Carbon neutrality is a state achieved when an entity, such as a company or product, balances its emitted carbon dioxide (CO 2) with an equivalent amount of CO 2 being removed or compensated for. This framework allows organizations to take immediate responsibility for their climate impact while working on long-term reduction strategies.
Carbon neutrality represents a critical milestone in an organization's climate action journey. It is the process of calculating total greenhouse gas (GHG) emissions and balancing them through a combination of internal reductions and external offsetting measures. This concept is fundamental for companies, cities, and countries aiming to mitigate their impact on climate change, often as a key step towards fulfilling commitments under the Paris Agreement.
The path to achieving carbon neutrality follows a clear, hierarchical process:
- 1. Measure (Calculate your Carbon Footprint): The first step is to conduct a thorough GHG emissions inventory to understand the full extent of an entity 2s carbon footprint. This typically covers:
- Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion in company vehicles).
- Scope 2: Indirect emissions from the generation of purchased electricity, heat, or steam.
- Scope 3: All other indirect emissions that occur in the value chain (e.g., business travel, supply chain logistics, product use).
- 2. Reduce (Prioritize Internal Abatement): Before compensating for emissions, the priority must be to reduce them at the source. This is the most impactful part of any climate strategy and ensures the credibility of a neutrality claim. Reduction efforts include improving energy efficiency, switching to renewable energy sources, and optimizing supply chains.
- 3. Offset (Compensate for Unavoidable Emissions): After all viable reduction measures have been implemented, the remaining, unavoidable emissions are balanced by purchasing carbon credits. Each credit represents a certified ton of CO 2 equivalent that has been prevented from being emitted or has been removed from the atmosphere by a project elsewhere (e.g., a renewable energy farm or a reforestation initiative). The quality and verification of these credits are crucial.
Concrete Examples
- Corporate Carbon Neutrality: A consulting firm calculates its annual emissions from office energy use (Scope 2) and employee air travel (Scope 3). It reduces its footprint by switching its offices to a certified green electricity provider. To address the remaining emissions from unavoidable flights, the firm purchases high-quality carbon credits from a verified solar energy project, thereby achieving carbon neutrality for its operations that year.
- Product Carbon Neutrality: A beverage company calculates the entire lifecycle emissions of a specific drink, from sourcing raw ingredients to packaging and distribution. After implementing lighter packaging and optimizing transport routes, it purchases carbon credits equivalent to the product's remaining footprint. The product can then be marketed as "carbon neutral," with its impact compensated for.
Internal Link Suggestion: Learn more about Carbon Credits and their role in decarbonization
External Link Suggestion: Read the BSI's official PAS 2060 standard for carbon neutrality