The difference between Carbon Neutral vs Net Zero

You’ve likely heard of the main climate phrases: Carbon neutral. Net zero. Carbon positive. Climate positive. They’re often used interchangeably, but they actually don’t mean the same thing. Understanding the difference matters, especially for businesses trying to make credible decisions rather than headline claims.

What is carbon neutral?

Carbon neutral means balancing emissions so that, on paper, a business or activity results in no net increase of carbon dioxide in the atmosphere.

In practice, this usually works like this: emissions are measured, then offset through carbon credits. These credits might fund tree planting, renewable energy projects, or conservation schemes elsewhere.

Carbon neutral does not require emissions to fall dramatically. A company can continue emitting at similar levels, as long as those emissions are matched by offsets. That makes carbon neutrality quick to achieve, and attractive for organisations early in their sustainability journey.

The challenge is that offsets vary widely in quality, permanence and impact. Carbon neutral status depends heavily on what sits behind the offsetting claim, which is why working with an experienced sustainability consultant (combined with the right technology platform) makes a real difference.

What is net zero?

Net zero goes further. It starts with the assumption that emissions must be reduced first, rather than simply balanced.

A net zero strategy requires organisations to measure emissions across their operations and supply chains, then take active steps to cut them. Only the emissions that cannot yet be eliminated are offset, and even then, expectations around offset quality are generally higher.

Essentially, Net zero is more about structural change. It touches energy use, procurement, travel, materials, and decision making at every level, making it more closely aligned with what climate science says is needed.

Carbon neutral balances emissions. Net zero prioritises reducing them.

What is carbon positive?

Carbon positive, sometimes called climate positive, means removing more carbon from the atmosphere than is emitted.

This can involve deep emissions reductions combined with activities that actively draw carbon down, such as nature restoration, soil regeneration, or long-term carbon removal technologies.

Carbon positive is not simply net zero with extra offsets added on. Credible carbon positive approaches usually require businesses to have already done significant work to reduce their own emissions first.

It represents a shift from doing less harm, to actively contributing to climate repair.

Why carbon neutrality is still important

Carbon neutrality is not meaningless (despite what click-bait news headlines tell you), and it’s not inherently greenwashing.

For many organisations, it can act as a starting point. Measuring emissions, understanding where they come from, and taking responsibility for them is progress, particularly for businesses that have never engaged with carbon accounting reporting before.

Carbon neutrality can also play a role while longer term carbon reduction plans are being developed. The key issue is intent and transparency. Carbon neutrality works best when it sits within a wider plan to reduce emissions over time, rather than as an endpoint.

Most organisations do not need perfect answers on day one. They need a clear picture of their emissions and a realistic plan for dealing with them. That’s where we tend to come in, working alongside teams to build credible foundations and avoid shortcuts that create problems later.