As extreme weather conditions become more common, including fires, floods, heat waves and droughts, concerns about climate change are growing around the world. As a result, many governments, companies, organizations and individuals are working to reduce and offset greenhouse gas emissions to mitigate the climate crisis.
Nearly 40 percent of Fortune 500 companies now have net zero carbon emission targets, but details, such as timelines, vary widely. For example, Apple is committed to achieving carbon neutrality for its supply chain and products by 2030, while Amazon and General Motors have targets for 2040. There are many steps that individuals, corporations and countries can take to reduce carbon emissions, such as using electric or plug-in hybrid vehicles and renewable energy.
However, many people need clarification on the terminology of carbon neutrality, greenhouse gas emissions and carbon capture, and understanding this topic is helpful for clean energy professionals. As customers look for ways to reduce fossil fuel consumption, there is an increased demand for electric vehicle charging infrastructure and solar energy systems. Understanding the various terms associated with being carbon neutral and the best strategies to achieve this goal can help electric vehicle and renewable energy specialists stand out as clean energy experts.
What is carbon neutrality?
Many human activities emit carbon dioxide, such as travel, production of goods and energy consumption. In fact, 85% of man-made carbon dioxide emissions come from burning fossil fuels such as coal, oil and natural gas. Thus, many human activities use fossil fuels, such as heating and cooling buildings, manufacturing products, transporting materials, growing crops and extracting minerals.
However, there are also carbon sinks around the world – places that naturally absorb more carbon dioxide from the atmosphere than they emit. These areas can have a negative carbon balance. Forests, oceans and soils are carbon sinks that remove and capture atmospheric carbon. Climate experts estimate that natural sinks remove between 9.5 and 11 gigatons of carbon dioxide each year. However, annual global carbon dioxide emissions were 37.8 gigatons in 2021.
Carbon neutrality is the point at which carbon emitted and carbon absorbed are in balance. To reduce the amount of carbon dioxide in the atmosphere, some companies and scientists are working on carbon sequestration projects that capture and store atmospheric carbon.
Achieving carbon neutrality requires finding a balance between carbon dioxide emissions and absorption by carbon sinks. Most companies striving to achieve carbon neutrality measure their carbon footprint, implement emission reductions whenever possible, and offset remaining emissions.
What are Scope 1, 2 and 3 carbon emissions?
Scope 1 emissions come from the company’s facilities and vehicles, and Scope 2 emissions are indirect emissions from the production of purchased energy. Scope 3 emissions are indirect emissions that include employee commuting, business travel, purchased goods and services, and more. Scope 3 emissions include many supplier and customer-related activities and can be the most difficult to calculate.
What is the difference between carbon neutrality and net zero emissions?
Carbon neutrality and net zero emissions are terms that refer to climate action to mitigate global warming, but they have different meanings.
- Carbon neutrality often refers only to Scope 1 and 2 emissions, but not necessarily Scope 3, and may refer only to a specific product or service. In addition, carbon neutrality often refers only to carbon dioxide emissions and not other greenhouse gases such as methane and nitrous oxide.
- Net zero targets are similar to carbon neutrality, but are larger in scale. They include Scope 1, 2 and 3 emissions and cover the entire organization, not just a specific product or service. In addition, net zero applies to multiple greenhouse gases, not just carbon dioxide emissions.
Carbon Neutral vs. Climate Neutral.
Another popular term related to sustainability and CO2 emissions is climate neutrality. It is similar to carbon neutrality, but includes all greenhouse gas emissions, not just carbon dioxide. Like carbon neutrality, climate-neutral goals often involve increased energy efficiency and the use of cleaner energy sources.
How do companies become carbon neutral?
Achieving carbon neutrality first requires measuring Scope 1 and 2 carbon emissions, and preferably Scope 3. Since the vast majority of carbon emissions come from burning fossil fuels, it is critical to develop a strategy to reduce the direct and indirect use of fossil fuels. Improving energy efficiency and switching to renewable energy are excellent ways to achieve this goal.
Some companies’ energy efficiency measures involve using ocean freight instead of air freight to transport goods over long distances. Other companies are constructing energy-efficient buildings and using low-carbon materials.
What are carbon offsets?
Carbon offsets, also known as carbon credits, finance projects that reduce, avoid or remove atmospheric carbon or equivalent greenhouse gases and help mitigate climate change. Carbon offset projects are verified activities that promote environmental protection, energy efficiency and renewable energy production.
Common approaches include reforestation initiatives, construction of wind or solar farms, and agricultural practices involving carbon storage. Carbon offsets help organizations reduce their carbon footprint through financial contributions. Owners of carbon offset projects can sell carbon credits to these organizations. Therefore, carbon offsetting can create a mechanism for financing carbon removal projects that otherwise could not be implemented.
However, there are also some potential concerns with carbon offsetting. One challenge is that they must be able to verify that they benefit the environment and produce value. Another concern is that companies may simply pay money to buy carbon credits, rather than working to reduce their own carbon emissions and environmental impact. This could lead to “greenwashing,” in which companies would continue to emit large amounts of carbon dioxide, and yet could claim to be carbon neutral.
Electric vehicles and carbon emissions.
As the world transitions to clean energy sources, transportation electrification can help organizations achieve net zero emissions or carbon neutrality by minimizing the use of fossil fuels. In particular, electrification of vehicle fleets helps reduce Scope 1 carbon emissions because electric vehicles save oil and emit no greenhouse gases.
However, companies must include the production of electricity used to power electric vehicles in their Scope 2 emissions, so electric vehicles and renewable energy are a perfect combination. Similarly, when employees drive electric vehicles, they can help reduce Scope 3 carbon emissions from commuting. Therefore, encouraging employees to commute to work in electric vehicles can help achieve net zero emissions goals. In addition, when corporations in the supply chain use electric vehicles powered by renewable energy, they help reduce Scope 3 emissions associated with transportation and distribution.
As companies transition from fleets with internal combustion engines to electric vehicles to reduce emissions and protect the environment, proper charging infrastructure is critical. Electric vehicle charging station installers help companies charge their EV fleets and employee vehicles. However, obtaining the engineering seals and required permit drawings can be a challenge, especially if EV professionals don’t have the time, qualifications or skills to do it themselves.
Carbon neutrality is the concept that organizations can achieve a balance between the CO2 they produce and the amount they or other organizations can regenerate or recover. This is an important piece of the climate change puzzle that solar and electric vehicle specialists should be aware of.