Carbon Neutral & Other Footprint Essential Terms

Most people would agree that businesses achieving a carbon-neutral footprint is an essential part of climate action.

But what does that mean and how can a business owner get there?

By learning the basics around these concepts, you'll be well on your way to making informed decisions that reduce your environmental impact.

In this introductory guide, we'll cover key definitions, explain the differences between related terms, discuss the importance of measurement and certification, and provide an overview of strategies organisations and governments can use to work toward carbon neutrality.**

Introduction to Carbon Neutrality and the Carbon Neutral Footprint

This section provides an overview of what it means for a company to be carbon neutral, outlines the historic importance of carbon neutrality, and introduces some key concepts related to carbon footprints.

Defining Carbon Neutrality and the Carbon Neutral Footprint

Carbon neutrality refers to balancing emitted greenhouse gases with equivalent amounts of sequestered carbon or offsets. A carbon-neutral footprint measures a company's total greenhouse gas emissions across all its operations and the entire supply chain.

Historically, to achieve carbon neutrality, a company must have:

Measured its carbon footprint
Reduced emissions as much as possible
Offset remaining emissions by purchasing carbon credits that fund emission reduction projects

Why is Carbon Neutrality Important for Climate Action

As climate change accelerates, carbon neutrality has been an essential sustainability goal for companies seeking to reduce their environmental impact. Reasons why carbon neutrality matters include:

Preventing further global temperature rise in line with Paris Agreement goals
Transitioning economies away from fossil fuels towards renewable energy
Incentivising development of low-carbon technologies and nature-based solutions
Meeting stakeholder demands and regulatory requirements around climate action
Gaining a competitive advantage and a positive brand reputation

However, carbon-neutral claims have more recently gone out of favour, with some companies making little effort to reduce the emissions, merely purchasing offsets in line with their footprint. With such an exploding quantity of carbon-neutral claims, in 2023 The Carbon Trust, retired issuance of their Carbon Neutral Certification, in favour of promoting more holistic Net-Zero decarbonisation pathways.

Carbon Neutral vs Net Zero: Understanding the Differences

While often used interchangeably, some key differences exist between carbon neutral and net zero:

Carbon neutral balances only carbon dioxide emissions, while net zero includes all greenhouse gases
Carbon neutral can be achieved through offsets alone. Net zero requires reducing value chain emissions aligned to 1.5°C pathways
Carbon neutral has more flexibility on offset quality. Net zero demands high-quality, permanent carbon removals
Carbon neutral focuses more on communications, while net zero relates to complex science-based target-setting

So while carbon neutrality relies more on offsets, net zero necessitates comprehensive decarbonisation across operations and supply chains.

What is a carbon-neutral carbon footprint?

A carbon-neutral footprint refers to balancing the amount of carbon released with the amount sequestered or offset. This state of carbon neutrality is reached when an individual, company, or country's carbon emissions are effectively ‘neutralised’ and do not contribute further to the overall level of greenhouse gases in the atmosphere.

Some key aspects of a carbon neutral footprint include:

Measuring carbon emissions: The first step is to accurately measure and account for all greenhouse gas emissions from operations, supply chains, transportation, energy use, etc. This determines the carbon footprint that needs to be addressed.
Reducing emissions: Companies and countries work to cut emissions through improving energy efficiency, switching to renewable power, electrifying processes, and other carbon reduction strategies aligned with climate goals. These efforts directly decrease the carbon footprint.
Offsetting remaining emissions: After reducing emissions as much as possible, the remaining unavoidable emissions can be counterbalanced by purchasing carbon credits which represent emission savings from renewable energy or carbon removal projects. Offsets enable the entity to neutralise its residual impact.
Renewing commitment: Carbon neutrality must be continually maintained year after year through measuring, reducing, and offsetting emissions. As programs expand globally, more entities are committing to sustained carbon neutral operations.

