Carbon neutrality

Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon dioxide emissions by balancing carbon dioxide emissions with carbon removal (often through carbon offsetting) or simply eliminating carbon dioxide emissions altogether (the transition to the "post-carbon economy").[1] It is used in the context of carbon dioxide-releasing processes associated with transportation, energy production, agriculture, and industrial processes. Carbon-neutral status can be achieved in two ways:

  • Balancing carbon dioxide emissions with carbon removal beyond natural processes, often through carbon offsetting, or the process of removing or sequestering carbon dioxide from the atmosphere to make up for emissions elsewhere.[2] Some carbon-neutral fuels work in much the same way by being made from carbon dioxide themselves, either natural or man-made, despite producing carbon emissions as well.[3] Much more extreme forms of carbon dioxide removal may also be used.
  • Reducing carbon emissions (low-carbon economy) through changing energy sources and industry processes. Shifting towards the use of renewable energy (e.g. hydro, wind, and solar power) has shown the reduction of carbon dioxide emissions.[4] Although both renewable and non-renewable energy both produce carbon emissions, renewable energy has a lesser to almost zero carbon emissions.[5] which produces much less carbon emissions compared to fossil fuels. Making changes to current industrial and agricultural processes to reduce carbon emissions (for example, diet changes to livestock such as cattle can potentially reduce methane production by 40%.[6] Carbon projects and emissions trading are often used to reduce carbon emissions, and carbon dioxide can even sometimes be prevented from entering the atmosphere entirely (such as by carbon scrubbing).
Veerappa Moily releasing the "Carbon Neutrality Initiative" during the 11th International Oil & Gas Conference and Exhibition (PETROTECH-2014) in Noida, Uttar Pradesh

The concept may be extended to include other greenhouse gases (GHGs), usually carbon-based, measured in terms of their carbon dioxide equivalence. The phrase was the New Oxford American Dictionary's Word of the Year for 2006.[7] The term climate neutral reflects the broader inclusiveness of other greenhouse gases in climate change, even if CO2 is the most abundant. The terms are used interchangeably throughout this article.


Carbon neutrality is usually achieved by combining the following steps (although these may vary depending whether the strategy is implemented by individuals, companies, organizations, cities, regions, or countries):


In the case of individuals, decision-making is likely to be straightforward, but for more complex set-ups, it usually requires political leadership at the highest level and wide popular agreement that the effort is worth making.

Counting and analyzingEdit

Counting and analyzing the emissions that need to be eliminated, and the options for doing so, is the most crucial[citation needed] step in the cycle as it enables setting the priorities for action – from the products purchased to energy use and transport – and to start monitoring progress. This can be achieved through a GHG inventory that aims at answering questions such as:

  • Which operations, activities, units should be included?
  • Which sources should be included (see section Direct and indirect emissions)?
  • Who is responsible for which emissions?
  • Which gases should be included?

For individuals, carbon calculators simplify compiling an inventory. Typically they measure electricity consumption in kWh, the amount and type of fuel used to heat water and warm the house, and how many kilometres an individual drives, flies and rides in different vehicles. Individuals may also set various limits of the system they are concerned with, e.g. personal GHG emissions, household emissions, or the company they work for.

There are plenty of carbon calculators available online, which vary significantly in their usefulness and the parameters they measure. Some, for example, factor in only cars, aircraft and household energy use. Others cover household waste or leisure interests as well. In some circumstances, actually going beyond carbon neutral (usually after a certain length of time taken to reach carbon breakeven) is an objective.


In starting to work towards climate neutrality, businesses and local administrations can make use of an environmental (or sustainability) management system or EMS established by the international standard ISO 14001 (developed by the International Organization for Standardization). Another EMS framework is EMAS, the European Eco Management and Audit Scheme, used by numerous companies throughout the EU. Many local authorities apply the management system to certain sectors of their administration or certify their whole operations.


One of the strongest arguments for reducing GHG emissions is that it will often save money. Energy prices across the world are rising, making it harder to afford to travel, heat and light homes and factories, and keep a modern economy ticking over. So it is both common sense and sensible for the climate to use energy as sparingly as possible. Examples of possible actions to reduce GHG emissions are:

  • Limiting energy usage and emissions from transportation (walking, using bicycles or public transport, avoiding flying, using low-energy vehicles), as well as from buildings, equipment, animals and processes.
  • Obtaining electricity and other forms of energy from a low carbon energy sources.
  • Electrification (using electricity rather than combustion).[8]

Wind power, nuclear power, hydropower, solar power and geothermal are the energy sources with the lowest life-cycle emissions, which includes deployment and operations.


