Finance Glossary

Net Zero / carbon neutrality

What does Net Zero mean?

Carbon neutrality or Net Zero is a state of balance between anthropogenic CO2 emissions – that is, those caused by human activities – and anthropogenic CO2 absorptions. Removing as much CO2 each year as is emitted is the only way to stop the accumulation of CO2 in the atmosphere, and thus to subsequently stabilize temperatures.

To meet the goals of the Paris Agreement, achieving this carbon neutrality on a global scale must necessarily occur before 2050. To reach this global carbon neutrality, human societies must act on two main levers: reducing CO2 emissions and increasing sinks – afforestation/reforestation, agricultural techniques, technological solutions.