Act 3 – SBTI – companies that are one step ahead

Act III: Companies that are one step ahead

May 21, 2026

Act I: France lays the groundwork. Act II: Europe legislates. Act III: the denouement: companies that do not merely comply with regulations, but anticipate what lies ahead. And what lies ahead is a deadline set for 2035, for which forests are the key.

 

The SBTi: a voluntary commitment that is becoming the norm


The Science Based Targets initiative (SBTi) is now the international benchmark for corporate climate commitments. More than 10,000 organisations worldwide — including 88% of the CAC 40 — have set emissions reduction targets aligned with a 1.5°C warming scenario. The targets cover Scopes 1, 2 and 3, and are verified and published.

 

The current version (V1.3) remains valid until the end of 2027. Version 2.0 will become mandatory for all new targets from January 2028. It introduces a mechanism that will permanently change the role of forests in companies’ climate strategies.


 

2035: the milestone that forward-thinking companies are already preparing for


Version 2.0 of the SBTi introduces Ongoing Emissions Responsibility (OER). From 2035 onwards, the most committed companies will need to offset 40% of their ongoing emissions through verified carbon removal or reduction projects, extending beyond their value chain. And climate science is clear on the role of forests in this mix: in 2035, 83% of these removals could still come from short-term sinks such as forests — this share will fall to just 59% by 2050, when the projects planted today will be at full sequestration capacity.

 

From 2026, companies financing high-quality credits — including LBC — can achieve SBTi v2 “Leader” status, concrete recognition of a commitment going beyond the minimum requirement.

 

Today, LBC credits fall under the SBTi framework as BVCM (Beyond Value Chain Mitigation): a voluntary contribution beyond the value chain. Solid, but this is only the beginning. Forestry projects launched today will be in full active carbon sequestration by 2035–2050, precisely when net-zero obligations become binding.

 

Companies that are building a portfolio of LBC forestry credits now are positioning themselves for the obligations of tomorrow.

 

The shortage of high-quality forest credits has already begun


Looking ahead to 2035 is not just about preparing for a regulatory deadline. It is also about responding to market dynamics that are already evident today.

 

According to the MSCI report from September 2025, the share of high-integrity credits in annual withdrawals rose from 25% in 2022 to over 35% in the first half of 2025. Buyers are now incorporating minimum quality thresholds into their procurement policies, and for the first time, demand is outstripping supply in these segments. Long-cycle projects, such as afforestation and reforestation, cannot keep pace.

 

The direct consequence: the price gap between high- and low-integrity credits has doubled in a year. And mature companies are switching en masse to multi-year forward purchase contracts to secure their supply — transactions of this type for nature-based solutions more than doubled between 2024 and 2025.

 

Forest LBC credits combine precisely the attributes that define high integrity: a state framework, additionality verified by an independent auditor, a public register, and a French territorial basis. To wait is to risk not being able to find the desired volumes tomorrow — or having to pay more for them.

 

 

📌 Key points

  • The SBTi brings together more than 10,000 companies committed to 1.5°C targets — including 88% of the CAC 40. Version 2.0 comes into effect in January 2028.
  • LBC credits are recognised as BVCMs under the SBTi framework: a verified voluntary contribution extending beyond the value chain.
  • From 2035, forest carbon removals will be eligible for mandatory OERs — forest LBC can cover up to 83% of the removals mix in 2035, and a further 59% in 2050.
  • Projects launched today will be in full carbon sequestration by 2035–2050: investing in LBC now means building tomorrow’s carbon portfolio.
  • The shortage of high-integrity forest credits is worsening: withdrawals have risen from 25% to 35% since 2022, the price gap between high and low integrity credits has doubled in a year, and multi-year contracts are on the rise.

     

The saga comes to an end — for now. The regulatory framework continues to evolve: CRCF, the final version of SBTi V2, new LBC methods… More chapters are yet to be written. Stay tuned