Fundamentals · Updated March 2026 · 5 min read

Carbon Neutral vs Net Zero — What's the Difference?

Quick answer: Carbon neutral and net zero are both terms for achieving zero carbon emissions, but net zero is more rigorous. Carbon neutral allows for unlimited use of carbon offsets to balance emissions, while net zero requires reducing emissions as much as possible first, and only using offsets for remaining emissions. Net zero also includes all greenhouse gases, not just carbon dioxide.

Definition of Terms

Carbon Neutral

Carbon neutral means achieving a balance between emitting carbon dioxide and absorbing it from the atmosphere. This can be done through:

Carbon neutral often focuses on carbon dioxide only, and there's no specific requirement for how much emissions must be reduced before using offsets.

Net Zero

Net zero is a more comprehensive and rigorous standard:

Key Differences

Aspect Carbon Neutral Net Zero
Emission reduction requirementNo minimumAt least 90% reduction
Greenhouse gases coveredUsually CO₂ onlyAll greenhouse gases
Offset qualityVariableHigh-quality, verified
RigorousnessLowerHigher
Long-term goalBalance emissionsPhase out emissions entirely

Examples of Implementation

Carbon Neutral

A business might claim to be carbon neutral by:

Net Zero

A company working towards net zero might:

Which is Better?

Net zero is a stronger commitment and more aligned with climate goals. While carbon neutral can be a starting point, net zero is necessary to limit global warming to 1.5°C. The difference is similar to dieting: carbon neutral is like balancing calories by eating more and then burning them off, while net zero is like eating less first and only burning off a small amount.

Frequently Asked Questions

Can individuals be net zero?

Yes. Individuals can work towards net zero by reducing their emissions as much as possible and offsetting remaining emissions. Our calculator can help you understand your current footprint and what you can reduce.

What are high-quality offsets?

High-quality offsets are verified to be additional (would not have happened without the offset), permanent, and not double-counted. Examples include direct air capture and regenerative agriculture.

Is net zero achievable?

Yes, but it will require a rapid transition to renewable energy, improved efficiency, and investment in carbon removal technologies. The IPCC states that we need to reach net zero by 2050 to stay below 1.5°C.

Data sources: IPCC AR6 WGIII (2022), Science Based Targets initiative (SBTi), UNFCCC, International Energy Agency (IEA).