Carbon neutrality and net zero emissions - what's the difference?

💡 What is the difference between carbon neutrality and net-zero emissions? Both terms refer to a balance in emissions. CARBON NEUTRALITYCarbon neutrality refers to when carbon sequestration equals carbon emissions. In order for a company to achieve carbon neutrality, it needs to know how much it emits and then offset the emissions by purchasing carbon credits that result in sequestration. Carbon can be sequestrated, for example, through forestry or technology that captures and stores it.👉 A company can “achieve” carbon neutrality without reducing direct emissions, if it sequesters enough in return. Overall, this is not enough to meet the world’s climate goals, we also need to reduce emissions.👉 Carbon neutrality is often used in the context of a company’s direct emissions (scope 1 and 2). Scope 1 is emissions that occur during the day-to-day operation of an activity and scope 2 is emissions due to energy use, but companies are encouraged to include scope 3. Scope 3 is what covers the entire value chain, or emissions that occur with third parties in order for a company to conduct its business. More terms!? This week, the environmental company South Pole released a new term that they believe is more descriptive of the climate investments that are being made on this journey. The term is “Funding Climate Action (FCA)” and replaces carbon neutrality. This has been well received in many places, including the Science Based Target initiative. More here: https://lnkd.in/dp_N62YuWHEN NET EMISSIONS ARE ZEROWhen net emissions are zero (net-zero) refers to a goal that is often used in the context of the whole world, individual countries or industries. In order to limit global warming to 1.5°C, net human-caused emissions must be zero by 2050. This refers to the emissions of all greenhouse gases that cause warming. 👉 Companies that contribute to this journey (e. net-zero targets) most often use the term in the context of carbon (e. carbon net-zero) where the general term is used for all greenhouse gases. It is necessary to start by reducing emissions by all means, as close to zero as possible and sequestering the rest with carbon credits. 👉 This goes further than carbon neutrality and, in addition to direct emissions, scope 3 is included, i.e. the value chain. This means that, for example, suppliers' emissions are taken into account. 👉 The Science Based Targets initiative, an organization that certifies that companies' goals and action plans are in line with the goals of the Paris Agreement, uses this methodology. Both terms describe important climate actions, but achieving the goal of net zero emissions is broader and longer-term. Thanks to Kolbrún Fríðu Hrafnkellsdóttir, Sustainability Engineer at South Pole, for the useful information!