Understanding the Key Differences Between Carbon Neutral and Net Zero
As the urgency of climate change intensifies, the private sector plays a pivotal role in driving decarbonization and emissions reductions. Many businesses and organizations are now adopting more sustainable practices to respond to the climate crisis, committing to initiatives like the UNFCCC’s Race to Zero Campaign and the Net Zero Initiative. The 2015 Paris Agreement set a global framework to limit global warming to well below 2°C, with the target of achieving carbon neutrality by 2050. But how do companies fit into this mission?
Net zero targets demand innovation, while carbon neutrality requires commitment.
In 2018, the IPCC’s Special Report helped clarify the path forward, emphasizing the need to reach net-zero emissions by mid-century to avoid catastrophic outcomes. Global carbon neutrality and the wider net-zero emissions goal have sparked widespread commitments among businesses, but there are some important nuances between terms like “carbon neutrality,” “net-zero,” and “carbon negative” that need to be understood.
01. Carbon Neutral vs Net Zero CO2
The IPCC recognizes “carbon neutrality” and “net-zero” as interchangeable terms when referring to carbon dioxide (CO2). Carbon neutrality generally describes a balance between human-made emissions and CO2 removal processes, but it’s crucial to note that it is a global concept, not one that can be achieved in isolation by an organization. In essence, organizations contribute to global carbon neutrality, but they do not achieve it independently.
For businesses to align with the global 1.5°C warming limit, they must aim for net-zero emissions by 2050, as outlined in the IPCC’s report. This requires significant effort and cannot be achieved through carbon offsetting alone. It involves a detailed process of measuring emissions, understanding their sources, and taking proactive steps to reduce them.
02. The Three Emissions Scopes
Before moving forward with any emission reduction or offsetting strategy, companies must measure their greenhouse gas (GHG) emissions. The Greenhouse Gas Protocol outlines three emission scopes:
- Scope 1: Direct emissions from activities like on-site fuel combustion or company fleet vehicles.
- Scope 2: Indirect emissions from purchased energy (e.g., electricity and heating).
- Scope 3: Indirect emissions from the entire value chain, including both upstream and downstream activities.
Scope 3 emissions are typically the largest category but are more challenging to quantify. Businesses working toward global carbon neutrality must ensure their net-zero strategy addresses all three emission scopes.
03. Crafting a Comprehensive Decarbonization Strategy
A comprehensive decarbonization strategy involves three main steps:
Eliminating emissions: This involves reducing emissions within the entire value chain (scopes 1, 2, and 3) through actions such as transitioning to renewable energy sources, reducing fuel consumption, and rethinking production methods. This is referred to as abatement.
Neutralizing emissions: Some residual emissions may remain even after reduction efforts. These can be neutralized by removing CO2 from the atmosphere using technologies such as Carbon Dioxide Removal (CDR) or restoring natural carbon sinks.
Compensating: For any remaining emissions that cannot be eliminated or neutralized, businesses can purchase high-quality carbon credits from projects that either capture or prevent CO2 emissions, ideally with additional social and environmental benefits for local communities.
While neutralization and compensation are important, they should never replace efforts to reduce emissions directly.
04. Net Zero GHG Emissions
Net-zero GHG emissions extend beyond carbon dioxide and encompass all greenhouse gases, including methane, nitrous oxide, and halocarbons. These gases, while less discussed, have a far more significant impact on global warming than CO2. Achieving net-zero GHG emissions may take longer than carbon neutrality, with some experts suggesting a target date of 2063, given current emission reduction efforts.
The strategy for achieving net-zero GHG emissions mirrors that for carbon neutrality but includes the added complexity of addressing a wider range of gases. This requires enhanced measurement and mitigation strategies to manage the full spectrum of emissions.
05. Carbon Negative or Net Negative Emissions
In certain cases, companies or countries may choose to go beyond carbon neutrality or net-zero emissions by actively removing more CO2 from the atmosphere than they emit. This approach is often referred to as “carbon negative” or “climate positive.” It is a commendable goal, but it is essential to differentiate between the standard definitions of net-zero and carbon negative, as the latter is not always in alignment with the IPCC’s guidelines.
06. The Role of Technological Solutions
Technologies like Carbon Capture and Storage (CCS) play an important role in helping to remove CO2 from the atmosphere, but they are not a silver bullet. Methods like Bioenergy with Carbon Capture and Storage (BECCS) or Direct Air Capture and Storage (DACCS) are promising but come with their own challenges, including cost and scalability. Although such technologies are still in development, they offer hope for accelerating the path to net-zero emissions.
Conclusion
Achieving net-zero emissions requires more than just a simple pledge—it demands a concerted, transparent, and strategic effort to reduce and neutralize emissions, aligned with the 1.5°C global target. Understanding and accurately applying the terms “carbon neutrality” and “net-zero” is crucial for organizations to avoid misrepresentation and ensure the credibility of their climate commitments.
As businesses and governments continue their journey toward a more sustainable future, they must invest in both reducing emissions and developing technologies to capture and store the emissions that are still being released into the atmosphere. Through a combination of proactive policies, innovative solutions, and international cooperation, we can move closer to achieving global carbon neutrality and mitigating the worst impacts of climate change.
Contact us at info@andoka.com for expert guidance on navigating the differences between carbon neutrality and net zero. Or explore our comprehensive guide to learn how these concepts can shape your sustainability goals and drive impactful climate action! 🌍