TL;DR: Version 4.0 of the CO₂ Performance Ladder requires long-term climate transition plans that are in line with net-zero by 2050, streamlines the certification process into three steps, and places more emphasis on lowering Scope 1, 2, and 3 emissions. It complies with global norms such as the CSRD and the Paris Agreement. Companies should start their transition plans early, involve experts, learn about the changes, and get ready for more challenging certification levels and tendering opportunities during the first six months.
Introduction
One of the most effective instruments for companies looking to control and lessen their carbon footprint is still the CO₂ Performance Ladder. The Ladder, which was created in the Netherlands, is a management system and certification scheme that helps organizations measure, manage, and reduce their carbon emissions. It works as both an internal tool to drive sustainability improvements and an external tool to gain advantages in tenders and contracts. Organizations are certified based on their ambition and performance across their own operations and supply chains. Originally developed for the infrastructure sector in the Netherlands, it is now used by businesses and governments across industries to accelerate climate action and demonstrate serious commitment to emissions reduction.
The system has been enhanced with Version 4.0 to satisfy modern climate expectations and conform to global norms.
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What's new in Version 4.0
The framework is improved by a number of significant changes introduced in Version 4.0:
Five levels are replaced by three certification steps
Three steps replace the previous five-level certification structure. This offers a more straightforward and goal-oriented route.
Greater emphasis on emissions from Scope 1, 2, and 3 emissions
Scope 1 (direct) and scope 2 (purchased energy) emissions were the main focus of Version 3.1. All three emission scopes, including the frequently disregarded Scope 3 (value chain emissions), must now be addressed by businesses. This increases the effect of CO₂ reduction efforts.
Step 1 requires an organization to work on short-term targets (up to 3 years) and its own energy consumption and emissions (scope 1 and scope 2)
Step 2 of CO₂ focuses on an organization’s value chain (scope 3). The focus is on an organization’s main activities and on the medium term (5 to 10 years)
Step 3 goes further, as the emphasis is on the long-term goal (up to 2050) of zero emissions for all scopes. It is also encouraged to look beyond the chain to emissions outside the scopes, such as avoided emissions or emissions from biomass combustion
Organization-wide integration of CO₂ reduction
CO₂ reduction is now expected to be embedded across the entire organization, from leadership to procurement and operations.
Climate Transition Plans for Higher Steps
A climate transition plan that is in line with net-zero emissions by 2050 is required of organisations that want to achieve Step 2 or Step 3. These strategies need to be solid, grounded in science, and incorporated into the main business plan.
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Why was it updated?
The need to better reflect current climate realities and conform to international frameworks prompted the switch to Version 4.0:
Conformity to Global Standards: the revised ladder now aligns with with the Paris Agreement, the Corporate Sustainability Reporting Directive (CSRD), and other key international frameworks, ensuring consistency and credibility.
Supporting the Climate Transition: a core feature is the introduction of climate transition planning to ensure businesses contribute to reaching net-zero by 2050. The Ladder is now positioned as a compliance framework, and as a guide for meaningful climate action.
Collective approach to climate action: Version 4.0 emphasizes the need for collaboration across supply chains, industries, and sectors. It's a clear call to work together and engage stakeholders in the journey to lower emissions.
Timeline and transition period
Version 4.0 was officially released in January 2025, with a two-year transition period to give everyone (from certificate holders to certification bodies and contracting authorities) time to prepare.
Until 2027, companies can still be audited under either version (although not preferrable), but after that, only Version 4.0 will be recognized for certification.
Tips for businesses
Transitioning to Version 4.0 isn’t just a box-ticking exercise—it requires real commitment and forward-thinking strategy. Here’s what businesses will need to do:
Step 1 (level 3 of the old framework) is the first step, but moving up is complicated.
Begin with internal analysis during the first six months: get your teams on board and align your strategy.
Demonstrate CO₂ reduction across the whole organization, not just a single department or project.
Develop a climate transition plan that outlines how your company will reach net-zero emissions by 2050.
Involve a consultant that can help you interpret the new rules and develop a transition strategy tailored to your business. Regreener can be your partner in staying ahead with your transition.
Choose the right moment for re-certification. Plan your audit strategically: wait until you're ready to meet the new expectations, especially if aiming for higher steps. We advise to put extra effort and certify with the new version, as it is more compliant to global norms. This also saves the hassle of having to recertify again soon
Conclusion
The shift to Version 4.0 of the CO₂ Performance Ladder is more than a procedural update; it’s a signal that the climate conversation has matured. Today, businesses are expected not just to track emissions, but to actively contribute to the broader transition toward a low-carbon economy.
With the right preparation, this version offers a valuable opportunity to strengthen your climate strategy, align with international standards, and position your organization as a leader in sustainable business. The roadmap of the new CO₂ Performance Ladder is a clear pathway towards more future-proof organizations.
