable energy consumption with generation “where possible” in both time and location. This signals a growing emphasis on granular, 24/7 carbon-free energy solutions. While this won’t become mandatory overnight, it strengthens the business case for integrating energy storage hybrid structures into CPPAs. This is a positive shift for renewable procurement. For years, the market has faced a credibility gap between companies’ climate commitments and the real-world impact of their emissions reductions. This shift could address longstanding concerns around greenwashing and signals a move towards more credible climate action. In parallel to the SBTi’s Net-Zero Standard revision, the Greenhouse Gas (GHG) Protocol is also undertaking a significant update of its Corporate Standards, which could have similar implications. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol forms the global foundation for corporate greenhouse gas accounting. It underpins the methodologies used by the SBTi to support companies in setting and validating ambitious, science-aligned emissions reduction targets. Some of the proposals being considered would tighten rules around market-based Scope 2 emissions reporting by strengthening additionality requirements. This includes encouraging time- and location-matched energy sourcing to better reflect actual electricity usage and grid carbon intensity. The updated standards are expected to be finalised by 2026 and could align with the direction set by the SBTi. Where Asper fits in For investors in greenfield development like Asper, this shift is firmly aligned with our mission to “Build the New”. Our focus has always been on developing high-quality, greenfield renewable energy projects across Europe. CPPAs are a core component of this model. We structure contracts that ensure projects deliver real impact, creating long-term partnerships that benefit both developers and corporate offtakers. With our greenfield wind projects, we have supported large multinationals to directly access new-build, additional renewable power, reducing their exposure to volatile markets and enabling them to meet tightening sustainability standards in a proactive, credible, and scalable way. In short, it’s exactly the kind of solution the new SBTi framework is steering the market towards. A Step in the Right Direction While the details of the Net-Zero Standard are still under consultation, the direction of travel is clear: credible net-zero strategies must deliver additionality and real-world impact. The SBTi’s new framework reflects that real decarbonisation demands investment in greenfield projects with tangible additionality. For institutional investors backing greenfield development, and for corporates looking to demonstrate climate leadership, this is a moment of alignment. It’s not just about ticking boxes anymore. It’s about delivering infrastructure that’s critical to Asper’s mission. Authors: Jiska Klein & Thomas McNicholas