Achieving carbon neutrality has become an important sustainability benchmark for countries, cities, and companies leading climate action. By quantifying total greenhouse gas impact and taking steps to completely neutralise it, carbon neutral entities demonstrate climate responsibility and leadership.

What is a carbon zero footprint?

A carbon zero footprint refers to reducing all carbon emissions to zero across all business operations and supply chains.

To attain carbon zero footprint status, organisations must:

Measure their greenhouse gas emissions across all operations and supply chains. This determines their carbon footprint.
Reduce emissions as much as possible, through energy efficiency improvements, renewable energy, process innovations, and other carbon reduction strategies.
Offset remaining emissions, supporting projects that remove carbon from the atmosphere equivalent to the organisation's residual emissions. Qualified projects include reforestation, renewable energy, methane capture, etc.

Globally, momentum is building behind carbon zero footprint goals in the public and private sectors. Over 13,000 companies + countries have pledged to reduce their emissions across all scopes in line with the Paris Agreement as part of the Race to Zero.

Reaching a true carbon zero footprint requires credible carbon measurement methodologies and high-quality, verified offsets. Organisations must commit to robust emissions reductions while using offsets judiciously. Done right, carbon zero footprint aligns sustainability with business growth for climate-friendly futures.

What are the 4 main carbon footprint categories?

The major contributors to carbon footprints can be grouped into four main categories:

Food

The production, transportation, storage, and consumption of food make up a significant portion of individual and business carbon footprints. Key factors influencing the carbon footprint of food include:

Agriculture and farming practices like fertilizer usage, livestock emissions, and deforestation for croplands
Food processing and manufacturing
Transportation of ingredients and final products
Refrigeration and freezing to preserve foods
Waste from spoilage, over-ordering, or unused ingredients

Switching to organic, local, seasonal food and reducing waste can help lower emissions.

Consumption

The goods and services businesses and individuals purchase also carry embodied carbon emissions from their production and distribution. Some major consumption categories contributing to carbon footprints:

Clothing and textiles
Paper products
Cleaning supplies
Furniture and appliances
Electronics
Building materials

Choosing used, recycled, or sustainably-sourced consumer goods can significantly cut carbon footprints.

Transportation

Transportation including commutes, business travel, shipping, and product distribution accounts for a large share of carbon emissions. Major sources of transportation emissions include:

Personal vehicles like cars, SUVs, and light trucks
Public transport like trains, buses, and aeroplanes
Freight trucks, ships, and aviation

Alternatives like walking, biking, public transit, carpooling, and EVs can reduce transportation footprints.

Household Energy

Heating, cooling, lighting, and powering homes and business facilities is another key contributor. Primary causes of energy-related emissions:

Electricity from fossil fuel sources like coal and natural gas
Natural gas heating systems
Other heating fuels like fuel oil, propane, and wood
Air conditioning and refrigeration

Improving insulation, upgrading to renewable energy, and enhancing energy efficiency can lessen energy-related footprints.

What is the difference between carbon neutral and carbon zero?

The key difference between carbon neutral and carbon zero lies in the emissions they produce.

Carbon zero refers to no carbon emissions being produced at all. This means a company or activity is not generating any greenhouse gas emissions that contribute to climate change. On the other hand, carbon neutral allows for some carbon emissions to be generated, but offsets those emissions through purchasing carbon credits or investing in greenhouse gas reduction projects.

To break this down:

Carbon Zero

Produces zero carbon emissions
Eliminates all sources of greenhouse gas emissions
Often difficult and expensive to fully achieve

Carbon Neutral

Produces some carbon emissions
Offsets emissions produced through carbon credits or emission reduction projects
More achievable for many organizations

For example, a company may purchase renewable energy to power their offices and manufacturing plants to reduce emissions. However, some processes may still generate greenhouse gases. To reach carbon neutral status, they invest in protecting rainforests or funding clean cookstoves in developing countries to counteract their remaining emissions. The net result is zero emissions, even if some emissions were initially produced.

