The complexity of Climate Neutrality: Definition, Regulation, and Effectiveness
In recent years, the term “climate neutral” has become a buzzword in the business world, with an increasing number of companies and even countries claiming to be working towards this goal. However, the meaning of “climate neutral” is not well-defined, and there is no regulatory framework in place to oversee its use. This raises important questions about the validity of these claims and their impact on the environment.
The European Parliament provides a rough definition of climate neutral as a manufacturing process or service that does not emit more greenhouse gases than can be offset elsewhere. However, this definition has been criticized for its reliance on offsets, which do not necessarily reduce emissions but instead allow companies to compensate for their emissions at a later time. For example, an individual who offsets their carbon footprint when buying a flight ticket is contributing to the reduction of greenhouse gases, but the emissions from the flight itself are not reduced.
The use of offsets to achieve climate neutrality has been the subject of much debate in recent years. Some argue that relying solely on offsets is not enough to tackle the issue of climate change and that real emissions reductions are necessary (Granberg, 2020). A report by the Intergovernmental Panel on Climate Change (IPCC) found that emissions need to be reduced by 45% by 2030 and reach net zero by 2050 in order to limit global warming to 1.5°C (IPCC, 2018).
Despite the ongoing debate, more and more companies are making climate neutrality claims. A study by the Carbon Trust found that 87% of companies surveyed had set targets to reduce their greenhouse gas emissions, with 44% of those targets being “ambitious” (Carbon Trust, 2020). However, without a universally agreed-upon definition of climate neutral and a regulatory framework to oversee its use, it is difficult for consumers to assess the validity of these claims.
References:
Carbon Trust (2020). The State of Sustainable Business Report 2020. Available at: https://www.carbontrust.com/resources/reports/the-state-of-sustainable-business-report-2020/
Granberg, A. (2020). Climate neutrality: Is offsetting a solution or a problem? Available at: https://www.euractiv.com/section/climate-environment/opinion/climate-neutrality-is-offsetting-a-solution-or-a-problem/
Intergovernmental Panel on Climate Change (2018). Global Warming of 1.5°C. Available at: https://www.ipcc.ch/sr15/
