When discussing efforts to combat climate change, two terms frequently come up: carbon neutrality and net zero. While often used interchangeably, they have distinct meanings in the context of sustainability and climate action. Both refer to balancing the amount of greenhouse gases emitted and removed from the atmosphere, ultimately aiming to reduce our overall impact on global warming.
What is Carbon Neutrality?
Carbon neutrality is achieved when the amount of CO₂ (carbon dioxide) a company or organization has emitted into the atmosphere is balanced out. This balance is reached when an equivalent amount of CO₂ is either removed from the atmosphere or prevented from being emitted elsewhere through carbon offset projects or technologies.
Becoming carbon neutral means taking responsibility for the CO₂ emissions created and making up for them. It typically involves first reducing carbon emissions as much as possible and then compensating for the remaining, unavoidable CO₂, often by purchasing carbon credits from projects that remove or avoid CO₂. This is often done by purchasing carbon credits that support projects such as reforestation, renewable energy, or carbon capture technologies.
What is Net Zero?
Net zero means achieving a balance where total greenhouse gas (GHG) emissions released into the atmosphere are equal to the amount of GHGs removed. Net zero goes beyond just carbon dioxide and includes all greenhouse gases that affect the climate, such as methane (CH₄), nitrous oxide (N₂O), and fluorinated gases. It requires drastically cutting emissions across all areas of operation and the entire value chain, including emissions from suppliers, customers, and transportation.
Net zero is typically a longer-term goal that requires a strategic plan aligned with science-based targets to achieve significant emissions reductions over time. Reaching net-zero emissions by 2050 is the target set by the Paris Agreement to limit global warming to 1.5°C and avoid the most serious effects of climate change.
Key Differences Between Carbon Neutrality and Net Zero
| Attribute | Carbon neutrality | Net zero |
| Greenhouse gases covered | CO₂ only | All GHGs (CO₂, CH₄, N₂O, F‑gases) |
| Emissions scope | Typically Scope 1 & 2 (direct operations & purchased energy) | Scope 1, 2 & 3 (full value‑chain, including upstream/downstream activities) |
| Primary Approach | Immediate offsets to balance remaining emissions | Deep decarbonization first; offsets/removals only for unavoidable residual emissions |
| Time frame | Short‑ to medium‑term goal; practical “first step” | Long‑term ambition: systemic transformation over many years |
| Ambition Level | Moderate: establishes baseline credibility | High: requires a comprehensive strategy, innovation, and sustained commitment |
| Common Framework | GHG Protocol’s Corporate Standard; CarbonNeutral® Certification | Science-Based Targets Initiative (SBTi) Net‑Zero Standard; GHG Protocol Value‑Chain (Scope 3) Standard |
Achieving both carbon neutrality and net zero requires genuine efforts to measure emissions, set reduction targets, implement changes for greater efficiency and renewable energy use, and strategically use carbon offsets or removal projects to balance unavoidable emissions. These efforts are essential steps towards creating a healthier planet.
Click here for a guide on carbon accounting.