The use of Carbon offsets aims to neutralize a certain volume of GHG emissions by funding projects which should cause an equivalent reduction of GHG emissions somewhere else, such as tree planting. Under the premise “First reduce what you can, then offset the remainder”, offsetting can be done by supporting a responsible carbon project, or by buying carbon offsets or carbon credits.

Carbon offsetting is also a tool for severals local authorities in the world.[9]

In 2015, the UNFCCC, following the mandate of the CDM Executive board, launched a dedicated website where organizations, companies, but also private person are able to offset their footprint ( with the aim of facilitating everyone's participation in the process of promoting sustainability.

Offsetting is sometimes seen as a charged and contentious issue. For example, James Hansen describes offsets as "modern day indulgences, sold to an increasingly carbon-conscious public to absolve their climate sins."

Evaluation and repeatingEdit

This phase includes evaluation of the results and compilation of a list of suggested improvements, with results documented and reported, so that experience gained of what does (and does not) work is shared with those who can put it to good use. Finally, with all that completed, the cycle starts all over again, only this time incorporating the lessons learned. Science and technology move on, regulations become tighter, the standards people demand go up. So the second cycle will go further than the first, and the process will continue, each successive phase building on and improving on what went before.

Being carbon neutral is increasingly seen as good corporate or state social responsibility and a growing list of corporations and states are announcing dates for when they intend to become fully neutral. Events such as the G8 Summit[10] and organizations like the World Bank[11] are also using offset schemes to become carbon neutral. Artists like The Rolling Stones[12] and Pink Floyd[13] have made albums or tours carbon neutral.

Direct and indirect emissionsEdit

To be considered carbon neutral, an organization must reduce its carbon footprint to zero. Determining what to include in the carbon footprint depends upon the organization and the standards they are following.

Generally, direct emissions sources must be reduced and offset completely, while indirect emissions from purchased electricity can be reduced with renewable energy purchases.

Direct emissions include all pollution from manufacturing, company owned vehicles and reimbursed travel, livestock and any other source that is directly controlled by the owner. Indirect emissions include all emissions that result from the use or purchase of a product. For instance, the direct emissions of an airline are all the jet fuel that is burned, while the indirect emissions include manufacture and disposal of airplanes, all the electricity used to operate the airline's office, and the daily emissions from employee travel to and from work. In another example, the power company has a direct emission of greenhouse gas, while the office that purchases it considers it an indirect emission.

Simplification of standards and definitionsEdit

Carbon neutral fuels are those that neither contribute to nor reduce the amount of carbon into the atmosphere. Before an agency can certify an organization or individual as carbon neutral, it is important to specify whether indirect emissions are included in the Carbon Footprint calculation.[14] Most Voluntary Carbon neutral certifiers such as Standard Carbon in the US, require both direct and indirect sources to be reduced and offset. As an example, for an organization to be certified carbon neutral by Standard Carbon, it must offset all direct and indirect emissions from travel by 1 lb CO2e per passenger mile, and all non-electricity direct emissions 100%.[15] Indirect electrical purchases must be equalized either with offsets, or renewable energy purchase. This standard differs slightly from the widely used World Resource Institute and may be easier to calculate and apply.

Much of the confusion in carbon neutral standards can be attributed to the number of voluntary carbon standards which are available. For organizations looking at which carbon offsets to purchase, knowing which standards are robust, credible and permanent is vital in choosing the right carbon offsets and projects to get involved in. Some of the main standards in the voluntary market include; The Verified Carbon Standard, The Gold Standard, The American Carbon Registry, The Climate Action Reserve, and Plan Vivo. In addition companies can purchase Certified Emission Reductions (CERs) which result from mitigated carbon emissions from UNFCCC approved projects for voluntary purposes. The concept of shared resources also reduces the volume of carbon a particular organization has to offset, with all upstream and downstream emissions the responsibility of other organizations or individuals. If all organizations and individuals were involved then this would not result in any double accounting.

