What is net-zero emissions, and what will it take to get there?
Explore the definition of net zero and what companies in the private sector can do to help stop climate change. Learn how to create a carbon reduction strategy that aligns with internationally recognized scientific goals.
In the fight against climate change, what does “net-zero” mean?
Scientists agree that by producing excess greenhouse gases, humans have upset the delicate atmospheric balance that makes the planet habitable. Burning fossil fuels, deforesting the landscape, and other activities have set Earth on a path toward climate change—with potentially catastrophic consequences.
The urgent need to halt global warming by changing how energy, land, and chemicals are used is driving a cooperative international effort to “go net zero.” Unless individuals and businesses make a rapid shift toward net-zero emissions on a planet-wide scale, irreversible climate change is inevitable. So, what is net-zero emissions, exactly, and what will it take to achieve it?
Net-zero emissions describes a state where the quantity of greenhouse gas released into the atmosphere is equal to the quantity removed from it. To get to that state, people can make changes to their current way of life to reduce greenhouse gas emissions. They can also balance out the effects of excess emissions the ecosystem can’t naturally absorb through initiatives such as reforestation, land use changes, and carbon dioxide removal.
Carbon dioxide (CO2) accounts for almost 75% of greenhouse gases, with the vast majority coming from fossil fuel use in transportation and industry. Methane, nitrous oxide, and synthetic fluorocarbons make up the rest of greenhouse gases that need to be brought into balance.
Talking about emissions: Some definitions of net-zero-related terms
It’s easy to get confused by the terminology that comes up in conversations about climate change. Here are a few definitions of popular phrases close in meaning to net zero.
Carbon neutral. Carbon neutral means the CO2 emitted through human activities is fully balanced by CO2 reductions or carbon removals put in place, whether through reforestation or carbon removal technology. Being carbon neutral doesn’t necessarily mean those activities are in a net-zero state with respect to all greenhouse gases, however—just CO2. That is where the difference between carbon neutral versus net zero lies.
Net-zero carbon emissions. Net-zero carbon emissions is synonymous with carbon neutral for the same reason. When an organization achieves net-zero carbon emissions, it has tackled the biggest offender among the greenhouse gases, CO2.
Carbon offsetting. Companies can offset the CO2 they release into the atmosphere by supporting initiatives that remove it, such as planting trees, funding research on clean energy use, or paying for physical removal of CO2 from the air.
Carbon negative. Being carbon negative is a considerable achievement. It means an organization’s activities are removing more CO2 from the atmosphere than go into it.
Climate positive. Climate positive is the best possible state to be in. It means removing more greenhouse gases from the atmosphere than are released into it.
Why join the race to net zero?
Clean energy has become more widespread in recent years, and many world governments are enacting climate legislation. And yet, change isn’t happening fast enough, and carbon emissions are increasing. Earth is in a situation that the United Nations’ Intergovernmental Panel on Climate Change (IPCC) has called a “code red for humanity.”
Since climate change is an urgent global problem, an aggressive solution must be adopted by citizens, governments, and industries everywhere. Some governments and companies have already made climate change commitments, but these changes are insufficient to keep the planet at a temperature that will support life as we know it today.
Scientists and intergovernmental bodies agree that halting global warming at 1.5 degrees Celsius above pre-industrial times is crucial. Drastic cuts in emissions by the end of this decade will be necessary to achieve it. That is a short timescale, which is why the United Nations’ rallying cry for the effort is called Race to Zero.
For Race to Zero to be successful in halting climate change, global carbon emissions must be halved by 2030 and reach net zero by 2050. It will be no small feat, but it will also be a rewarding journey.
The private sector’s role in reaching net-zero emissions
Human innovation got the planet to this tipping point, and innovation can get us out of it. Before the Industrial Revolution in the late eighteenth century, CO2 and other greenhouse gases in the atmosphere were reabsorbed by the ocean’s surface, forests and other plant life, and soil. Humanity’s passion for new ways of doing things led to landscape change and the burning of more fossil fuels.
We can make another shift in the way we do things. And while individual cooperation is necessary to fight climate change, private sector companies have the resources to have a much greater and more rapid impact.
Private sector companies must band together and move quickly. They must not only reduce their own carbon emissions but also develop new sustainable technologies and net-zero-aligned products that consumers can use to do their part.
Since a huge proportion of the world’s carbon emissions come from transportation and industry, it’s safe to say that none of it can be reduced without widespread change throughout the private sector. Together, the world’s companies can help create a global net-zero economy.
Who’s already having an impact?
Every step toward net zero counts, especially when it comes to tackling the most prevalent of greenhouse gases, CO2. Thousands of companies have begun carbon-reduction journeys and are joining the conversation about how they can do more. Depending on an organization’s stage of that journey, the meaning of a net-zero initiative can be different. It might be installing energy-efficient light bulbs, taking advantage of government programs that support clean energy options, or shifting to electric vehicles for your transportation needs.
Those who can move faster and go further, however, need to do so.
Several of the world’s largest companies have embraced more aggressive net-zero emissions targets aligned with the Paris Agreement and the Science-Based Targets initiative (SBTi). These companies, representing $38 trillion of the global economy, are committed to making net zero the norm of the business world.
About a fifth of the world’s large public companies, including Microsoft, Apple, Ford, Amazon, CVS Health, AT&T, and Sony, have committed to emission reduction targets that adhere to SBTi’s strict definition of net-zero aligned targets. Each of these companies has set the ambitious goal of getting to net zero by 2050 or before and more are joining them every day.
There are also companies that are bringing carbon offsets within others’ reach by supporting the nascent carbon removals marketplace. Microsoft, Google, Apple, Delta, Meta, Shopify, and Stripe are all making carbon offsets a core focus of their net-zero strategies.
Chart your unique path to net-zero carbon emissions
The scale of the climate change problem can make going net zero seem daunting. Whether you’ve only just learned the meaning of net zero or you’ve already begun making bold changes to neutralize your carbon footprint, use these three principles to take your next step in the fight to stop climate change.
Make reaching net zero a critical objective.
For the world to reach net zero, businesses in every sector, in every industry, in every country need to make reducing emissions a priority and be accountable for keeping their commitments. No matter the size of your business, give sustainability initiatives high priority in your iterative planning cycle.
What is a net-zero emissions strategy that works? One that is transparent, detailed, and innovative. Check out the ways that Microsoft is approaching sustainability to get ideas about how you can make a difference.
Measure and track your carbon emissions.
You can’t change what you don’t measure. When you collect and analyze data about your energy use across your operations, you’ll begin to see opportunities to change things for the better. It will also help you to remain accountable to your net-zero emissions targets.
To calculate your carbon footprint and estimate how cloud-based technologies can help reduce your energy demand, try the Emissions Dashboard for Microsoft 365. You can use it to track direct and indirect emissions related to your cloud use and across your value chain.
Engage others in your climate change commitments.
Everyone will have to change the way they do things in order to get to net zero. Start conversations with your partners upstream and downstream of your operations to build a sustainable value chain and encourage climate impact transparency within it.
You should also consider becoming part of society’s broader discourse on science-based paths that accelerate our collective impact on the health of the 1827environment.
Explore sustainability solutions
One platform that is empowering businesses in every sector to make a positive impact on the environment is Microsoft Cloud for Sustainability. Its solutions allow organizations to accelerate their progress by recording, reporting, and reducing their emissions along their journey to net zero.
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