Net Zero vs. Carbon Neutral: What’s the Difference?

Jun 21, 2021

Categories:
Climate Change
Energy

Although the terms ‘net zero’ and ‘carbon neutral’ are often used interchangeably, they are actually different. We explain the difference and why the distinction of net zero vs carbon neutral matters.

Net zero vs carbon neutral

They sound very similar, so what is the difference between net zero and carbon neutral?

Carbon neutral is a term that refers to balancing carbon emissions out. This is done by “offsetting” carbon or removing it from the atmosphere in an equivalent amount to the amount that is being produced. Net zero carbon involves strategies for both removing and reducing overall carbon emissions.

Explaining carbon neutral

When an individual, organisation or other entity refers to themselves as carbon neutral, this means they are taking measures to “offset” their carbon footprint.

This can be achieved by purchasing ‘carbon credits’ which support investment in projects which remove carbon emissions from the atmosphere.

Typical examples of carbon offsetting include the funding of tree planting and clean energy projects, and developing carbon capture and storage (CCS) technologies which can remove carbon from the atmosphere.

However, a carbon neutral approach does not necessarily have to include a commitment to reduce overall carbon emissions – a business or organisation would simply need to offset the amount that they produce, however large that may be.

Explaining net zero

Commitment to net zero involves reducing emissions with the ultimate goal of balancing emissions produced and removed. The focus is on removing and reducing carbon emissions rather than just offsetting the amount that is produced.

The aim of the Paris Agreement is to reach net zero emissions globally by 2050 in order to limit the rise in global temperatures below 1.5°C. This cannot be done solely by adopting a ‘carbon neutral’ or offsetting approach.

Instead, governments must continue to pass legislation that will prevent carbon emissions in the first place, such as the internal combustion engine (ICE) vehicle bans in various countries which will come into effect over the next few decades and efforts to decarbonise the energy sector.

Why does the difference matter?

The difference between net zero and carbon neutral is important because we need to do more than just “offset” carbon by, for example, buying carbon credits to offset a certain number of flights.

Many companies have defaulted to this offsetting or carbon neutral approach so it looks as though they are being environmentally conscious but this requires very little time, money or effort on their behalf. Instead, they should be first focusing on opportunities for carbon reduction and supplementing this strategy with carbon offsetting.

We need a shift towards net zero and away from carbon neutral as it is a more proactive rather than reactive approach and will lead to the most significant and beneficial changes.

How can we reach the net zero target?

It is essential that governments around the world continue to pursue urgent action to reach net zero targets.

You can help campaign for a greater commitment to net zero carbon emissions around the world by supporting charities such as WWF.

They are advocating and campaigning for:

a 65% emissions reduction target for 2030, net zero emissions by 2040, and a target for carbon sinks;
an independent expert body to scrutinise EU climate policy;
all EU policies to be required to align with EU climate action;
just transition funding to depend on decarbonisation plans & deadlines;
an ambitious industrial decarbonisation policy, with only targeted use of renewable hydrogen allowed;
EU countries to phase out fossil fuels and their subsidies, ads and sponsorship rapidly, beginning with coal;
finance for clean technologies, for adaptation, loss and damage and scaled up climate action.

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