Net Zero: What Is Climate Neutrality and How to Achieve It?

Table of Contents

Why is climate neutrality important?

Climate change is one of the most serious challenges of the 21st century. Rising temperatures, melting glaciers, rising sea levels, and extreme weather events are just some of its consequences. To limit global warming to below 1.5°C above pre-industrial levels, which is the goal of the Paris Agreement, we must significantly reduce GHG emissions.

What does achieving “Net Zero” mean?

Achieving climate neutrality requires a drastic reduction in greenhouse gas emissions across almost all sectors of the economy, such as energy, transport, agriculture, and industry. For the remaining emissions that cannot be eliminated, it is necessary to use compensatory mechanisms such as:

• Carbon absorption — for example, through afforestation or forest protection, which act as natural “sinks” for CO2.
• Carbon capture and storage (CCS) technologies — technological processes that capture CO2 from the atmosphere and store it underground.
• Emission offsetting — investing in projects that reduce emissions elsewhere in the world, e.g., by supporting renewable energy.

Key aspects of organizations striving for climate neutrality

Analysis and reduction of own emissions

Companies must first audit their own emissions, which includes:

• Direct emissions (e.g., fuel combustion in company vehicles or production processes),
• Indirect emissions (electricity, heat),
• Emissions related to the supply chain (transport, raw materials, products).

An important step is to reduce these emissions, for example by:

• Energy efficiency,
• Switching to renewable energy sources,
• Using low-emission technologies.

Investments in sustainable technologies

Striving for net-zero involves investing in technologies that help the company reduce emissions, such as:

• Photovoltaics, wind energy, biomass,
• Carbon capture and storage (CCS) technologies,
• Hydrogen as an alternative fuel.

Carbon Offsets

Some emissions are unavoidable, which is why companies use compensatory mechanisms (offsets), for example by financing carbon sequestration projects:

• Afforestation and forest protection,
• Projects related to renewable energy sources,
• Initiatives in the field of energy efficiency in developing countries.

Supply Chain Management

An important step is cooperation with suppliers and partners to also reduce emissions in their operations. This may include:

• Changes in logistics,
• Selection of more sustainable raw materials,
• Cooperation in innovations in low-emission technologies.

Business Model Change

Striving for net-zero often requires changes in business models, such as:

• Developing more sustainable products,
• Reducing waste,
• Transitioning to a circular economy.

Striving for net-zero is becoming an increasingly important element of corporate strategies, especially as consumers, investors, and regulatory bodies are putting more and more pressure on companies to be more sustainable and responsible for their emissions.

What is the “Fit for 55” initiative and what are its main objectives?

“Fit for 55” is a European Union initiative aimed at reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. It is a key element of the European Green Deal, which aims to achieve climate neutrality by 2050.

Main objectives of “Fit for 55”:

1. Strengthening the European Emissions Trading System (EU ETS):
   • The EU ETS, which covers emissions from industry, energy, and aviation within the EU, will be reformed to reduce the number of available emission allowances more quickly.
2. Expansion of the ETS system:
   • A new ETS system will be introduced for the construction and road transport sectors to reduce emissions in these areas.
3. Carbon Border Adjustment Mechanism (CBAM):
   • CBAM will impose emission charges on imported goods from outside the EU to prevent “carbon leakage,” where production moves to countries with less stringent climate regulations.
4. Renewable energy and energy efficiency:
   • Increasing targets for the share of renewable energy sources and improving energy efficiency.
5. Transport:
   • Introducing stricter emission standards for cars to accelerate the transition to electric vehicles.

“Fit for 55” is part of a broad plan to transform the EU economy towards a more sustainable and low-emission model, which aims not only to limit climate change but also to create new economic opportunities and improve the quality of life in Europe.

Summary

Climate neutrality is becoming a key global goal in the fight against climate change, requiring both radical emission reductions and investments in compensatory mechanisms. Achieving this goal involves transforming economic sectors, including energy, transport, agriculture, and industry. Organizations must take strategic actions such as optimizing production processes, investing in low-emission technologies, and managing supply chains in a more sustainable way. Striving for net-zero is not only a response to climate challenges but also a driver for building a more sustainable and resilient future economy.