Table 3.

Examples of definitions of net‐zero and carbon neutrality claims

Framing of claim	Example of definition	Implications for the use of carbon credits
Net zero	Setting corporate net‐zero targets aligned with meeting societal climate goals means 1) achieving a scale of value chain emissions reductions consistent with the depth of abatement at the point of reaching global net‐zero in 1.5 °C pathways and 2) neutralizing the impact of any residual emissions by permanently removing an equivalent volume of carbon dioxide. ‐SBTI, The Path to Net Zero (2021)	The use of carbon credits is generally aimed at ensuring no “net” emissions occur at a global level, keeping global temperatures stable at a specific level (e.g., 1.5 or 2 C above pre‐industrial levels). The use of carbon credits is limited to neutralizing emission sources that remain unabated in a specific year of a mitigation scenario that is consistent with global efforts to reach net zero. Credits must represent emission removals; emission reductions are not eligible. Carbon credits are also endorsed for interim use to achieve BVCM as part of net zero‐aligned climate action.
Carbon neutral	Companies, processes, and products become carbon neutral when they calculate their carbon emissions and compensate for what they have produced via carbon offsetting projects. Offsetting carbon emissions, in addition to avoidance and reduction, is an important step in holistic climate action. ‐Climate Partner, Carbon Neutral, what does it actually mean? (2022)	The use of carbon credits is aimed at ensuring no “net” increase in emissions occurs per transaction, which keeps global annual emissions stable while global temperatures increase. There are no constraints on the use of carbon credits beyond the general quality criteria.