Jargon Busting

Understanding Carbon Terminology

There are a few different terms in the carbon accounting field that are important to distinguish.

Carbon neutrality

A state of net zero C02 emissions, where the quantity of C02 emissions released into the atmosphere from an organisations activity's is balanced by an equivalent amount being removed. This can be achieved through carbon offsetting.

Net zero

A step further than carbon neutrality, where emissions have been reduced as far as possible, in line with the climate science to limit the global temperature increase to 1.5°C. Any credits purchased to offset are for residual emissions that cannot be reduced. Sometimes 'net zero' is used interchangeably with 'carbon neutral' – but it's important to understand the difference here.

Zero Carbon

When the organisation produces no emissions in the first place. As far as we're aware, there are no organisations that have achieved this status. In the longer term, when organisations up and down the value chain have eliminated all their emissions, we could see organisations declaring themselves zero carbon.

Carbon negative

Refers to an organisation going beyond achieving net zero emissions, to create an environmental benefit by removing more C02 from the atmosphere than the organisation produced. This is also known as 'Climate Positive'.

Carbon Offsetting

Involves investing in projects that remove carbon from the atmosphere or prevent emissions from being produced. At present, there are no artificial ways of removing carbon from the atmosphere at the scale required to tackle climate change, so carbon must be removed through natural means. Carbon can be sequestered through tree planting and forestry protection – these projects also enhance biodiversity. Alternatively, offsetting can involve investing in renewable energy projects.

Carbon offsetting can be achieved by purchasing credits, these are priced per tonne of C02e (£/tC02e).

There are a few internationally recognised offset schemes, such as the Gold Standard and Verified Carbon Standard. These schemes are supported by the UN and certify that genuine emission reductions have been achieved and accounted. The projects involved are aligned with the UN's Sustainable Development Goals, to act on climate change, enhance biodiversity and provide clean energy.

It's also important to understand the different scopes of a carbon footprint:

Scope 1 is emissions directly from assets owned and controlled by the organisation. This can include natural gas emissions in buildings and fuel use in vehicles.
Scope 2 is the emissions associated with purchased energy, where the emissions occur in assets not owned by the company. This scope includes your electricity consumption.
Scope 3 is your indirect emissions. These are indirect emissions that occur in assets not owned or controlled by the company. This can include emissions produced in the supply chain, the emissions associated with waste disposal and transportation using 3rd party assets. For bodyshops we're including the supply chain emissions associated with paint and parts supply amongst others.

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Green Earth Initiative Partner