SBTi Opens Applications for a Pilot of the Draft Power Sector Net-Zero Standard

SBTi has initiated pilot testing of draft materials for its Power Sector Net-Zero Standard. The published pilot documentation clarifies both the scope of the draft resources and the communication boundaries that separate testing from formal SBTi target validation.

On 4 December 2025, the Science Based Targets initiative (SBTi) published a call for companies to apply for a pilot that will test draft materials for its Power Sector Net-Zero Standard. The call is directed at organisations across the electricity value chain, including power generation, transmission and distribution, storage, trading, and retail. SBTi describes the pilot as a way to gather practical feedback on the draft Standard and its supporting resources, including a draft target-setting tool.

What Has Been Announced

SBTi states that the draft Standard is intended to enable power sector companies to set near- and long-term science-based targets aligned with reaching net-zero by 2050 at the latest. SBTi also indicates that the draft is designed to replace the Quick Start Guide for Electric Utilities and to broaden coverage across the electricity value chain, including power generation, transmission and distribution, storage, trading, and retail. On its power sector page, SBTi notes that the sector is increasingly exposed to climate risks that can threaten critical infrastructure and generation capacity.

What the Pilot Will Test

The Pilot Test Participant Terms of Reference describe the pilot as a practical test of the draft Standard and its supporting resources, focused on clarity, usability, and the feasibility of applying the proposed draft criteria within a future validation assessment. The consultation package referenced by SBTi includes the draft Standard, a draft Power Target-Setting Tool, and two synthesis reports, one on the Power Sector Pathway and one on Metrics and Methods, which underpin the proposed benchmarks, metrics, and target-setting approaches.

Deadline, Timetable, and Data Readiness

SBTi indicates that applications are open until 16 January 2026 at 11:59 PM PT, with the pilot expected to begin no earlier than Q1 2026. The Terms of Reference describe a six-week pilot commencing in March 2026 and set out an indicative sequence from participant selection in January 2026 through target development and submission in April and May 2026, followed by review and a final workshop in May 2026. For a target of moderate complexity, and assuming data preparation is complete, SBTi estimates 20 to 30 hours to complete target calculations, complete the target submission form, and engage with SBTi as needed. Participating companies are expected to have a comprehensive GHG inventory in accordance with the GHG Protocol prior to beginning the pilot test.

Guardrails for Disclosures and Participation

The Terms of Reference draw a clear boundary between pilot participation and the official SBTi target validation process that can lead to an approved target. The document states that participation in the pilot does not constitute official validation and does not result in an approved target. It also notes that pilot participants have an informative role only, with final decisions on technical resources taken through SBTi governance bodies, including the SBTi Technical Council and the Board of Trustees. The Terms of Reference include antitrust guidance for participant discussions and set constraints for public communications about the pilot, including restrictions on using the SBTi logo and on wording that could imply endorsement or validation. SBTi also notes that outputs from the pilot may be published in anonymised form.

Consultation Foundations Referenced by SBTi

The Power Sector Pathway synthesis report describes scenario inputs used to set sector benchmarks, including 1.5°C-consistent pathways and the IEA Net Zero Emissions scenario, and provides benchmark emissions intensity values for power generation, including 0.0645 tCO2/MWh in 2030 and 0.0010 tCO2/MWh in 2050. The Metrics and Methods synthesis report explains why SBTi proposes combining different metrics, including physical emissions intensity, absolute GHG emissions, and technology share. It also outlines three target-setting methods proposed for use in the power sector, namely the Sectoral Decarbonization Approach (SDA), Technology Share Convergence (TSC), and Linear Alignment Approach (LAA).

Reporting Takeaway

For organisations in the electricity value chain, the pilot signals a move from consultation into practical testing of an expanded sector standard and its implementation tool. For reporting and communications teams, the Terms of Reference provide the key boundary for external statements: participation should be described as testing draft materials and providing feedback, not as having targets validated through SBTi’s official process.