Reaching complete carbon zero status often requires significant changes that may not be currently possible, like fully transitioning all operations to renewable energy. Carbon neutrality allows organizations to offset what they cannot yet eliminate internally, supporting emissions reduction globally while pursuing internal reductions over time. This makes carbon neutral a more accessible sustainability goal for many on the path towards eventually reaching carbon zero.

The Path to Carbon Neutral: Measuring and Managing Corporate Carbon Footprints

Companies seeking to achieve carbon neutrality must first understand their overall climate impact by measuring corporate carbon footprints. This involves quantifying greenhouse gas (GHG) emissions from operations, supply chains, and the use of sold products.

What Does Carbon Neutral Mean for a Company: Setting Organisational Boundaries

Defining the scope of emissions accounting is the initial step for carbon neutral companies. This determines which facilities, operations, and value chains are included when tallying a firm's total climate footprint. Companies should account for:

Direct emissions from sources they own and control, like factories and vehicle fleets
Indirect emissions from purchased electricity and heat
Upstream and downstream emissions across global supply chains and distribution networks

Narrower boundaries focusing only on direct operations make carbon neutrality easier to attain but fail to address the bulk of most companies' actual impact.

Measuring Direct and Indirect Emissions for Carbon Neutral Companies

In addition to defining organizational boundaries, carbon neutral businesses must implement robust GHG measurement methodologies. This quantifies emissions from:

Stationary combustion from on-site equipment and generators
Mobile combustion from corporate fleets
Purchased fuels and electricity
Refrigerants and industrial gases
On-site landfills and wastewater processing
Agriculture, land use changes, and forestry associated with company-owned land

Various international standards guide corporate GHG inventories, such as the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.

Analysing Supply Chain Impacts on Carbon Footprints

For most companies, supply chain emissions from sourcing raw materials to distributing finished products dwarf their operational carbon footprint. A comprehensive corporate GHG inventory includes:

Extraction and production of purchased goods and services
Transportation and distribution between tier-one suppliers and end consumers
Use phase emissions from sold products

Life cycle assessment tools can map emissions hotspots across complex global value chains and process maps. This data then informs carbon reduction strategies.

To reach net-zero, companies must aggressively cut emissions from operations and supply chains. Offsetting remaining emissions can help firms attain carbon neutrality while transitioning their business models. Robust carbon accounting enables data-driven decisions towards science-based climate targets.

Emission Reduction Strategies Toward a Carbon-Neutral Footprint

This section provides an overview of practices for cutting carbon footprints before offsetting remaining emissions.

Improving Energy Efficiency for Emissions Reduction

Improving energy efficiency is one of the most cost-effective ways for companies to reduce their carbon emissions. Simple upgrades to equipment, facilities, and processes can significantly cut energy waste and lower a company's carbon footprint.

Some examples of energy efficiency improvements include:

Upgrading to ENERGY STAR certified appliances and equipment
Installing LED lighting and smart lighting controls
Adding insulation and sealing air leaks in buildings
Implementing an energy management system to monitor usage
Optimising heating/cooling equipment through regular maintenance

Investing in energy efficiency reduces operational costs over time, and also helps companies make progress towards carbon neutrality goals before considering carbon offsets. The less energy used, the lower the emissions.

Transitioning to Renewable Energy in the Pursuit of Carbon Neutrality

Transitioning to renewable energy sources is another impactful way companies can reduce their reliance on fossil fuels and associated carbon emissions. Many companies are signing direct contracts with solar, wind, or other renewable electricity providers to power a portion of their operations.

Additionally, utility green power programs allow companies to opt into sourcing their electricity from renewable generation on the grid, offsetting their conventional energy use. As more grids add renewable capacity, this option becomes more viable for carbon reduction.

