Carbon neutral and net zero both involve balancing greenhouse gas emissions, but they are not used to describe the same level of action.
Carbon neutrality applies to a defined carbon footprint, such as an organisation, product, service or activity. The emissions within that boundary are measured and reduced where possible, with carbon credits or other recognised measures used to compensate for the remaining emissions.
Net zero places much greater emphasis on reducing greenhouse gas emissions before dealing with emissions that remain. For a business, this means identifying significant sources of emissions across its operations and value chain and making substantial reductions. Residual emissions that cannot be eliminated are then balanced by greenhouse gas removals.
The scope also matters. A carbon-neutral claim can relate to a particular product, activity or part of an organisation, whereas a corporate net-zero target will normally consider a much broader greenhouse gas footprint.
Businesses should therefore avoid using carbon neutral and net zero interchangeably. The boundary, emissions included and method used to substantiate either claim should always be made clear.
