Net Zero
Definition and scope
Net zero means anthropogenic emissions are balanced by anthropogenic removals over a specified period; carbon neutrality is often used more loosely. Net zero requires deep decarbonisation first, with removals (nature-based and engineered) reserved for residual, hard-to-abate emissions. Traps: treating offsets as a substitute for reduction; confusing gross vs net emissions; ignoring scope boundaries.
Targets and pathways
Science-based targets (SBTi) align corporate goals with 1.5°C; near-term (5–10 years) and long-term (net zero by 2050) targets are distinct. The mitigation hierarchy - avoid, reduce, substitute, compensate - governs credible strategy. Corporate net-zero claims should cover Scopes 1, 2 and material Scope 3.
Carbon credits and integrity
Voluntary credits must be additional, measurable, permanent, verifiable, and avoid double counting. Quality concerns (over-crediting, impermanence) make credits a complement, not a core strategy.
Worked example
A firm emits 100 kt CO2e. It cuts 60 kt through efficiency and renewables, leaving 40 kt residual. It removes 40 kt via verified durable removals → net zero. If instead it simply buys 100 kt of credits without reducing, that is offsetting, not net zero.
Traps
- Equating net zero with zero emissions.
- Using low-quality offsets to claim net zero.
- Setting a target without interim milestones or Scope 3 coverage.