Some examples of procuring renewable energy include:

Installing on-site solar photovoltaics
Entering into a power purchase agreement (PPA) for off-site renewable energy
Opting for a renewable energy plan from an energy retailer
Purchasing renewable energy certificates (RECs)

Shifting more energy consumption to renewables helps organizations make tangible emissions cuts today while supporting the growth of clean energy.

Rethinking Materials and Supply Chains for Carbon Neutral Examples

In addition to energy initiatives, companies pursuing carbon neutrality also look at their materials, procurement, and distribution through a climate lens.

Collaborating with vendors to promote sustainable sourcing and transportation options can significantly reduce emissions from making and shipping products. This includes:

Choosing recycled/upcycled materials
Seeking local suppliers to shorten transport miles
Using fuel-efficient fleets for delivery
Optimizing logistics networks
Transitioning to electric vehicles
Exploring lower-carbon alternatives

Rethinking supply chain impacts can uncover creative ways for companies to lower their carbon footprints. Setting science-based emissions targets helps guide these efforts industry-wide.

Offsetting Residual Emissions through Carbon Offset Projects

Once emissions have been reduced, high-quality carbon offsets can help balance out a company's remaining carbon footprint. Offsetting involves investing in projects that reduce, avoid, or remove emissions elsewhere to counterbalance what cannot yet be eliminated from your own operations.

Understanding Carbon Offset Types and VCS Offsetting

There are several major categories of carbon offset projects:

Renewable energy - Supporting the development of solar, wind, geothermal and other renewable energy sources that displace fossil fuel-based power generation. This avoids future CO2 emissions.
Forestry and land use - Funding reforestation programs or helping prevent deforestation. As trees grow, they remove CO2 from the atmosphere through photosynthesis. Maintaining forests also preserves existing carbon storage capacity.
Carbon capture and storage - Capturing CO2 emissions at their source and securely storing them underground to prevent their release. Direct air capture technologies can also filter CO2 directly from ambient air.
Efficiency and fuel switching - Upgrading equipment and processes to be more energy efficient, or transitioning to less carbon-intensive fuel sources. This directly avoids emissions.

A key consideration is choosing a verification standard to ensure offset quality. Leading standards include the Verified Carbon Standard (VCS) and the Gold Standard. The VCS has specific requirements for assessing projects, quantifying emission reductions, ensuring permanence, avoiding double counting through registration and retirement of credits in a transparent registry system.

Choosing Credible Carbon Neutral Certification and Offset Programs

With many offset providers available, it's important to select reputable certification bodies and programs. Key organizations to look for include:

Gold Standard - Widely considered the highest quality standard for carbon offsets and renewable energy projects. Known for strict criteria and monitoring.
Verra - Administrator of the VCS standard outlined above. Provides a transparent framework for validating and verifying offset projects.
Climate Action Reserve (CAR) - High-quality standard for North American carbon offset projects, known for scientific rigour.
American Carbon Registry (ACR) - Early pioneer of carbon offset standards with over 25 years of experience ensuring offset integrity.

Review certification criteria, project eligibility rules, monitoring and verification procedures, and registry systems to ensure credibility.

Designing an Offset Portfolio with Reforestation and Renewable Projects

Companies can mix different offset project types and geographies to create a balanced portfolio aligned with carbon reduction goals and priorities:

Reforestation offers cost-effective CO2 removal capacity while supporting local communities and ecosystems.
Renewable energy helps accelerate the transition away from fossil fuels to address the root cause of emissions.
Blending project locations spreads impact and risk. Aim for a diverse portfolio.
Set impact targets - e.g. support projects with clear sustainable development and social benefits.
Manage project mix based on budget considerations and price per ton of CO2 mitigated.

Integrate carbon offsets strategically alongside in-house emissions reductions to achieve carbon neutrality commitments.

Achieving Carbon Neutral Certification for Corporate Responsibility

To demonstrate carbon neutrality, companies can obtain third-party certification through programs like CarbonNeutral and ClimateNeutral. These programs verify that a company has measured its carbon footprint, implemented emission reduction strategies, and offset any remaining emissions through certified carbon credits.

