Market Summary:-

According to Research intelo, the Global Science Based Targets Net Zero market size was valued at $5.8 billion in 2024 and is projected to reach $24.7 billion by 2033, expanding at a CAGR of 17.6% during the forecast period of 2025–2033. The primary driver for this robust growth is the accelerating corporate and governmental commitment to climate action, with organizations across sectors striving to align their decarbonization strategies with the Paris Agreement’s climate objectives. This commitment is translating into a surge in demand for consulting services, software solutions, and verification tools that enable organizations to set, track, and achieve science-based net zero targets. As sustainability becomes an essential business imperative, the Science Based Targets Net Zero market is positioned for exponential expansion, driven by regulatory mandates, investor pressure, and heightened consumer awareness.

The global energy and power sector is undergoing one of the fastest transitions in its history. Governments, corporations, and investors are aligning around climate commitments  yet the real momentum is coming from the rise of Science Based Targets (SBTs) and the global push toward Net-Zero.
For energy-focused audiences, understanding this market shift is essential, as it is rapidly redefining investment priorities, corporate strategies, and technology adoption.

What Are Science Based Targets (SBTs)?

Science Based Targets are emission reduction goals set by companies to align with climate science and the Paris Agreement. These targets are validated by the Science Based Targets initiative (SBTi), ensuring that corporate commitments are not just ambitious  but scientifically credible.

Key Characteristics of SBTs

• Aligned with climate science: Based on pathways limiting global warming to 1.5°C.
• Cover full emissions scopes: From direct operations (Scope 1 and 2) to supply chains and value chains (Scope 3).
• Require transparent reporting: Companies must disclose progress every year.

For the energy and power sector, this framework helps standardize climate action in an industry responsible for roughly three-quarters of global emissions.

What Does “Net-Zero” Mean in Practice?

Net-Zero goes beyond reducing emissions  it requires neutralizing any remaining footprint through carbon removal solutions such as reforestation or direct air capture.
Under the SBTi framework, companies must:

1. Deeply cut emissions (90–95% by 2050).
2. Neutralize residual emissions with high-quality carbon removals.
3. Avoid over-reliance on offsets, ensuring most progress comes from real operational changes.

This approach pushes businesses to prioritize renewable energy, electrification, efficiency, and decarbonized supply chains.

The Rapidly Growing Net-Zero Market

The SBTi Net-Zero ecosystem has grown into a global market influencing policies, technologies, and financial flows. Energy and power companies, in particular, face rising expectations from regulators, customers, and investors.

1. Corporate Commitments Surging Worldwide

Thousands of companies  from utilities to heavy industry  are adopting SBTs. Many are shifting from voluntary sustainability efforts to strategic decarbonization plans that shape every part of their business.

Drivers Behind This Surge

• Investor pressure through ESG and climate-risk frameworks
• Consumer demand for low-carbon products
• Policy mandates like the EU Green Deal and U.S. IRA incentives
• Cost competitiveness of renewables

2. Technology Innovation Accelerating

The Net-Zero market is fueling rapid adoption of clean technologies. The energy and power industries are experiencing a wave of investment in:

Renewables & Electrification

• Solar and wind as primary decarbonization levers
• Battery storage for grid reliability
• Electrification of industrial processes

Low-Carbon Fuels

• Hydrogen (green and blue)
• Sustainable bioenergy
• Synthetic fuels for hard-to-abate sectors

Carbon Management

• Carbon capture, utilization, and storage (CCUS)
• Direct air capture technologies
• Nature-based carbon removals

3. Data, Reporting & Verification Becoming Essential

The Net-Zero market is not just about technology. Credibility is built on standardized data, transparent reporting, and third-party verification.

Companies now invest heavily in:

• Emissions monitoring systems
• Lifecycle analysis tools
• Digital platforms for carbon accounting
• Supply chain emissions tracking

For energy companies, accurate Scope 3 data  especially from fuel use  remains one of the biggest challenges.

Opportunities for the Energy & Power Sector

The shift toward science-aligned Net-Zero targets is not a threat; it is a major opportunity.

1. New Revenue Streams

Companies can create value through:

• Clean energy generation
• Green hydrogen production
• Energy efficiency services
• Carbon removal markets

2. Competitive Advantage

Early movers experience:

• Stronger brand trust
• Better investor perception
• Preferential access to green financing
• Strong customer loyalty

3. Long-Term Operational Resilience

Reducing emissions improves:

• Fuel cost stability
• Regulatory compliance
• Energy efficiency
• Overall business resilience

Challenges: What Companies Must Overcome

While the Net-Zero market is growing, several challenges remain:

• High upfront costs for clean energy technologies

• Limited availability of proven large-scale carbon removal

• Difficult supply-chain decarbonization, especially for global operations

• Need for specialized expertise in climate science and emissions reporting

Companies that successfully navigate these barriers will emerge as leaders in the energy transition.

Competitive Landscape

• Microsoft Corporation
• Apple Inc.
• Google LLC (Alphabet Inc.)
• Amazon.com, Inc.
• Unilever PLC
• Nestlé S.A.
• Coca-Cola Company
• PepsiCo, Inc.
• Siemens AG
• Schneider Electric SE
• IKEA Group
• Procter & Gamble Co.
• Johnson & Johnson
• Sony Corporation
• Walmart Inc.
• General Motors Company
• Ford Motor Company
• Danone S.A.
• L'Oréal S.A.

The Future of the SBTi Net-Zero Market

According to Research intelo, the Science Based Targets Net-Zero landscape will continue to evolve. Expect:

• Stricter credibility standards for offsets
• More sector-specific pathways, especially in power and heavy industry
• Greater global adoption, including emerging economies
• Integration of climate data into financial decision-making
• A stronger focus on absolute emissions reductions rather than intensity-based metrics

The energy and power sector will sit at the center of this transformation, providing the technologies and infrastructure needed for global decarbonization.

Source:- https://researchintelo.com/report/science-based-targets-net-zero-market