---
description: "What is Carbon Neutral: It is achieved when the world balances out greenhouse gases we produce with the gases we remove from the atmosphere."
title: What is Carbon Neutral? - Energy Theory
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# What is Carbon Neutral?

By [Elliot Clark](https://energytheory.com/author/elliot_clark/)November 17, 20233 Mins Read

![JAN23 What is Carbon Neutral](https://energytheory.com/wp-content/uploads/2023/09/JAN23-What-is-Carbon-Neutral-1024x683.jpg "What is Carbon Neutral?")

The term carbon neutral has been around for a while, but what does it really mean? In simple terms, true carbon neutrality is achieved **when the world balances out the greenhouse gases we produce with the gases we remove** from the atmosphere. This removal mainly happens through things like forests, oceans, and special technologies like capturing carbon from the air.

Here’s the problem: we’ve been releasing way more carbon dioxide and other [greenhouse gases](https://energytheory.com/what-are-greenhouse-gases/) than nature or technology can handle. This is causing our planet to heat up significantly, far from any balance.

Now, carbon neutrality isn’t just about the whole planet; **it’s used for countries, companies, and even products or events**. The idea is that when these entities claim to be carbon neutral, they’re essentially saying they’ve offset their emissions. It’s like a trade-off – they emit carbon in one place and invest in ways to remove it somewhere else. Sounds simple, but there are issues.

- First, offsets aren’t always based on solid science.
- Second, the offset industry isn’t well-regulated, which lets companies continue polluting without making real efforts to cut emissions.

### **How to Achieve Carbon Neutrality**

To be carbon neutral, a company should consider emissions from its supply chain, like when a plane maker has to account for the fuel burned by the planes they produce. Until all these emissions are offset or removed, it’s more like an accounting trick than a real solution.

According to the [Intergovernmental Panel on Climate Change (IPCC)](https://www.ipcc.ch/2022/04/04/ipcc-ar6-wgiii-pressrelease/#:~:text=%E2%80%9CHaving%20the%20right%20policies%2C%20infrastructure,III%20Co%2DChair%20Priyadarshi%20Shukla.) experts, attaining carbon neutrality by 2050 and limiting global warming to 1.5°C is possible. However, they emphasize that achieving this goal **demands unprecedented social and political changes.** In a recent communication, the UN outlined key steps for the short term:

- Establish a carbon pricing mechanism that encourages investment in carbon removal and low-emission alternatives, such as renewable energy.
- Halt the construction of new coal-fired power plants, a significant source of emissions.
- Shift the burden of carbon taxation from taxpayers to the polluting entities.
- Require the disclosure of economic risks linked to climate change.
- Integrate carbon neutrality objectives into countries’ financial and fiscal decision-making.

At a personal level, individuals can also play a crucial role in [reducing their carbon footprint](https://energytheory.com/how-to-reduce-carbon-footprint-as-a-student/).

### **What are the Advantages of Achieving Carbon Neutrality?**

Reaching carbon neutrality isn’t just about averting the worst effects of climate change; it also yields numerous advantages for communities and society at large:

- **Reduced Environmental Pollution and Better Health:** Carbon neutrality leads to decreased pollution, resulting in improved public health.
- **Stimulated Sustainable Economic Growth and Green Jobs:** It fosters sustainable economic expansion and the creation of environmentally friendly employment opportunities.
- **Enhanced Food Security:** Carbon neutrality mitigates the adverse effects of [climate change](https://energytheory.com/what-is-climate-change/), contributing to greater food security.
- **Preservation of Biodiversity and Ocean Health:** Carbon neutrality efforts help curtail [biodiversity loss](https://www.lse.ac.uk/granthaminstitute/explainers/what-are-the-extent-and-causes-of-biodiversity-loss/) and enhance the health of our oceans.

Moreover, organizations can also directly benefit from pursuing carbon neutrality in the following ways:

- **Demonstrates Commitment to Decarbonization:** It showcases a company’s dedication to reducing its carbon footprint and compensating for residual impacts.
- **Improves Environmental Credentials:** Companies gain recognition as environmentally responsible brands, setting them apart from others.
- **Alignment with UN Sustainable Development Goals (SDGs):** By supporting carbon neutrality, businesses align with SDGs, reducing both general and private risks associated with climate change.

In essence, the journey toward carbon neutrality offers a wide array of societal, environmental, and corporate benefits.

**Recommended:** [What is Carbon Offsetting?](https://energytheory.com/what-is-carbon-offsetting/)

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[Elliot Clark](https://energytheory.com/author/elliot_clark/)

Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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