Net Zero Vs Carbon Neutral

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21 Aug, 2024

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The primary difference between Net Zero and Carbon Neutral is the gas emission scope, levels, and methods. Net Zero refers to an organization's initiative to reduce Greenhouse Gases (GHG) like carbon dioxide, methane, sulfur, and nitrous oxide released in the atmosphere. On the contrary, Carbon Neutral means minimizing carbon footprint by reducing, controlling, or avoiding CO₂ emissions.

Net zero is an attempt to offset an amount equivalent to the amount of GHG emitted from different sources. Any residual emissions are addressed through carbon offsetting or removal projects. Thus, once net zero emissions are achieved, carbon neutrality follows.

Difference Between Net Zero Vs. Carbon Neutral

The major difference between net zero and carbon neutral is that the former focuses on eliminating greenhouse gasses, and the latter aims to balance carbon dioxide levels.
Net zero considers methane, carbon dioxide, sulfur, and nitrous oxide emissions. Carbon neutrality only considers CO₂emissions.
Organizations working toward net zero strive to reduce GHG emissions to zero. Carbon neutral companies reduce CO₂ emissions by balancing carbon sink deposits.
About 76% of GHG is composed of carbon dioxide. Due to this, the highest adverse impacts on the environment come from carbon dioxide emissions.

Net Zero Vs Carbon Neutral: Comparative Table

Though net zero and carbon neutral are considered somewhat similar and used interchangeably at times, certain key differences can be seen. They are:

Basis	Net Zero	Carbon Neutral
Meaning	It refers to the reduction in the GHG levels emitted by organizations.	Carbon neutral refers to neutralizing the CO₂ emissions in the atmosphere.
Objective	It aims to reduce the emissions of greenhouse gasses (in all forms) released by industries and organizations.	It aims to reduce the carbon footprint created by organizations and establish balance across carbon sinks (oceans, forests, etc.).
Gasses Included	It includes all greenhouse gasses like methane, sulfur, nitrous oxide, carbon dioxide, hydrofluorocarbons, and others.	The focus is only on the carbon dioxide emitted by companies.
How to Reduce?	Net zero emissions are possible via in-built filter machines and natural methods.	Industries can install Direct Air Capture (DAC) technologies to contain CO₂ emissions wherever required.
Regulatory Standards and Guidelines	GHG Protocol is a popular standard used for monitoring emission levels (through corporate accounting and reporting). The European Union presented the Net-Zero Industry Act.	The CarbonNeutral Protocol, Climate Neutral Now, and PAS 2060 are certain initiatives relevant to this area.
Approach	It has a broader perspective, as GHG includes many forms of gas.	It only covers carbon dioxide emissions.

What Is Net Zero?

The term “Net Zero” refers to reducing greenhouse gas emissions or eliminating a quantum of GHG equal to the amount produced to balance the emissions. Simply put, it aims to flush out GHG from the atmosphere. Organizations undertaking such initiatives continue to do so until the level drops to zero. Whatever GHG emissions remain unaddressed are handled through carbon offsetting or removal projects. However, it only includes GHG; non-greenhouse gasses like aerosol are not included.

Net Zero was first discussed during the 5th Assessment Report of the Intergovernmental Panel on Climatic Change and the United Nations Framework Convention on Climate Change (UNFCCC) Structured Expert Dialogue, resulting in the finalization of Article 4 of the 2015 Paris Agreement. The objective was to reduce and maintain the global warming level at 1.5°C. The EU recently presented the Net-Zero Industry Act in an attempt to promote the development and use of net-zero technologies.

Net zero follows a simple mechanism to reduce or eliminate GHG from the atmosphere. According to certain statistics, the energy sector and industrial plants emit the most GHG, causing significant disturbances in the environment. Balancing these harmful emissions is vital. Some methods include substituting polluting components with recycled or green alternatives, using technologies like carbon dioxide scrubbers, stimulating or enhancing photosynthesis in coastal plants, and others.

Classification Of Net Zero

The Greenhouse Gas Protocol classifies GHG emissions under three types. These help firms identify different GHG sources. It also recommends suitable solutions to facilitate net zero emissions.

Scope #1

It refers to GHG emissions originating from primary, original, or direct sources. Such emissions can be controlled directly at source by the companies or organizations producing them—for example, GHG emissions from boilers, vehicles, chemical production, and furnaces. However, it does not include direct CO2 emissions from burning biomass.

Scope #2

Scope 2 covers GHG emissions from using electricity for production. In technical terms, it is called "purchased electricity, steam, or heat" for commercial uses.

Scope #3

The last category covers indirect GHG emissions observed at different stages of the product or service value chain (from production to delivery). They usually occur at points or sources over which companies have no control.

What Is Carbon Neutral?

Carbon Neutral is an organization's effort to eliminate the carbon dioxide they emit. It is also referred to as carbon neutrality. It aims to balance CO₂ emissions absorbed by carbon sinks. Oceans, forests, land, soil, etc., are typical carbon sinks that absorb CO₂. These sinks usually absorb unmanageable amounts of CO₂. Therefore, offsetting these pollutants is crucial. Artificial carbon sinks can be an option, but they are not known to effectively reduce or absorb CO₂ emissions.

The major difference between net zero and carbon neutral lies in the approach adopted toward emission reduction. Net zero aims to reduce GHG emissions, while carbon neutral companies aim to balance CO₂ levels. However, carbon neutrality contributes to net zero. It can lead to a significant reduction in GHG levels. Among various GHG emissions, carbon dioxide accounts for 76%. Thus, carbon neutral companies focus on reducing carbon footprint using carbon-neutral technology; it is considered an effective solution.

According to a 2022 report, CO₂ emissions from certain developing countries in Asia (other than China) rose by 4.2%. A few carbon neutral countries as of 2023 are Comoros, Gabon, Guyana, Madagascar, and Niue.

How To Achieve Carbon Neutrality?

In this section, let us see how carbon neutral companies achieve carbon neutrality.

Companies can calculate their carbon footprint using certain tools and come up with measures to contain emissions. For instance, switching to renewable energy sources like wind and solar can reduce carbon footprint.
Some corporations invest in carbon offset projects to earn carbon credits. Such projects include wetland restoration, tree plantation, woodland creation, etc.