Explaining The Key Differences Between Net Zero and Carbon Neutral
Article Summary
In recent years, the terms "net zero" and "carbon neutral" have become major buzzwords in the world of sustainability. Both terms are commonplace and often used interchangeably however they have vastly different meanings and implications. In this article, we will highlight the key differences between net zero and carbon neutral so that you can be more informed and less susceptible to this common pitfall. To do this we will use descriptions provided by internationally recognised verification standards for sustainability, namely PAS2060 and SBTi.
What is Carbon Neutral?
Carbon neutral refers to the state of having sum total zero carbon emissions which is achieved primarily through carbon offsetting. Carbon offsetting is the practice of purchasing carbon credits which are qualified activity which reduce the CO2 in the atmosphere (e.g., reforestation and solar power installation). PAS 2060 describe the process of an entity being carbon neutral. To achieve this the company must have an initial baseline carbon assessment, followed by a second year of full carbon footprint and offsetting against all annual emissions. This then qualifies the entity as carbon neutral, however there is further reporting and offsetting required in the continuing years to retain carbon neutrality.
What is Net Zero?
To achieve net zero by SBTi standards, individuals, businesses, and governments are required to commit to a carbon reduction strategy which will limit average global temperature increased to below 1.5 °C. This is measured by sector specific guidance and approaches provided by SBTi. Carbon offsets are excluded from meeting these carbon reduction targets. The entity therefore must act upon planned carbon reduction initiatives and demonstrate the actual carbon reduction achieved through these targets.
What is the difference between net zero and carbon neutral?
While initially the terms net zero and carbon neutral may seem interchangeable, there are key differences. Net zero requires carbon reduction initiatives in place which reduces the amount of greenhouse gas emission directly released by the entity. However, carbon neutrality only requires a balance between measured emissions produced and emissions absorbed without any reduction requirements. In lay terms, net zero is a more comprehensive and ambitious goal for sustainability than carbon neutrality.