"Net zero" and "carbon neutral" are often used as synonyms, but they do not mean the same thing. Understanding the difference is key to defining your company's climate strategy and communicating it without greenwashing.
Carbon neutral
Being carbon neutral means offsetting your total emissions with carbon credits so that the net balance is zero. It does not necessarily require having reduced your emissions first: you can be carbon neutral by offsetting 100% of your footprint.
It is a good first step and a valid claim when it is backed by high-integrity credits with verifiable retirement.
Net zero
Net zero is more demanding and aligned with climate science. It implies three things, in order:
- Measure your full footprint, including scopes 1, 2 and 3.
- Reduce your emissions as much as possible across the value chain.
- Offset only the unavoidable remainder, ideally with high-quality removal credits.
Frameworks such as the SBTi require deep cuts before offsetting: offsetting does not replace reduction.
In summary
- Carbon neutral: offset total emissions. More accessible, ideal to start.
- Net zero: reduce first as much as possible and offset only the unavoidable. More rigorous and long-term.
The role of carbon credits
In both cases, high-integrity carbon credits are essential to cover the emissions that cannot be eliminated today. REDD+ and nature-based solution credits also bring co-benefits in biodiversity and communities.
Does your company want to move toward net zero or declare itself carbon neutral? Request a proposal with a tailored portfolio and retirement certificates in your name.