Professor Ian Dunham
Assignment – Making Sense of Carbon Neutral and Net Zero
Background: The phrases “carbon neutral,” “net zero,” and “climate neutral” are used by a variety of actors to describe a variety of activities and targets aimed at reducing greenhouse gas (GHG) emissions (e.g., in sustainability reports, pledges to reduce CO2, and as a marketing strategy). However, a great deal of skepticism has arisen as to the meaning of the phrases. This assignment will allow you to familiarize with various relevant relevant aspects of GHG reduction strategies. Please follow the steps below and answer the questions at the end of the document. Upload your saved document to Canvas once you are finished.
First, it is necessary to define some basic terms. Carbon neutrality refers to a company effectively reaching a state where their emissions activities are net neutral. However, the term generally entails achieving the goal of balancing CO2 emitting activities only, and not addressing other GHGs covered by the Kyoto Protocol, including methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3). In addition, carbon neutrality may be achieved through both reducing a company’s actual CO2 emissions, as well as through the practice of carbon offsetting.
Broadly defined, carbon offsetting is any activity that leads to a reduction in CO2 to compensate for emissions generated elsewhere. More specifically, carbon offset credits are certificates that represent the reduction of CO2 in the atmosphere (e.g., one metric ton of CO2 emissions). Carbon offsets are generated and sold by third-party vendors that engage in activities including planting new trees, investing in renewable energy, or through other means of carbon capture and storage that remove CO2 from the atmosphere. Project developers sell offsets to help finance GHG reduction projects.
The term Net Zero refers to a more stringent form of corporate climate action. There are two distinguishing factors between the the terms carbon neutrality and net zero. First, net zero refers to a reduction in ALL greenhouse gas emissions, not simply CO2. Secondly, net zero does not permit the usage of offset credits. Instead, net zero requires reductions through means including efficiency, electrification, renewable energy, etc. Therefore, a key difference between the two terms is that a company can, hypothetically, claim carbon neutrality by measuring its emissions and then offsetting the balance through financed projects outside of its value chain, without actually reducing its own emissions.
As a first step in achieving carbon neutral and net zero and targets, companies must first assess their GHG emissions. Suppliers of carbon offsets may assist companies in calculating their Corporate Carbon Footprint (CCF) through a process known as greenhouse gas accounting, emissions accounting, or carbon accounting. We may get some insight as to how this process works by calculating our own carbon footprints. To do this, navigate to the Terrapass carbon footprint calculator website at
and select “Individual Calculator.” As accurately as possible, enter details about your vehicle, transportation, and home energy use. After you complete the assessment, you will find “Your Carbon Dashboard” on the final page (note that you do not have to enter your email address to view your results). Select “Buy Offsets” at the bottom right and note the purchase price to offset your annual carbon emissions (note that you are not required to actually purchase offset credits, Lol).
Companies such as
Terrapass and others are in the business of helping companies calculate their carbon footprints and then purchasing offset credits. However, as companies and individuals seek to offset CO2 producing activities through the purchase of carbon offsets, there is increasing scrutiny over various aspects of carbon offsetting. Questions have arisen as to the type and quality of projects offered, the transparency of the providers’ operations, and if the projects are third-party verified. When choosing a carbon offset program, it’s important to validate that the program is striving to meet the highest standards in the industry. For example, Terrapass uses the Verified Carbon Standard, Gold Standard, American Carbon Registry, CSA Group, and the Climate Action Reserve certifications. You can learn more about project standards and specific projects that Terrapass invests in to generate offset credits at their webpage here:
In order to learn more about the potential complications in carbon offsetting, please watch the film titled “What Does Climate Neutral Mean?” (27:30) on YouTube:
Next, we will examine and compare company approaches at meaningfully cutting net GHG emissions to zero. Navigate to the
NetZero Tracker website at:
This website was developed by the University of Oxford and other affiliates to assess the climate pledges of companies. Once on the page, scroll down to “Companies” and have a look at the various companies included in their assessment. Green indicates that a company is a leader, yellow indicates moderate performance, while red represents failure or lack of information. Take a detailed look at the companies Amazon and Alphabet on the NetZero website and consider how each of the companies is ranked and why.
The company sustainability reports for Amazon and Alphabet (Google) may be found on Canvas. Open the company reports and read closely. When you have completed the above tasks, answer the questions below.
Questions:
1. On the TerraPass carbon footprint calculator website, how many total annual pounds of CO2 equivalent do you produce?
2. What is the price that Terrapass provides to offset your annual CO2 emissions?
3. In the film What Does Climate Neutral Mean?, what are three potentially problems/challenges to companies using the term climate neutral and/or the climate neutral label on their products?
4. In the sustainability reports of Amazon and Google (included on Canvas), do the companies make a specific climate neutral or net zero pledge? If so, what are the details?
5. How do Amazon and Google propose to achieve CO2 or GHG emissions reductions?
6. Do you think that each company can ever actually achieve net zero? Do you see the potential for corporate greenwashing when companies use these terms?
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