Regarding terminology in UK and Ireland[citation needed], in December 2011 the Advertising Standards Authority (in an ASA decision which was upheld by its Independent Reviewer, Sir Hayden Phillips) controversially ruled that no manufactured product can be marketed as "zero carbon", because carbon was inevitably emitted during its manufacture. This decision was made in relation to a solar panel system whose embodied carbon was repaid during 1.2 years of use and it appears to mean that no buildings or manufactured products can legitimately be described as zero carbon in its jurisdiction.[16]


Being carbon neutral is increasingly seen as good corporate or state social responsibility and a growing list of corporations, cities and states are announcing dates for when they intend to become fully neutral. Many countries have also announced dates by which they want to be carbon neutral, with many of them targeting at the year 2050. The setting of an earlier date (i.e. 2025,[17] 2030,[18] 2045[19]) may be considered to send out a stronger signal internationally though.[20][21] Also, delaying to take significant reductions in greenhouse gas emissions is not financially seen as a good idea anyway.[22][23]

Companies and organizationsEdit

The original Climate Neutral Network was an Oregon-based non-profit organization founded by Sue Hall and incorporated in 1999 to persuade companies that being climate neutral was potentially cost saving as well as environmentally sustainable. It developed both the Climate Neutral Certification and Climate Cool brand name with key stakeholders such as the United States Environmental Protection Agency, The Nature Conservancy, the Rocky Mountain Institute, Conservation International, and the World Resources Institute and succeeded in enrolling the 2002 Winter Olympics to compensate for its associated greenhouse gas emissions.[24] The non-profit's web site as of March 2011, lists the organization as closing its doors and plans to continue the Climate Cool upon transfer to a new non-profit organization, unknown at this time.[25] The for-profit consulting firm Climate Neutral Business Network listed the same Sue Hall as CEO and many of the same companies who were participants in the original Climate Neutral Network as consulting clients.[26] Today, there are many companies and organizations that have developed other independent Carbon and Climate Neutral certifications and designations.

Few companies have actually attained Climate Neutral Certification, applying to a rigorous review process and establishing that they have achieved absolute net zero or better impact on the world's climate. Another reason that companies have difficulty in attaining the Climate Neutral Certification is due the lack clear guidelines on what it means to make a carbon neutral development.[27] Shaklee Corporation became the first Climate Neutral certified company in April 2000. The company employs a variety of investments, and offset activities, including tree-planting, use of solar energy, methane capture in abandoned mines and its manufacturing processes.[28] Climate Neutral Business Network states that it certified Dave Matthews Band's concert tour as Climate Neutral. The Christian Science Monitor criticized the use of NativeEnergy, a for-profit company that sells offset credits to businesses and celebrities like Dave Matthews.[29]

Salt Spring Coffee became carbon neutral by lowering emissions through reducing long-range trucking and using bio-diesel fuel in delivery trucks,[30] upgrading to energy efficient equipment and purchasing carbon offsets from its offset provider, Offsetters. The company claims to the first carbon neutral coffee sold in Canada.[31] Salt Spring Coffee was recognized by the David Suzuki Foundation in their 2010 report Doing Business in a New Climate.[32]

Some corporate examples of self-proclaimed carbon neutral and climate neutral initiatives include Dell,[33] Google,[34][35] HSBC,[36] ING Group,[37] PepsiCo, Sky,[38][39] Tesco,[40][41] Toronto-Dominion Bank,[42] Asos[43] and Bank of Montreal.[44]

Under the leadership of Secretary-General Ban Ki-moon, the United Nations pledged to work towards climate neutrality in December 2007. The United Nations Environment Programme (UNEP) announced it was becoming climate neutral in 2008 and established a Climate Neutral Network to promote the idea in February 2008.

Events such as the G8 Summit and organizations like the World Bank are also using offset schemes to become carbon neutral. Artists like The Rolling Stones and Pink Floyd have made albums or tours carbon neutral, while Live Earth says that its seven concerts held on 7 July 2007 were the largest carbon neutral public event in history.

The Vancouver 2010 Olympic and Paralympic Winter Games were the first carbon neutral Games in history [45] through a large partnership with the carbon offset provider, Offsetters.

Buildings are the largest single contributor to the production of greenhouse gases. The American Institute of Architects 2030 Commitment is a voluntary program for AIA member firms and other entities in the built environment that asks these organizations to pledge to design all their buildings to be carbon neutral by 2030.[46]

In 2010, architectural firm HOK worked with energy and daylighting consultant The Weidt Group to design a 170,735-square-foot (15,861.8 m2) net zero carbon emissions Class A office building prototype in St. Louis, Missouri, U.S.[47]

Countries and territoriesEdit

Two countries have achieved or surpassed carbon neutrality:

As of September 2020, numerous countries/territories have pledged carbon neutrality, including:[50][51]

