Carbon Neutral vs Carbon Zero - What's the difference?

With so many policies, recommendations and targets being discussed in the news, politics and the industry, it can be overwhelming. When it comes to improving environmental performance, the less complicated, the better; without a clear explanation, efforts can be counterintuitive.

At amBX, we’re here to help simplify the message and clearly explain all you need to know. The more businesses that understand the available options, guidelines and laws, the higher the uptake and better the result. 

In the built environment, we have collective targets regarding carbon emissions and the performance of our buildings and cities. Cities account for 70% of the world’s emissions, a huge number that we must reduce. 

So, what is carbon neutrality?

Carbon neutrality is sometimes labelled a quick fix or associated with cutting corners. While being carbon neutral is better than no attempt to manage your environmental impact, it means that a company is aware of how much carbon they are emitting, and they are offsetting it to remove the same amount of Co2 from the atmosphere, e.g. by planting trees, recycling or investing in green energy. This allows the company to achieve neutrality as the same amount they emit is effectively removed from other areas. However, while this is a step in the right direction, this is not going to solve the climate crisis. 

What is carbon zero?

Carbon zero differs because it is viewed as more challenging for companies to achieve, but by 2050 we have a collective goal to achieve net zero regardless of how challenging it may be. To be carbon zero, a company must reduce its emissions by 90-95% (dependent on the sector); this is an absolute reduction in emissions compared to the company’s base year. The last 5-10% must then be offset using more permanent methods such as direct air capture. 

So, while carbon neutrality stops a company’s environmental performance from getting any worse, it will not reduce its impact and will not be enough to mitigate the effects of climate change. To be net zero, companies must make a real effort to reduce carbon through various methods across their business. They need to review both operational and embodied carbon, understand their current performance and implement a thorough improvement strategy to dramatically reduce their environmental impact. 

Here at amBX, we are passionate about enabling companies to achieve net zero. Our software-only solutions help combat climate change through our energy management digital twin architecture. It also simulates and role plays changes before they are applied to a physical asset. Our open architecture ensures all systems and devices are connected to allow data to be fully utilised, aggregated and sent to a single source. The flexible solution is extremely cost-effective and can form part of a wider building management solution creating a holistic approach for maximum impact. 

Click here to discover more about our ESG Solution. 

amBX LtdESG