What is the difference between ‘Net Zero’ and ‘Carbon Neutral’?
A common confusion
Carbon Neutral vs. Net Zero: What's the Difference?
"Carbon Neutral" and "Net Zero" are often used interchangeably, but in carbon accounting, they mean different things. Both involve balancing emitted carbon with carbon removed from the atmosphere—but the approach and commitment are distinct.
What is Net Zero?
Net Zero means reducing greenhouse gas emissions to nearly zero (at least 90% reduction) and balancing the remaining emissions with carbon removal. Achieving Net Zero requires deep, systemic changes like moving away from fossil fuels and adopting renewable energy. This isn't a quick fix—it's about transforming how we operate.
Bottom line: Net Zero demands structural change and sustained effort.
What is Carbon Neutral?
To be Carbon Neutral, a company can simply offset its emissions by purchasing carbon credits equal to the emissions produced.
The shift is from using carbon data solely for buying offsets to focusing on actual reductions. While supporting carbon projects is beneficial, the key question is: How can the business reduce its own emissions?
Moving Forward
- Start carbon accounting properly to establish a credible baseline and track reductions.
- Engage with suppliers to understand and reduce their emissions, creating a ripple effect through the supply chain.
- Invest in real reductions within the business before relying on offsets.
For most companies, reaching Net Zero involves a commitment to long-term action and collaboration. It’s a journey, but a necessary one if we’re serious about reducing our impact on the climate.