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09.08.23
💡 What is the difference between carbon neutral and net-zero emissions? Both terms refer to a balance in emissions. In order for a company to achieve carbon neutrality, it needs to know how much it emits and then offset the emissions by purchasing carbon units that result in sequestration. Carbon can be sequestered, for example, with forestry or technology that captures and stores it.👉 A company can "achieve" carbon neutrality without reducing direct emissions, if it sequesters enough in return. Overall, it is not enough to meet the world's climate goals, we must also reduce emissions.👉 Carbon neutrality is often used in the context of a company's direct emissions (scope 1 and 2). Scope 1 is emissions that occur during the daily operation of activities and scope 2 is emissions due to energy consumption, but companies are encouraged to include scope 3. Scope 3 is what covers the entire value chain, or emissions that occur with third parties for companies to carry out their activities. More terms!? This week the environmental company South Pole released a new term that they believe is more descriptive of the climate investments that have been made in on this road trip. The term is "Funding Climate Action (FCA)" and replaces carbon neutrality. This has been well received in many places, including the Science Based Target initiative. More here: https://lnkd.in/dp_N62Yu WHEN NET EMISSIONS ARE ZERO When net-zero emissions are a goal that is often used in the context of the entire world, individual countries or industries. In order to limit global warming to 1.5°C, net man-made emissions must be zero by the year 2050. This means the emission of all greenhouse gases that cause warming.👉 A company that contributes to this journey (e. net- zero targets) uses the term most often in the context of carbon (e.g. carbon net-zero) as the general term is used for all greenhouse gases. You have to start by reducing emissions by all means, as close to zero as possible and tie up the rest with carbon units.👉 We are going further than carbon neutrality and together with direct emissions, scope 3 is included, i.e. the value chain. This means that, for example, the emissions of suppliers are taken into account. 👉 Science Based Targets initiative, an organization that confirms that the goals and action plans of companies are in line with the goals of the Paris Agreement, supports this methodology. Both concepts describe important climate actions, but achieving the goal of net emissions will be closer to zero more widely and in the long term. Thanks to Kolbrún Frída Hrafnkellsdóttir, sustainability engineer at South Pole for useful information!