Key Certification Requirements for a Carbon Neutral Footprint

To achieve carbon neutral certification, companies must:

Set organisational and operational boundaries to account for emissions
Use accepted greenhouse gas accounting methods
Commit to reducing emissions year-over-year
Offset any remaining emissions annually using certified credits
Provide third-party verification of emissions inventories and offset purchases

Most programs also require companies to have a public-facing carbon neutral commitment statement.

Navigating the Carbon Neutral Certification Process

The certification process generally involves:

Conducting a greenhouse gas emissions inventory audit
Identifying opportunities to reduce emissions through energy efficiency, renewable energy, etc.
Calculating total emissions that cannot be reduced operationally
Purchasing eligible third-party verified carbon offsets for residual emissions
Submitting inventory and offset documentation for independent verification
Upon approval, gaining rights to use the certifying body's carbon neutral trademark

The process takes between 3-6 months and certification must be renewed annually through re-verification.

Promoting Your Carbon Neutral Certification and Climate Commitment

Once certified, companies can promote their carbon neutral status on websites, product packaging, annual reports and other media. This allows companies to:

Enhance brand reputation with climate-conscious consumers
Meet investor expectations for climate risk reporting
Comply with carbon neutral tenders and RFPs
Motivate employees through ethical corporate responsibility

Carbon neutral certification provides an independent stamp of approval for companies to demonstrate their commitment to sustainability.

Carbon Neutral Countries and Their Climate Policies

Global Standards and Agreements: Paris Agreement and European Green Deal

The Paris Agreement, adopted in 2015, aims to limit global warming to well below 2°C above pre-industrial levels. Countries submit Nationally Determined Contributions (NDCs) outlining emissions reductions targets and climate actions. The agreement also established a transparency framework to track progress.

The European Union unveiled the European Green Deal in 2019, a set of policy initiatives to achieve climate neutrality in the EU by 2050. Key elements include:

Increasing the EU emissions reduction target for 2030 from 40% to at least 55% below 1990 levels
Expanding the EU Emissions Trading System (ETS)
Introducing a Carbon Border Adjustment Mechanism
Setting more ambitious CO2 emissions standards for vehicles
Promoting renewable energy and improving energy efficiency

These international agreements create obligations and incentives for countries to transition to low-carbon economies and pursue carbon neutrality.

National Strategies and Carbon Neutrality in the United States

The United States aims to achieve net-zero emissions economy-wide by no later than 2050 under the Biden administration. Policies and measures include:

Rejoining the Paris Agreement and setting an NDC target to reduce emissions 50-52% below 2005 levels by 2030
Proposing a Clean Electricity Standard that would require a carbon-free power grid by 2035
Investing in renewable energy infrastructure and transmission
Phasing down hydrofluorocarbons and methane emissions
Incentivising carbon removal methods such as direct air capture

Over 170 U.S. cities have joined the Carbon Neutral Cities Alliance, committing to 80-100% emissions reductions by 2050 or sooner. Cities are creating climate action plans targeting areas like renewable energy, electric vehicles, and green buildings.

The Role of Carbon Neutral Cities Alliance and Urban Climate Action

The Carbon Neutral Cities Alliance is a collaboration of leading global cities working to cut greenhouse gas emissions by 80-100% by 2050 or sooner. With over 170 members across the U.S. and internationally, cities are developing comprehensive climate action plans to accelerate decarbonisation.

Cities are emerging as centres of climate innovation by:

Transitioning to renewable energy sources for electricity, heating, and transport
Retrofitting existing buildings for energy efficiency
Incentivising green construction of net zero energy buildings
Investing in bicycle and electric vehicle infrastructure
Increasing green spaces and tree canopy for natural carbon sequestration

Cities also play a crucial role in educating and engaging citizens on sustainability issues to build public support for ambitious climate policies and carbon neutrality goals.

