CARBON NEUTRALITY vs NET ZERO EMISSIONS: UNDERSTANDING THE DIFFERENCE

The increasing prevalence of terms like “Carbon Neutrality” and “Net Zero Emissions” reflects the global trend of sustainability, as more and more companies commit to environmental goals. However, many people still confuse between “Carbon Neutrality” and “Net Zero Emissions”. Let’s explore with VSSES throughout the article below.

I. CARBON NEUTRALITY

1. What does “Carbon Neutrality” mean?

Carbon neutrality refers to a state in which the amount of carbon dioxide released into the atmosphere is equal to the amount of carbon dioxide absorbed by carbon sinks. Or simply, eliminate all carbon emissions altogether. Any system that absorbs more carbon than it emits, such as forests, soils, and seas, is considered a carbon sink. These play a crucial role in mitigating climate change.

The European Union Commission estimates that between 9.5 and 11 billion tons of CO2 is absorbed annually by natural sinks. No man-made carbon sinks have been able to date to remove enough carbon from the atmosphere to stop global warming. As a result, businesses have two alternatives for being carbon-neutral: either dramatically decreasing their carbon emissions to net zero or balancing their emissions via offset and the purchase of carbon credits.  Additionally, businesses can invest in renewable energy projects, enhance energy efficiency, and implement other emission-reduction measures.

2. “Carbon Neutrality” does not mean Carbon-free

Products, services, or businesses that are carbon-free do not produce any carbon emissions during production, delivery, or operation. This must apply to every step of the supply chain, including logistics, packaging, and all raw materials. In reality, there aren’t any instances of carbon-free goods currently.

On the other hand, every business and any product may be Carbon Neutrality since there are current criteria for calculating their emissions and approved carbon offset programs that businesses can fund to make up for the estimated emissions.

3. Why is it important to be Carbon Neutrality? 

According to a report published in the Earth System Science Data (ESSD), scientists estimate that in the past decade (2012-2021), an average of 54 billion tons of CO₂ was emitted into the atmosphere annually, equating to about 1,700 tons per second. From 2013 to 2022, human-induced global warming has been increasing at an unprecedented rate of over 0.2 ∘C per decade, leading to droughts, floods, and other severe environmental consequences. These changes cause significant damage to live and property, making urgent carbon emission reduction necessary.

II. NET ZERO EMISSIONS 

1. What does “Net Zero Emissions” mean? 

Net zero carbon means achieving a balance between greenhouse gas emissions created and emissions removed from the environment. Net Zero allows for some emissions as long as they are fully counterbalanced by carbon removal processes. For example, this can be achieved through afforestation (planting new forests) or carbon capture technologies. The more emissions produced; the more carbon dioxide must be removed to reach Net Zero Carbon.

2. Why is “Net Zero Emissions” important? 

 Reduces climate-related risks:

• Droughts: Improves water quality, food production, and soil carbon absorption while reducing wildfire risks.
• Floods: Helps mitigate major disasters and supports natural stability.
• Desertification: Limiting global warming to 1.5°C can reduce up to two-thirds of the world’s drylands.

 Stabilizes ecosystems and natural resources:

• Supports ecological balance and minimizes climate-related damages.

 Business benefits:

• Helps companies mitigate climate risks for stakeholders.
• Enhances corporate reputation among environmentally conscious customers.

III. DIFFERENCES BETWEEN CARBON NEUTRALITY & NET ZERO EMISSIONS? 

IV. SHOULD BUSINESS STRIVE FOR CARBON NEUTRALITY OR NET ZERO EMISSIONS? 

It depends on a company’s goals, resources, and environmental commitments.

Aiming for Carbon Neutrality is a good place to start, and it is virtually the same as reaching net zero emissions if you approach it with the attitude of first lowering carbon emissions as much as you can before you start offsetting.

But after COP26, the phrase “net zero” gained popularity and is in line with the international target of keeping temperature increases under 1.5°C. Instead of referring to the operations of a single corporation, it alludes to a condition of human life that we could one day achieve. It also emphasizes lowering emissions as much as humanly possible (usually 90–95%) and solely using offsets to reduce the little amount of carbon that is unavoidably present in the atmosphere.

For businesses implementing environmental changes, Net Zero should be the ultimate goal. However, in the short term, Carbon Neutrality is a more practical and achievable milestone on the journey to sustainability.

At VSSES, we take pride in being a pioneer in rooftop solar energy solutions, helping businesses save costs while significantly reducing carbon emissions. With a strong commitment to sustainability,

VSSES solutions play a crucial role in achieving Carbon Neutrality and working towards Net Zero Emissions.

Join VSSES to build a sustainable future while enhancing your company’s reputation and social responsibility.

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