What does Carbon neutral actually mean?

Introduction

Carbon neutrality refers to a state where the amount of carbon dioxide (CO2) released into the atmosphere is equal to the amount of CO2 removed through various methods, resulting in a zero balance or a zero carbon footprint. The term “carbon footprint” is defined as the total greenhouse gas (GHG) emissions caused by an individual, organization, service, or product.

There are several approaches to achieve this balance. The most environmentally beneficial way is to ensure that the emissions of CO2 do not exceed the natural absorption capacity of the world’s forests and plants. Forests and plants act as carbon sinks, utilizing the process of photosynthesis to absorb CO2 from the air and convert it into oxygen, thereby helping to reduce overall emissions.

In a statement delivered in 2020, United Nations Secretary-General António Guterres outlined the key factors necessary for achieving climate neutrality:

1. Building a global coalition dedicated to supporting carbon neutrality by 2050.
2. Mobilizing global finance in alignment with the Paris Agreement and the Sustainable Development Goals (SDGs).
3. Making significant progress in adapting to and building resilience against climate change.

António Guterres, United Nations (UN) Secretary-General, emphasized the importance of every country, city, financial institution, and company adopting plans to transition to a net-zero emissions trajectory.

DIFFERENCES BETWEEN CARBON POSITIVE, CARBON NEUTRAL, AND CARBON NEGATIVE

In addition to carbon neutrality, it is essential to understand two related concepts that are often confused and misused:

1. Carbon negative: This term describes an activity or initiative that goes beyond carbon neutrality by removing more CO2 from the atmosphere than it emits. For example, Microsoft recently announced its commitment to becoming carbon negative by 2030.
2. Carbon positive: This term refers to an activity that releases more carbon into the atmosphere than it removes or compensates for, resulting in a negative impact on the planet.

Carbon neutral does not mean carbon free  

There is often confusion between the terms “carbon free” and “carbon neutral,” but they actually have different meanings in the context of climate action. When something is described as carbon free, it means that it does not generate any carbon emissions throughout its manufacturing, provision, or operational processes. This includes all stages of the supply chain, from raw materials to logistics and packaging. However, it is important to note that there are currently no examples of carbon-free products available.

On the other hand, any company or product can achieve carbon neutrality. This involves calculating the emissions produced by the company or product and then supporting certified carbon offset projects to compensate for those emissions. There are established standards in place to determine and quantify these emissions, allowing companies to take appropriate actions to offset their carbon footprint.

Credibly carbon neutral 

To achieve the highest level of credibility and make a positive impact on the climate, companies should go beyond carbon offsetting and implement a transparent strategy for carbon avoidance and reduction. One company that exemplifies this approach is ALDI Süd, a grocery retailer. Since 2012, ALDI Süd has successfully reduced its carbon footprint by 66% and has been carbon neutral since 2017. However, the company recognizes that further reduction of carbon emissions remains an ongoing challenge. To address this, they utilize their carbon footprint to set long-term reduction targets and determine necessary actions. One successful initiative has been the transition to green electricity.

Nevertheless, certain industries face limitations in immediately reducing their carbon emissions. For instance, a haulage company cannot replace its entire fleet of trucks overnight. However, they can incrementally improve efficiency through driver training and optimizing the carbon emission load factor per tonne-kilometer. Despite these constraints, companies should commence the carbon offsetting process promptly and strive to become carbon neutral as soon as possible.

HOW CAN WE ACHIEVE CARBON NEUTRALITY?

The Intergovernmental Panel on Climate Change (IPCC) group of experts asserts that achieving carbon neutrality by 2050 and limiting global warming to 1.5°C is feasible, but emphasizes the need for unprecedented social and political change to reach this target. In a recent communication, the United Nations (UN) outlined key steps to be taken in the short term:

1. Establish a carbon price that enables investments in carbon removal technologies and the development of low-emission alternatives like renewable energy.
2. Cease the construction of new coal-powered power stations, which contribute significantly to carbon emissions.
3. Shift the burden of carbon taxation from taxpayers to the polluters themselves.
4. Require the disclosure of economic risks associated with climate change.
5. Integrate the objective of carbon neutrality into countries’ financial and fiscal decision-making processes.

At an individual level, every citizen has the ability to reduce their carbon footprint, which is crucial for attaining climate neutrality. Here are some helpful tips:

• Minimize energy consumption by using energy-efficient appliances and practices.
• Opt for sustainable transportation options such as walking, cycling, or public transport.
• Reduce waste generation by recycling, composting, and avoiding single-use items.
• Conserve water by using it efficiently and avoiding unnecessary wastage.
• Choose environmentally friendly products and support sustainable businesses.
• Advocate for climate-conscious policies and raise awareness within your community.

By implementing these actions collectively, we can make significant strides toward a sustainable and carbon-neutral future.

THE BENEFITS OF REACHING CARBON NEUTRALITY

Achieving carbon neutrality is crucial not only for mitigating the severe consequences of climate change but also for delivering numerous benefits to communities and society as a whole. These benefits encompass:

1. Reduction in environmental pollution leading to improved health conditions.
2. Promotion of sustainable economic growth and the creation of green jobs.
3. Enhancement of food security by mitigating the impacts of climate change.
4. Conservation of biodiversity and restoration of ocean health.

In addition, companies can directly reap advantages from carbon neutrality, as highlighted by the NGO Carbon Trust:

1. Demonstrating the company’s commitment to decarbonization and its efforts to offset residual impacts.
2. Enhancing the company’s reputation as an environmentally responsible brand by showcasing its green credentials.
3. Aligning with the United Nations Sustainable Development Goals (SDGs) and mitigating risks associated with climate change at both the societal and organizational levels.