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The term 'net zero' has gained widespread use as a goal for addressing climate change, but its precise definition and scope still cause confusion among the general audience. According to the Science Based Targets initiative (SBTi) and the ISO Net Zero Guidelines, net zero is a science-driven approach that requires organisations to drastically reduce greenhouse gas (GHG) emissions and neutralise any residual emissions that cannot be reduced by any other means. The pathway of yearly reduction organisations should follow is set by the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, and it’s roughly a 43% reduction by 2030, and an 84% reduction by 2050 from a 2019 baseline year.
The terms net zero and carbon neutral are often used interchangeably, but they mean very different things:
Net Zero
Net zero refers to reducing greenhouse gas (GHG) emissions as close to zero as possible across an entire value chain and then neutralising any remaining emissions (often called residual emissions that represent no more than 10% of the baseline emissions) through verified carbon removal methods. Reaching net zero requires organisations to cut their emissions by at least 90% across Scopes 1, 2, and 3—covering direct operations, purchased electricity, and upstream and downstream activities—by 2050. The focus is on substantial emissions reductions rather than relying on carbon offsets. Under net zero definitions, only a small amount of residual emissions, which are emissions that cannot be feasibly eliminated with current technology, may be offset through methods like direct air capture or reforestation. This distinction ensures that the term 'net zero' represents real, quantifiable reductions in emissions that align with global climate goals.
Net zero is always a long-term target. No company has fully achieved net zero yet under the SBTi’s stringent definition, because reaching this target involves a level of reduction that our current reliance on fossil fuels makes extremely challenging. Many industries still depend on fossil fuels for key activities, including manufacturing, transportation, and heating, and the infrastructure to fully replace these energy sources with low- or zero-emission alternatives is not yet widely available.
Carbon Neutral
Carbon neutrality, on the other hand, refers to balancing emitted carbon with equivalent carbon credits, but it does not necessarily require a drastic reduction in emissions across the value chain. This means that a company can achieve carbon neutrality by measuring its current emissions and then purchasing carbon offsets, such as investing in renewable energy projects, afforestation, or other initiatives that claim to neutralise emissions by removing an equivalent amount of CO₂ from the atmosphere. Buying carbon credits doesn’t represents a long-term reduction in emissions, allowing companies to reach 'carbon neutral' status without making substantial changes to their operations.
Why is net zero important for a sustainable future?
Achieving net zero is essential in reducing the impacts of climate change on our planet. Rising temperatures have already led to more frequent and severe natural disasters. The drive to reach net zero is not only about immediate climate stability; it’s about ensuring a habitable planet for future generations. By setting and working toward ambitious net-zero targets, we send a powerful signal about the value of long-term environmental responsibility. This creates a lasting impact, encouraging governments, corporations, and individuals to adopt sustainable practices and fostering a culture of accountability for the health of our planet.
Net zero is essential for achieving the Paris Agreement targets, mitigating climate change impacts, promoting energy independence, and ensuring ecosystem stability now and for the future.
*Source of image: https://unfccc.int/sites/default/files/resource/sb2023_09_adv.pdf
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