Definition 1
Carbon Neutral means where the net Greenhouse Gases emitted by [the organisation OR activity OR product] are zero, as certified under [ISO 14068-1 OR British Standards Institution Carbon Neutral Kitemark scheme] by [an accredited certification body], as a result of maximum feasible emission reductions [and the offsetting of remaining emissions [by carbon credits purchased by [the entity])] [please refer to drafting notes] [in [define time period]].
[Drafting note: ISO14086-1 is for organisational carbon neutrality whereas the BSI Carbon Neutral Kitemark Scheme is for the carbon neutrality of products or services.]
Drafting notes and guidance
Net Zero vs Carbon Neutral
While the terms net zero and carbon neutral are often used interchangeably, the concept of net zero is distinct from carbon neutral. For an explanation of the difference between the two, please refer to the drafting notes for Net Zero.
ISO-14068-1
- ISO-14068-1 considers carbon neutrality as a pathway of continual improvement along which the carbon footprint of an organisation is reduced by implementing emissions-reduction and removal enhancement activities, and therefore the need for offsetting decreases over time.
- ISO-14068-1 defines carbon neutrality as the state where all greenhouse gas (GHG) emissions are balanced by GHG removals (this is equivalent to The Intergovernmental Panel on Climate Change (IPCC) definition of GHG neutrality). It therefore does not only focus on carbon dioxide but all greenhouse gases.
Relevant considerations
Carbon neutrality is achieved when the net GHG emissions associated with an organisation, product, or service are reduced to zero by:
- reducing emissions as much as possible; or
- possibly offsetting remaining emissions using credible GHG removal or compensation measures.
However, offsetting should only be used after GHG emission reductions and GHG removal enhancements have been made in line with any carbon neutrality management plan.
Depending on your organisation’s approach to carbon credits or offsetting, drafters may want to remove the definition’s reference to achieving carbon neutrality by offsetting via carbon credits. Carbon credits do not have to be used as offsets, and the terms ‘offsets’ and ‘credits’ are not synonymous.