What’s the commercial case for carbon neutrality?


Behind the drive to decarbonise lies the notion of carbon neutrality. This is the principle that carbon dioxide emissions entering the atmosphere can be balanced by the equivalent amount of carbon being removed.

It is a simple notion in theory but a complex one in practice. Confusion, for example, is often caused by companies alternating between carbon neutral, Net Zero and low carbon in their communications and accounting.

For an organisation or country to be carbon neutral today, any CO2 emissions are balanced out through carbon offsetting activities. This is understood to be a starting point or an interim step towards the more effective and comprehensive goal of achieving Net Zero.

The ultimate ‘zero’ goal means that a company, sector, or country does not add new greenhouse gases to the atmosphere at all, aiming to completely eliminate or offset all sources of greenhouse gas emissions, not just CO2.

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