Country/territory Target Source(s)
Year Status
  Austria 2040 Coalition agreement [51][52][53][54]
  Belgium 2050 Policy position [55]
  Canada 2050 Under discussion [56][57]
  China 2060 Policy position [58]
  Chile 2050 Under discussion [51]
  Colombia [59]
  Costa Rica 2050 Policy position [51]
  Denmark 2050 Law [51]
  Ethiopia 2025 or 2030 Policy position [60][61]
  European Union 2050 Political agreement [62][63]
  Fiji 2050 Pledged towards the Paris agreement [51]
  Finland 2035 Coalition agreement [51]
  France 2050 Law [51]
  Hungary 2050 Law [51]
  Iceland 2040 Policy position [51]
  Germany 2050 Law [51]
  Ireland 2050 Coalition agreement [51]
  Japan 2050–2100 Policy position [51]
  Luxembourg [64]
  Marshall Islands 2050 Pledged towards the Paris agreement [51]
  Mexico [65]
  Netherlands [66]
  New Zealand 2050 Law [51]
  Norway 2050 (actual)

2030 (offsets)

Policy position [51]
  Portugal 2050 Policy position [51]
  Scotland 2045 Law [67]
  Singapore 2050–2100 Submission to UNFCCC [51]
  Slovakia 2050 Policy position [51]
  South Africa 2050 Policy position [51]
  South Korea 2050 Policy position [51]
  Spain 2050 Law (draft) [51]
  Sweden 2045 Law [51][68]
   Switzerland 2050 Policy position [51]
  United Kingdom 2050 Law [51]
  Uruguay 2030 Pledged towards the Paris agreement [51]


In June 2011, the Canadian Province of British Columbia announced they had officially become the first provincial/state jurisdiction in North America to achieve carbon neutrality in public sector operations:[69] Every school, hospital, university, Crown corporation, and government office measured, reported, and purchased carbon offsets on all of their 2010 Greenhouse Gas emissions as required under legislation.[70] Local Governments across B.C. are also beginning to declare Carbon Neutrality,[71] including the Regional District of Mount Waddington on Vancouver Island, whose indoor ice arena, the Chilton Regional Arena, is now carbon neutral and rely on solely on electricity from flooding their ice to mowing the grass.[72] The province intends to accelerate the deployment of natural gas vehicles.[73] Under the LiveSmart BC initiative, natural gas furnaces and water heaters receive cash back thereby promoting the burning of fossil fuel in the province.[74] The province states that an important part of new natural gas production will come from the Horn River basin where about 500 million tonnes of CO2 will be released into the atmosphere.[75][76]

On September 24, 2019, Prime Minister Justin Trudeau pledged to make Canada carbon neutral by 2050 if re-elected.[77] On October 21, 2019, Trudeau was re-elected, and in December 2019, the Canadian government formally announced its goal for Canada to be carbon neutral by 2050.[57] In its speech from the throne, which was delivered on September 23, 2020, the federal government pledged to legislate its goal of making Canada carbon neutral by 2050.[78]

The city of Edmonton, Alberta is currently developing a carbon neutral community called Blatchford, on the grounds of its former City Centre Airport.[79]

Costa RicaEdit

Costa Rica aims to be fully carbon neutral by at least 2050.[80] There are plans to do it even faster, namely by 2021 (the 200th anniversary of its independence)[81] In 2004, 46.7% of Costa Rica's primary energy came from renewable sources,[82] while 94% of its electricity was generated from hydroelectric power, wind farms and geothermal energy in 2006.[83] A 3.5% tax on gasoline in the country is used for payments to compensate landowners for growing trees and protecting forests and its government is making further plans for reducing emissions from transport, farming and industry.

European UnionEdit

As of 2019 the EU has intermediate targets,[84] carbon neutrality was accepted by European Council on December 13, 2019.[85]


Samsø island in Denmark is the largest carbon-neutral settlement on the planet,[citation needed] with a population of 4200, based on wind-generated electricity and biomass-based district heating. They currently generate extra wind power and export the electricity to compensate for petro-fueled vehicles. There are future hopes of using electric or biofuel vehicles.[86][87][88]


On 27 June 2019, the French National Assembly voted into law the first article in a climate and energy package that sets goals for France to cut its greenhouse gas emissions and go carbon-neutral by 2050 in line with the 2015 Paris climate agreement.[89] This was approved by the French Senate on 18 July 2019.[90]


Iceland is also moving towards climate neutrality. Iceland generates over 99% of its electricity from renewable sources, namely hydroelectricity (approximately 80%) and geothermal (approximately 20%). No other nation uses such a high proportion of renewable energy resources.[91] Over 99% of electricity production and almost 80% of total energy production comes from hydropower and geothermal. In February 2008, Costa Rica, Iceland, New Zealand and Norway were the first four countries to join the Climate Neutral Network, an initiative led by the United Nations Environment Programme (UNEP) to catalyze global action towards low carbon economies and societies.[92]

Reykjavík aims to be carbon neutral by 2040.[93][94]


The ex-president of the Maldives has pledged to make his country carbon-neutral within a decade[when?] by moving to wind and solar energy. The Maldives, a country consisting of very low-lying islands, would be one of the first countries to be submerged due to sea level rise. The Maldives presided over the foundation of the Climate Vulnerable Forum.

