Why The Science-Based Targets Initiative Are Turning To Carbon Removals

Net-zero isn’t just a goal—it’s a deadline. Yet, too many companies treat it like a distant target, banking on future carbon removals instead of acting now. The problem? Delay makes solutions harder, costs higher, and climate risks more severe. Carbon removals must be integrated into corporate strategies today, not as a last-minute escape plan.

The Science Based Targets initiative (SBTi) has been setting the gold standard for corporate climate action, and now it’s evolving its approach. The old model—removals at the finish line—isn’t enough. The new push? Interim targets that force businesses to scale removals alongside deep emissions cuts.

For too long, businesses have treated carbon removals like a “later” problem. But removals aren’t magic. Direct air capture remains costly, currently ranging from $600 to $1,200 per ton of CO2 removed, with only a handful of operational plants worldwide. Even natural solutions, like reforestation, take years to deliver and require massive land areas—roughly 900 million hectares globally by 2050—to be effective.

Companies must commit to measurable progress on removals by 2030, not just 2050. The shift from vague long-term promises to near-term action is essential. Businesses that fail to invest now will find themselves scrambling for limited, expensive solutions down the road.

This also matters for credibility. Investors, regulators, and customers are growing more skeptical of companies that promise distant net-zero targets without showing concrete steps toward them. Greenwashing accusations are rising, and firms that can’t demonstrate real, measurable climate progress will face increasing scrutiny.

The role of carbon removal is no longer just about climate responsibility—it’s about financial viability. Long-term institutional investors, including pension funds and asset managers, are making carbon removal table stakes for capital access. Investors managing trillions in assets are increasingly tying funding decisions to clear, accountable net-zero pathways, with carbon removals playing a central role.

Without interim targets for removals, companies may find themselves shut out from capital markets as investors demand credible climate action. Institutional investors controlling $1.5 trillion in assets have issued a warning—asset managers must intensify climate action or risk losing their backing. Companies that fail to integrate removals risk losing access to long-term capital and seeing valuation discounts due to perceived climate risk.