As the world grapples with the climate crisis, the term ‘carbon neutral’ has gained prominence across various sectors, from business to government policy. With rising global temperatures, driven primarily by greenhouse gas (GHG) emissions, achieving carbon neutrality has become a vital goal in efforts to limit global warming. Understanding what carbon neutrality truly means is essential, as it forms the cornerstone of many climate strategies.
We’ll explore the concept of carbon neutrality, how it differs from other climate terms, and what steps businesses can take to achieve it.
Definition of carbon neutral
Carbon neutrality refers to balancing the amount of carbon dioxide and other GHG emissions released into the atmosphere with an equivalent amount of carbon removal or offsetting. This means that while emissions may still be produced, they are compensated for through efforts such as carbon capture, reforestation, carbon offsetting, or purchasing carbon credits. The aim is to prevent a net increase in atmospheric GHG levels, thus mitigating the effects of climate change.
Achieving carbon neutrality doesn’t mean that no emissions are created; rather, it focuses on balancing them to prevent an overall increase in global emissions. Many entities across different sectors, from EU member states to corporations, are adopting carbon neutral strategies as part of broader efforts to combat climate change.
Differences Between Carbon Positive, Carbon Neutral, and Carbon Negative
Terms like ‘carbon positive,’ ‘carbon neutral,’ and ‘carbon negative’ have now become part of everyday discourse, as organizations and individuals seek ways to minimize their carbon emissions and overall environmental impact. But what do these terms mean, and how can entities work toward them?
Carbon Positive: Often confused with a positive environmental outcome, being carbon positive actually means a business or activity releases more carbon dioxide and other GHG emissions into the atmosphere than it removes or offsets. Companies, industries, or individuals who are carbon positive contribute to the increase of GHGs, exacerbating the problem of climate change. While this term is less common, some industries with heavy energy use, such as oil and gas or traditional manufacturing, may fall into this category.
Carbon Neutral: As explained earlier, carbon neutrality refers to balancing the GHG emissions an entity produces with equivalent measures that either remove carbon from the atmosphere or offset emissions through compensatory actions. Being carbon neutral doesn’t mean that no emissions are produced, but rather that the impact of these emissions is effectively nullified through reductions or offsets. A variety of strategies can help achieve this, including renewable energy investments, reforestation, and carbon credits.
Carbon Negative: In contrast to being carbon positive or neutral, a carbon negative organization or country goes beyond balancing their emissions and actively removes more carbon dioxide from the atmosphere than they emit. This typically involves heavy investment in carbon removal technologies and nature-based solutions like reforestation, and results in a net reduction of atmospheric CO2. Carbon sinks play a crucial role in this process by absorbing more carbon than they release, thus helping to mitigate climate change.
With growing international momentum behind climate action, carbon neutrality is increasingly seen as a baseline requirement, while carbon negativity is emerging as an aspirational goal for some forward-thinking businesses and nations.What are the main certifications for carbon neutrality?
To ensure transparency and credibility in achieving carbon neutrality, various certification schemes verify that businesses and organizations meet their carbon reduction and offset goals. Some of the most widely recognized certifications include:
PAS 2060 (British Standards Institution)
PAS 2060 is one of the leading certifications for demonstrating carbon neutrality. It requires entities to measure their carbon footprint, reduce emissions, and offset any remaining emissions through validated projects. Regular public reporting is also required to maintain transparency and accountability.
Carbon Trust Standard
The Carbon Trust Standard certifies organizations that actively reduce their GHG emissions and continue improving their sustainability performance. The certification is periodically reviewed, ensuring that certified companies are consistently working toward reducing their environmental impact.
Climate Neutral Certification
The Climate Neutral Certification requires companies to measure their carbon footprint across their entire operations and offset any emissions through verified carbon offset projects. Certified companies are also required to implement ongoing strategies to reduce emissions in future years.
B Corp Certification
Although B Corp Certification covers a wide range of ethical business practices, many certified businesses also commit to achieving carbon neutrality. This certification signals a company’s overall dedication to social and environmental responsibility.
How can businesses set a carbon neutral target?
Setting a carbon neutral target and achieving genuine emissions reductions is increasingly important for businesses that want to contribute to global efforts to reduce emissions. Here are key steps businesses can take:
Measure greenhouse gas emissions
The first step in setting a carbon neutral target is measuring the company’s carbon footprint. This includes accounting for both direct and indirect emissions across all operations and supply chains. Accurate measurement allows for a clear understanding of the baseline emissions and informs future reduction strategies.
Set science-based targets
Science-based targets provide companies with a clear framework for reducing emissions in line with global climate goals, such as limiting global warming to 1.5°C. These targets ensure that businesses are reducing emissions at a pace necessary to meet international climate commitments, such as the Paris Agreement.
Prioritize emission reductions
Businesses should prioritize emission reductions over carbon offsets by investing in renewable energy, improving energy efficiency, and using more sustainable materials. Focusing on reducing emissions at the source is key to minimizing the overall impact on the environment.
Carbon offsetting for unavoidable emissions
After reducing emissions, companies can offset any remaining emissions by investing in carbon offset projects. Artificial carbon sinks, although currently limited in efficiency, play a role in these efforts by attempting to remove carbon from the atmosphere. These projects may include reforestation, renewable energy investments, or carbon capture initiatives that remove carbon from the atmosphere.
Communicate progress
It’s crucial for businesses to report their progress toward carbon neutrality to stakeholders. Transparent communication builds trust with consumers and investors, and it can inspire other businesses to take action.
What is the difference between carbon neutrality and net zero?
While carbon neutrality and net zero emissions are often used interchangeably, they are distinct concepts.
Carbon neutrality
Carbon neutrality focuses on balancing emissions with offsets to ensure that an entity’s net contribution to atmospheric GHG levels is zero. This may involve continuing to emit carbon but compensating for it through verified carbon offset projects like reforestation or carbon credits.
Net zero
Net zero goes beyond balancing emissions and requires reducing emissions as close to zero as possible before using carbon removal or offsets. Achieving global net zero emissions is crucial for meeting the urgent climate goals established by the Paris Climate Agreement, which emphasizes significant reductions in greenhouse gas emissions and balancing these emissions over time. Achieving net zero involves significantly cutting emissions across all sectors, leaving minimal emissions to be offset. Net zero is therefore a more ambitious target, as it emphasizes minimizing emissions to the greatest extent possible.
In practice, while carbon neutrality is an essential step for addressing climate change, net zero represents a more comprehensive approach, requiring deeper reductions in emissions across different sectors such as the power sector, transport, and agriculture.
Achieving carbon neutrality – A significant milestone
Carbon neutrality is a critical component in the global effort to tackle climate change and limit global warming. It involves balancing GHG emissions with efforts to remove or offset carbon, creating a net-zero impact on the atmosphere. While achieving carbon neutrality is a significant milestone, moving toward net zero is the ultimate goal for many organizations and governments, especially in sectors like energy, transport, and manufacturing.
As countries like EU member states set their sights on climate neutrality and net zero, businesses and individuals alike must take meaningful action to reduce emissions. By investing in emission reduction technologies, prioritizing renewable energy, and committing to transparent progress, the global community can make significant strides toward a more sustainable future.