New ZealandEdit

On November 7, 2019, New Zealand passed a bill requiring the country to be net zero for all greenhouse gases by 2050 (with the exception of biogenic methane, with plans to reduce that by 24%–47% below 2017 levels by 2050).[95][96][97]


On April 19, 2007, Prime Minister Jens Stoltenberg announced to the Labour Party annual congress that Norway's greenhouse gas emissions would be cut by 10 percent more than its Kyoto commitment by 2012, and that the government had agreed to achieve emission cuts of 30% by 2020. He also proposed that Norway should become carbon neutral by 2050, and called upon other rich countries to do likewise.[98] This carbon neutrality would be achieved partly by carbon offsetting, a proposal criticised by Greenpeace, who also called on Norway to take responsibility for the 500m tonnes of emissions caused by its exports of oil and gas.[99] World Wildlife Fund Norway also believes that the purchase of carbon offsets is unacceptable, saying 'it is a political stillbirth to believe that China will quietly accept that Norway will buy climate quotas abroad'.[100] The Norwegian environmental activist Bellona Foundation believes that the prime minister was forced to act due to pressure from anti-European Union members of the coalition government, and called the announcement 'visions without content'.[100] In January 2008 the Norwegian government went a step further and declared a goal of being carbon neutral by 2030. But the government has not been specific about any plans to reduce emissions at home; the plan is based on buying carbon offsets from other countries, and very little has actually been done to reduce Norway's emissions, apart from a very successful policy for electric vehicles[101]


In Spain, in 2014, the island of El Hierro became carbon neutral (for its power production).[102][103] Also, the city of Logroño Montecorvo in La Rioja will be carbon neutral once completed.[104][105]


Sweden aims to become carbon neutral by 2045.[106] The vision is that net greenhouse gas emissions should be zero. The overall objective is that the increase in global temperature should be limited to two degrees, and that the concentration of greenhouse gases in the atmosphere stabilizes at a maximum of 400 ppm.[107]

South KoreaEdit

Jeju Island aims to be carbon neutral by 2030.[108]

Vatican CityEdit

In July 2007, Vatican City announced a plan to become the first carbon-neutral state in the world, following the politics of the Pope to eliminate global warming. The goal would be reached through the donation of the Vatican Climate Forest in Hungary. The forest is to be sized to offset the year's carbon dioxide emissions.[109] However, no trees have actually been planted As of 2008.[110] The company KlimaFa is no longer in existence and hasn't fulfilled its promises.[111] In November 2008, the city state also installed and put into operation 2,400 solar panels on the roof of the Paul VI Centre audience hall.[112]

United KingdomEdit

As recommended by the Committee on Climate Change (CCC) the government has legally committed to net zero greenhouse gas emissions by the United Kingdom by 2050[113] and the Energy and Climate Intelligence Unit (ECIU) has said it would be affordable. A range of techniques will be required including carbon sinks (greenhouse gas removal) in order to counterbalance emissions from agriculture and aviation. These carbon sinks might include reforestation, habitat restoration, soil carbon sequestration, bioenergy with carbon capture and storage and even direct air capture.[114] The UK government has recently linked attainment of net zero targets as a potential mechanism for improved air quality as a co-benefit.[115]


Scotland has set a 2045 target.[116] The islands of Orkney have significant wind and marine energy resources, and renewable energy has recently come into prominence. Although Orkney is connected to the mainland, it generates over 100% of its net power from renewables.[117] This comes mainly from wind turbines situated right across Orkney

Carbon neutral initiativesEdit

Many initiatives seek to assist individuals, businesses and states in reducing their carbon footprint or achieving climate neutrality. These include


Although there is currently no international certification scheme for carbon or climate neutrality, some countries have established national certification schemes. Examples include Norwegian Eco-Lighthouse Program and the Australian government's National Carbon Offset Standard (NCOS). In the private sector, organisations such as ClimatePartner can, for a fee, allow companies from many sectors to offset their carbon emissions using techniques like reforestation. These companies can then claim climate neutral status and even use the title online.[118] However, there is no international clarity around these certifications and their validity.

Certifications are also available from the CEB,[119] BSI (PAS 2060) and The CarbonNeutral Company (CarbonNeutral).[120]

See alsoEdit

Notes and referencesEdit

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