The Role of Nature-Based Solutions in Achieving Carbon Neutrality

Nature-based solutions like reforestation, afforestation, and sustainable forestry practices play a key role in removing carbon dioxide from the atmosphere and achieving carbon neutrality.

Forestry for Carbon Sequestration: REDD and REDD+

Reducing Emissions from Deforestation and Forest Degradation (REDD) and REDD+ projects aim to create financial incentives to reduce deforestation rates and promote sustainable management and conservation of forests. By preventing deforestation and promoting new forest growth, these projects sequester significant amounts of carbon, generating carbon credits that can be sold on carbon markets. Key points:

REDD+ expands REDD to include conservation, sustainable management of forests, and enhancement of forest carbon stocks.
REDD+ projects follow strict guidelines and must demonstrate real, measurable, and verified emission reductions.
Over 300 REDD+ projects have been initiated globally since 2005, with estimated potential to mitigate 1-3 billion tons of CO2 per year when fully implemented.
Challenges exist in monitoring and verifying forest carbon and demonstrating additionality, but standards are improving.

Overall, REDD and REDD+ create clear incentives to maintain forests as carbon sinks and are an integral component of nature-based carbon offsetting.

Blue Carbon: The Importance of Coastal and Marine Carbon Sinks

Coastal wetlands like mangroves, tidal marshes, and seagrass meadows are incredibly effective at sequestering and storing carbon long-term, capturing it in their soils and sediments. Protecting and restoring these “blue carbon” ecosystems is crucial for climate change mitigation. Key aspects:

Though they occupy only 0.5% of the ocean surface, these ecosystems store over 50% of oceanic carbon – up to 1,000 tons per hectare.
Destruction of mangroves alone releases up to 10% of carbon emissions from deforestation globally each year.
Improved mapping and accounting for blue carbon is still needed in climate policy and carbon markets.
Projects that prevent coastal wetland loss and restore degraded areas offer significant, cost-effective carbon sequestration potential.

Safeguarding blue carbon ecosystems complements terrestrial efforts like REDD+ in working towards carbon neutrality through nature-based solutions.

Land Use, Land-Use Change, and Forestry (LULUCF) in Climate Change Mitigation

The Land Use, Land-Use Change, and Forestry (LULUCF) sector is critical for tracking carbon fluxes between the land and atmosphere. This includes emissions and removals of CO2 from changes in forest land, cropland, grassland, wetlands, and human settlements. Key aspects:

LULUCF actions like reforestation, sustainable agriculture, and bioenergy production with carbon capture can provide over 30% of needed emission reductions to reach Paris Agreement goals.
However, the land sector also accounted for around 13% of total anthropogenic GHG emissions during 2007-2016, demonstrating the impact land use changes can have.
Improved LULUCF accounting and policies that incentivize sustainable land management are vital to maximize mitigation potential.

Overall, the LULUCF sector plays a major role in the carbon cycle and can significantly contribute to achieving carbon neutrality through nature-based solutions.

Technological Innovations in Carbon Dioxide Removal and Carbon Capture

Carbon dioxide removal (CDR) and carbon capture technologies offer critical solutions for achieving carbon neutrality. By extracting CO2 from the atmosphere or capturing emissions before they are released, these innovations aim to balance out residual emissions that are difficult to eliminate.

As countries and companies pledge carbon neutrality commitments, scalable negative emissions technologies like direct air capture and carbon sequestration will play a pivotal role.

Direct Air Capture and Its Role in Carbon Neutral Strategies

Direct air capture (DAC) refers to technological processes that remove CO2 directly from ambient air. DAC facilities essentially act as "artificial trees" that can suck up carbon dioxide.

The captured CO2 can then be securely stored or utilized. For example, some direct air capture plants inject the carbon underground in a process called carbon sequestration. The CO2 can also potentially be recycled and converted into fuels, chemicals or building materials.

Because direct air capture removes emissions already accumulated in the atmosphere, it is considered a carbon dioxide removal or "negative emissions" solution. The appeal is that DAC technology can offset hard-to-abate carbon emissions from aviation, shipping, manufacturing or agriculture.

Experts argue that combining deep decarbonization efforts with negative emissions strategies can put us on track for carbon neutrality goals. In most climate change models that limit global warming within 1.5-2°C, scale-up of DAC capacity plays a major role.

However, costs and energy requirements remain barriers to widespread adoption. Further innovation around efficiency, modular design and integration with renewable energy can improve feasibility.

Carbon Sequestration and Storage: Pioneering Carbon Neutral Technologies

Carbon sequestration refers to the capture and secure storage of CO2 emissions before they enter the atmosphere. This can occur at the source of emission or via direct air capture.

Typically, the captured CO2 is injected and stored underground in depleted oil reservoirs or saline aquifers. This is known as carbon capture and storage (CCS). The aim is to permanently store the carbon dioxide where it cannot contribute further to climate change.

Enhanced oil recovery techniques also utilize carbon sequestration by injecting CO2 into partially depleted oil fields. This helps extract residual crude oil while storing the carbon underground.

In addition, carbon mineralisation research is looking into ways to convert CO2 into solid carbonate minerals. This provides secure and indefinite storage while creating useful products.

However, carbon storage capacity remains a concern and the permanence of reservoirs is still debated. Monitoring for leakage risks is therefore critical.

Overall, pioneers in carbon sequestration are paving the way for carbon neutrality across energy-intensive sectors. But work remains to scale solutions while addressing storage capacity constraints.

Carbon Farming: Agricultural Practices for Carbon Sequestration

The agricultural sector has substantial potential for carbon dioxide removal through nature-based solutions like carbon farming.

Carbon farming refers to land management practices that increase carbon storage in soil and vegetation. Strategies like cover cropping, compost amendments and conservation tillage can drastically improve soil organic carbon.

Agroforestry focused on planting trees alongside crops also sequesters carbon both above and below ground. Similarly, silvopasture integrates trees into grazing lands to enhance carbon storage.

It is estimated that global adoption of carbon farming practices could offset up to 10% of annual emissions. The co-benefits also include enhanced biodiversity, erosion control, flood regulation and increased yields.

Payments for measurable carbon sequestration may incentivize adoption on farms. Various certification standards help quantify and verify soil carbon credits which can then be sold on carbon markets.

Overall, carbon farming promises a natural climate solution that farmers can implement at scale to progress the world toward carbon neutrality.

Conclusion: Embracing a Carbon Neutral Future

As the impacts of climate change intensify globally, achieving carbon neutrality has become an urgent priority. Both companies and countries are recognizing the need to transition towards sustainable business models and energy systems that dramatically reduce greenhouse gas emissions.

Here are the key steps that organizations can take to reduce their carbon footprints and progress towards carbon neutrality:

Measure Carbon Footprint

Calculate scope 1, 2 and 3 emissions across operations and supply chain
Identify the largest sources of emissions to prioritise reduction efforts

Set Ambitious Emissions Reduction Targets

Commit to science-based targets aligned with 1.5°C climate scenarios
Aim for at least 50% reduction in emissions by 2030

Invest in Renewable Energy

Switch to 100% renewable electricity through PPAs and on-site solar/wind
Electrify vehicle fleets and heating systems

Improve Energy Efficiency

Upgrade equipment, processes and buildings to be more energy-efficient
Adopt IoT sensors and analytics to optimise real-time energy use

Offset Remaining Emissions

Finance certified carbon offset projects to counterbalance unavoidable emissions
Support projects with additional environmental and social benefits

Innovative technologies and nature-based solutions will play a key role in cost-effectively decarbonizing hard-to-abate sectors. Governments also need to introduce supporting policies - from carbon pricing to clean energy investments - that accelerate the transition to carbon neutrality. With ambitious climate action across the private and public sectors, net zero emissions can be achieved globally by 2050.