What’s the Difference Between Carbon Neutral, Carbon Negative, and Net-Zero?
These three terms are often used interchangeably—but they mean different things. Understanding the distinctions is key to setting credible climate goals and communicating them clearly.
Carbon Neutral
Definition: Achieving a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks.
How it works: A company or product is considered carbon neutral when it offsets its emissions by investing in projects that remove or reduce an equivalent amount of carbon—such as reforestation, renewable energy, or carbon capture.
Example: A business emits 1,000 tons of CO₂ and purchases offsets that remove 1,000 tons from the atmosphere.
Net-Zero
Definition: Reducing greenhouse gas emissions to as close to zero as possible, with any remaining emissions neutralized through permanent removal.
How it works: Net-zero goes beyond offsetting. It requires deep decarbonization across operations and supply chains, with residual emissions removed through technologies like direct air capture or nature-based solutions.
Example: A company cuts emissions by 90% and removes the remaining 10% through verified carbon removal projects.
Key distinction: Net-zero is more ambitious than carbon neutral—it prioritizes emissions reduction first, then removal, not just offsetting.
Carbon Negative (or Climate Positive)
Definition: Going beyond net-zero by removing more carbon from the atmosphere than is emitted.
How it works: A carbon negative company actively contributes to reversing climate change by removing more CO₂ than it produces—through innovations like biochar, enhanced weathering, or large-scale reforestation.
Example: A company emits 500 tons of CO₂ but removes 700 tons through verified carbon removal projects.
Why It Matters
Carbon Neutral is often a starting point.
Net-Zero is the standard for long-term climate alignment.
Carbon Negative is the frontier of climate leadership.
