Carbon neutral versus net zero

Although both carbon neutral and net zero labels are used when discussing emissions reduction and climate change, they’re not interchangeable terms. Achieving net zero or carbon neutrality results in the same goal of removing harmful carbon and greenhouse gas (GHG) emissions from the atmosphere, but the type of emissions are different.  

In this article, we’ll outline the distinction between these claims and their impacts on the environment. 

Climate change — carbon neutral vs net zero

Discussions of emissions directly correlates with conversations surrounding climate change. Around the world, countries have implemented various climate change acts, directives and legislation to mitigate damaging anthropocentric impacts on the planet. 

Entering into force in 1994, the United Nations Framework Convention on Climate Change aims to prevent dangerous human interference with the climate system by stabilizing greenhouse gas concentrations. Also in the US, a National Climate Task Force has been developed to reduce greenhouse gas emissions (GHG) by 50-52% by 2030 and achieve net zero emissions by 2050.  

In the EU, the European Climate Law further establishes key policies in the European Green Deal (EDG) to achieve climate neutrality — in other words, achieving net zero greenhouse gas emissions — by 2050. The Law aims to reduce GHG emissions by 55% by 2030. Further directives on energy efficiency and renewable energy usage have also been implemented in the EU to control their usage to hit new targets by 2030. In addition, a Carbon Border Adjustment Mechanism tool will generate prices on carbon emission during the manufacturing of products entering the EU to encourage manufacturers to use less. 

On an international level, the Paris Agreement, adopted by 196 parties at the UN Climate Change Conference (COP21) in 2015 and entered into force in November 2016, is a legally binding treaty on climate change. The agreement aims to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels and to limit the temperature increase to 1.5°C above pre-industrial levels”. World leaders, however, have stressed the risks of crossing the 1.5°C threshold, potentially leading to more droughts, heatwaves and rainfall. This treaty ensures taking climate action is a global endeavor, not a siloed one. 

To protect the climate from global warming and reduce toxic emissions, global organizations need to achieve a balance in emissions. But what does this balance mean? And how do the terms carbon neutral and net zero come into play? The first step to knowing which term is applicable is by identifying which kind of GHG emissions you’re referring to. 

Greenhouse gas emissions

To differentiate between carbon neutral and net zero emissions, we need to determine exactly what GHG emissions are, beyond simply carbon dioxide emissions.  

According to the Intergovernmental Panel on Climate Change (IPCC), the UN’s body for reporting on the science of climate change, GHGs are “those gaseous constituents of the atmosphere, both natural and anthropogenic [or of human origin], that absorb and emit radiation at specific wavelengths within the spectrum of terrestrial radiation emitted by the Earth’s surface, the atmosphere itself, and by clouds. This property causes the greenhouse effect.” 

The primary GHGs are: 

• Water vapor (H2O) 

• Carbon dioxide (CO2) 

• Nitrous oxide (N2O) 

• Methane (CH4) 

• Ozone (O3) 

Carbon neutral

When businesses claim to be “carbon neutral” or are working actively towards that status, they’re employing sustainable strategies to remove the same amount of carbon dioxide as they’re emitting into the atmosphere. 

Carbon sinks, such as forests and oceans, naturally absorb and store more carbon than they emit. When companies invest in carbon sinks, they’re pursuing practices which maintain the health of our planet’s ecosystem and landscapes and promote carbon reduction and carbon removal. This is referred to as ‘offsetting’ where no more emissions are being put into the air than are taken out, maintaining a balanced carbon footprint. 

Achieving carbon neutrality not only protects our environment, but it also saves businesses money on operations and tax.  

Net zero

Similar in its goals but different in its scale, net zero refers to all greenhouse gases rather than just carbon dioxide. For a business to reach net zero status, their greenhouse gas emissions must equate to the same quantity of GHGs being removed from the atmosphere.  

In 2019, the UK became the first major economy to pass net zero emissions law, with a target of reaching net zero by 2050. Some methods detailed in the law to offset greenhouse gases include planting more trees (as our forests absorb carbon), using technology to capture and store carbon rather than allow its release, relying on renewable energy for electricity and transport, and reducing fossil fuels.  

Carbon neutral versus net zero

To summarize, both carbon neutral and net zero endeavors have the same aim: to remove harmful emissions from our atmosphere. Where carbon neutral strategies focus solely on balancing carbon dioxide emissions, net zero laws target all greenhouse gases and residual emissions to become climate neutral. 

When it comes to deciphering if your company is referring to carbon neutral or net zero, the answer depends on which gases you’re targeting in your emissions and carbon accounting. And while each is separate in its scale, carbon neutrality is considered a vital part of our net zero journey.