Carbon Neutral or Net Zero?

Introduction - “Carbon Neutral” and “Net-Zero”

The phrase “Carbon Neutral” has increased significantly in popularity over the past decade. It’s a phrase which has gotten so much use and has unfortunately been used to refer to a number of different things. The most common definition is that it refers to a state of balance between emitting and absorbing/removing carbon from the atmosphere. This is a simplistic, if outright erroneous view. Though the phrase itself has been successfully (and admirably) used to raise climate awareness beyond academic and research circles recently, it fails to adequately shed light on the other pollutants and greenhouse gases (GHG) which require attention in our atmosphere such as Nitrous Oxide (N2O), Carbon Dioxide (CO2), Methane (CH4) and fluorinated gases.

Carbon neutral, which is often also confused with climate neutral, should be defined as a state in which the measured climate footprint of an organisation or product (i.e., the greenhouse gas emissions) in carbon dioxide equivalent (CO2e) is removed from the atmosphere through carbon offsetting activities. These activities can range from investment in renewable energy and energy efficiency to investment in the preservation of natural carbon sinks such as soil, forests and oceans.

The words “carbon neutral” have also been widely conflated with “net-zero”, another buzzword which has taken on enormous popularity and significance since the Paris Climate Agreement in 2015. There are also varying definitions and a disparate understanding of what net-zero really means, resulting in lofty, erroneous claims by organisations and governments.

Net-zero, according to the Science-Based Targets Initiative (SBTi), can be achieved through a combination of the following:

• A deep reduction (90-95%) in Scopes 1, 2 and 3 emissions to zero or near-zero (at least to a point consistent with reaching the global net-zero emission goals)

• The removal of residual emissions through approaches such as “direct air capture” e.g., carbon capture, reforestation, etc.

In essence, carbon neutrality has the minimum requirement of covering Scope 1 & 2 emissions with Scope 3 being encouraged (according to the GHG Protocol), while net-zero must cover Scopes 1, 2, and 3 emissions.

What are Scope 1, Scope 2, and Scope 3 Emissions?

The GHG protocol introduced the concept of Scope in relation to emissions, to help differentiate between direct and indirect emission sources, improve transparency, and provide utility for different types of organisations, as well as different types of climate policies and business goals. These are Scopes 1, 2, and 3 defined for GHG reporting and accounting purposes.

• Scope 1 emissions (direct emissions) - These are emissions which are attributable to sources directly owned or operated by an organisation. For example, emissions from owned or controlled vehicles and gas boilers or direct emissions from manufacturing plants.

• Scope 2 emissions (indirect emissions) - These are GHG emissions from the generation of purchased electricity consumed by the company. These emissions physically take place at the facility where the electricity is generated.

• Scope 3 emissions (other indirect emissions) - These emissions are a consequence of the activities of the company but occur from sources not owned/controlled by the company (i.e., in the company’s supply chain). Examples include the extraction & production of raw materials, and the use of sold products and services.

What is PAS 2060 - The Certification for Carbon Neutrality Compliance

PAS 2060 is the internationally recognised certification which organisations can use for the demonstration of carbon neutrality. Compliance with this standard will validate claims of carbon neutrality. It was first published by the British Standards Institution (BSI) in 2010 and then updated in 2014.

It provides significant guidance on how to quantify, reduce and offset GHG emissions on a specified business area. This can include activities, products, services, buildings, projects, cities, and events.

So, What Should Companies Really Do?

Based on these definitions, it’s clear that companies and governments should aspire and work towards a net-zero status rather than carbon neutrality. This is what is truly needed to achieve the goal of limiting the rise in mean global temperature to 1.5 degrees Celsius by 2050. Unfortunately, today it is quite common to see companies put out marketing campaigns with information and promises on becoming carbon neutral. Given that the worldwide certification for this only requires offsetting of Scope 1 & Scope 2 emissions, it is easy to see how organisations can easily report and claim carbon neutrality.

While it can be an admirable achievement becoming carbon neutral, it pales in comparison to what should be done to achieve a net zero status - which means significant carbon footprint reduction rather than just offsetting. Scope 3 emissions for many organisations can make up more than 90% of total emissions and while no one has total control/influence over these emissions, steps can still be taken to mitigate them.

To achieve the goals set out in the Paris Climate Agreement, it is important to take important (not easy) steps to solve the climate crisis and mitigate climate change, which means doing things that make a difference as opposed to greenwashing.

Further Reading

https://www.europarl.europa.eu/news/en/headlines/society/20190926STO62270/what-is-carbon-neutrality-and-how-can-it-be-achieved-by-2050

https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf

https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf

https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement