means reducing emissions as close to zero as possible, then balancing any remaining emissions with an equivalent amount of permanent CO₂ removals.
It is not the same as carbon neutral. requires deep reduction first; offsets are only for the small residual that reduction cannot yet eliminate.
The precise definition
The IPCC defines as a state where anthropogenic emissions are balanced by anthropogenic GHG removals over a specified period.
For corporates, 's Corporate Net-Zero Standard requires at least 90-95% absolute emissions reduction across Scopes 1, 2, and 3 by 2050, with the remaining 5-10% neutralised via permanent removals.
Net zero vs carbon neutral
Carbon neutral means offsets have been bought to match current emissions - the emissions themselves may not have fallen.
requires the reduction first. A company can be 'carbon neutral' today without being on a net-zero pathway. Regulators and serious buyers know the difference.
What a credible net-zero commitment looks like
A near-term target (2030) aligned with 1.5°C, a long-term target (2050) covering 90%+ of emissions, a public transition plan, and annual progress reporting.
Removals for the residual should be permanent (100+ years) - not short-cycle forestry or unverified projects.
FAQ
Frequently asked questions
Is net zero the same as carbon neutral?
No. Carbon neutral means offsets match current emissions; net zero requires the emissions to be nearly eliminated first.
Can offsets get me to net zero?
Only for the small residual after 90-95% reduction. Offsetting a full footprint is carbon neutral, not net zero.
Do SMEs need a net-zero target?
Not legally, but major customers, banks, and public tenders increasingly require one. SBTi's SME route validates targets for under $1,000.
Set a credible net-zero target
Vuneli walks Cyprus SMEs from baseline to SBTi-validated commitment with pre-built templates and annual tracking.
