Net Zero vs Carbon Neutral: What Are the Differences?

Carbon Neutral vs Net Zero: Comparing Strategies

The fight against climate change has led to the adoption of two key strategies for managing greenhouse gas emissions: Carbon Neutral and Net Zero. Although often used interchangeably, these terms represent different approaches with distinct goals and methods.

In this article, we will explore the fundamental differences between the two concepts and their strategic implications.

Carbon Neutral: Offsetting as a Goal

Meaning of Carbon Neutral: Carbon neutrality means balancing the CO₂e emissions produced by an organisation, event, and/or product by offsetting them through the purchase of certified carbon credits.

How is Carbon Neutrality Achieved?

1. Measuring Emissions: Identifying and calculating all emissions generated, including Scope 1 and Scope 2 emissions.
2. Reduction: Implementing measures to lower internal emissions wherever possible.
3. Offsetting: Investing in projects that prevent or absorb an equivalent amount of emissions, such as nature-based conservation and reforestation projects or renewable energy initiatives.

Goal: Achieving carbon neutrality is a short-term target, as emissions can be quickly balanced through offsetting without the need to set a reduction goal across the entire value chain.

Net Zero: Emission Reduction and Removal

Meaning of Net Zero: Net zero involves a strategy to reduce emissions across the entire value chain (Scope 1, 2, and 3) through a structured decarbonisation pathway. Once the reduction strategy is implemented, any remaining emissions can be offset using carbon removal solutions.

How is Net Zero Achieved?

1. Systemic Reduction: Implement long-term strategies to cut emissions across all operational areas and the supply chain (Scope 1, 2, and 3 emissions).
2. Carbon Removal: Address residual emissions with solutions such as reforestation, direct air capture (DAC), or geological sequestration.
3. Investment in Natural Capital: Support practices that protect and enhance ecosystems capable of absorbing CO₂e.

Goal: Net zero is a long-term objective that requires deep transformations and investments in technological innovation and operational sustainability.

How to Choose the Right Strategy?

The choice between carbon neutrality and Net Zero depends on a company’s goals, available resources, and climate ambition. Carbon neutrality is a quicker and more straightforward solution, while Net Zero is a deeper commitment, driving a shift towards a more responsible and regenerative business model.

For real progress against climate change, aiming for Net Zero is the most comprehensive and strategic choice. Continuously reducing emissions across the entire value chain and neutralising residual ones through carbon removal solutions ensures lasting impact. Investing in Net Zero means adopting a scientific, ambitious, and future-oriented approach, going beyond simple carbon neutrality. This journey not only helps mitigate climate change but also positions businesses as leaders in the transition to a sustainable and resilient economy.

Green Future Project supports companies on both paths, providing tailored guidance and strategic expertise to achieve tangible results.