February 17, 2025 Georgia Young
Carbon neutral v Net Zero: What’s the difference?
Carbon neutral and Net Zero are often confused, but they have distinct meanings and implications for businesses. To clear things up we broke down the key differences to help you choose the right path for your sustainability journey.
Carbon neutrality in a nutshell
When a business wants to achieve carbon neutrality, they need to balance carbon emissions generated, with what’s absorbed through natural carbon sinks via schemes such as offsetting. Specifically, being carbon neutral means that the amount of CO2 released during business operations is matched by the amount removed from the atmosphere.
In some cases, businesses that reach carbon neutrality may receive a neutrality badge or accreditation to signify this achievement.
Net Zero in a nutshell
Net Zero is the goal of balancing the greenhouse gases GHGs emissions released into the atmosphere by removing an equivalent amount. To combat climate change, both governments and businesses are setting Net Zero goals to lower their carbon emissions. Reaching these targets involves a combination of reducing emissions, minimising energy use, implementing decarbonisation strategies and minimal offsetting (up to 10% if businesses are to align with Science Based Targets Initiative).
What are the key differences between the two?
While both terms aim to reduce environmental impact, they differ in focus and ambition. Carbon neutrality focuses mainly on CO2, while Net Zero considers all GHGs, including methane and nitrous oxide, which have a higher warming potential. Carbon neutrality aims to stabilise emissions at zero through offsets. While Net Zero seeks to eliminate excess emissions and maintain that balance, often with a target around 2050.
Both carbon neutrality and Net Zero action can involve energy efficiency and offsets. However, Net Zero ambitions require more rigorous approaches, including technological innovations and widespread collaboration with supply chains. It goes beyond balancing just carbon emissions and considers the complete picture of business impact on the planet.
Which is better for businesses?
Both achieving carbon neutrality and Net Zero have positive benefits for the planet and businesses. They both drive action by removing emissions from the atmosphere, but Net Zero is focused on solving the root cause while the carbon neutrality can be achieved with minimal direct action and investment in offset projects locally or globally.
Both pathways will likely require offsetting, which is a complex element as we transition to a low carbon society.
At Amber, we see achieving Net Zero as future-proofing businesses in the longer term. Adding value to businesses by reduce costs and set businesses up as a climate leader making the business more appealing to new customers or potential investors.
How can Amber help?
We offer a range of services that will support and improve your business’s energy and carbon strategy. If you are interested in carbon consulting, carbon reduction roadmaps or quality offsetting options, please get in touch.
To read more about how Net Zero action can help inspire change in your business and empower your employees, read our blog about employee engagement with Net Zero.
