The Shift to Carbon Removals: Why Companies Can't Afford to Wait

Net-zero isn't just an aspirational goal anymore—it's a deadline. Yet, many companies have treated carbon removals as a problem for the future.

The Science Based Targets initiative (SBTi) is leading this shift by pushing companies to set interim carbon removal targets instead of postponing them until 2050. Instead of pushing removals to 2050, businesses must now set interim targets to scale removals alongside deep emissions cuts.

For too long, carbon removals have been seen as a last resort. But delaying action only makes solutions more expensive and climate risks more severe. The shift toward interim targets means businesses must commit to measurable progress on removals by 2030—not just at the finish line.

Why Carbon Removals Can't Wait

Many companies have relied on vague long-term promises without clear steps to back them up. That's no longer enough. Investors, regulators, and customers are demanding real action.

• Greenwashing accusations are on the rise.
  
• Regulatory scrutiny is tightening worldwide.
  
• Institutional investors managing $1.5 trillion are warning companies: step up climate action or risk losing financial backing.
  

That's why businesses must integrate carbon removals now, before demand drives costs even higher.

What's Changing in Climate Standards?

SBTi is revamping its Corporate Net-Zero Standard in 2025, launching public consultations and working groups. These changes will make corporate climate goals more credible by:

Interim Removal Targets

A structured roadmap will require businesses to scale removals immediately rather than waiting decades.

Stronger Scope 3 Strategies

With 70-90% of a company's emissions coming from its supply chain, businesses must take accountability beyond direct operations.

Enhanced Transparency

Companies must show real progress, not just distant net-zero commitments.

Interoperability

The updated framework will align with other global climate standards for a more cohesive approach.

These updates mark a fundamental shift in corporate climate strategy. It's no longer enough to cut emissions and assume removals will be available in the future. Companies need a phased, actionable plan to integrate removals today.

The Rising Cost of Delay

Companies that fail to act now will face severe financial consequences. High-quality removals—those that are durable, scalable, and verifiable—will become even more expensive as demand soars. Those who delay investment may find themselves competing for limited resources at much higher costs.

A race is already underway in the carbon removals sector. Direct air capture firms are expanding, with costs projected to drop to $100-$200 per ton by 2050—but only if early investments continue.

Natural solutions like reforestation require land, which is already in high demand for agriculture and urban development. Some estimates suggest 20% of global cropland may be needed for large-scale reforestation efforts.

Regulatory pressure is also increasing. The European Union's Corporate Sustainability Reporting Directive now requires over 50,000 companies to disclose detailed climate data.

Switzerland has implemented corporate milestone targets for removals, and Canada has introduced the world's first government-backed direct air capture protocol. Businesses that wait will find themselves unprepared for these emerging regulations.

>> In Other News: CarbonQuest Closes $20 Million Funding Round to Expand Distributed Carbon Capture Technology

Corporate Leaders Must Act Now

SBTi's upcoming consultation is a rare opportunity for businesses to help shape a standard that is both ambitious and achievable. Companies that engage now will stay ahead of regulatory trends and gain early access to the best removal projects.

As early adopters, these companies will also:

• Secure long-term partnerships with removals providers.
  
• Strengthen investor confidence with transparent, science-backed climate strategies.
  
• Position themselves as leaders in corporate sustainability.
  

"Leading companies believe that it is crucial for the EU to reduce its emissions by at least 55% by 2030 and to be net-zero by 2050," said María Mendiluce, CEO of the We Mean Business coalition.

Holly Buck, an associate professor at the University of Buffalo, also stressed the urgency of scaling carbon removals: "We must establish scale for carbon removals between now and 2050. If we do not, and we do not scale the other approaches to carbon dioxide reduction, most of the scenarios that we have for limiting warming to 1.5°C aren't going to be achievable."

Businesses that make early investments will also drive critical innovation and cost reductions. Just as early commitments to renewable energy helped bring down the cost of wind and solar power—solar prices fell 89% from 2009 to 2019, and wind power costs dropped 70%—carbon removal costs will only decline with greater investment and scaling.

The Time for Action is Now

The corporate approach to net-zero can no longer be passive. Carbon removals aren't a future concern—they are an immediate responsibility. Companies that act now will gain a competitive edge, while those who hesitate will find themselves at a financial disadvantage.

The shift toward interim removal targets is clear: delaying action only increases costs, risks, and investor skepticism. Businesses must take real, measurable steps today to ensure a viable, sustainable future.

Net-zero isn't a distant target anymore. It's an urgent deadline, and the time to act is now.