Carbon neutral vs net zero: what the claims mean and how to spot greenwashing
A neutral guide to carbon neutral, net zero and climate positive claims, the standards behind them (ISO 14068, SBTi, UN HLEG) and India's 2024 greenwashing guidelines.
Frequently asked questions
What is the difference between carbon neutral and net zero?
Carbon neutral usually means emissions for a set period are measured and balanced, often with carbon credits, while net zero means cutting emissions by about 90% or more and balancing only the small remainder with permanent removals. Carbon neutral claims are covered by ISO 14068:2026 (formerly ISO 14068-1:2023); corporate net zero targets are commonly checked against the SBTi Corporate Net-Zero Standard.
Is carbon neutral the same as net zero?
For a company or product, no: carbon neutral can be claimed for one year mainly through credits, while net zero requires deep emission cuts over time. At the scale of the whole planet, the IPCC treats carbon neutrality and net zero CO2 emissions as the same idea.
What is greenwashing in simple words (greenwashing meaning in Hindi)?
Greenwashing means making a product or company look more environment friendly than it really is, through false, vague, exaggerated or incomplete green claims. In Hindi it can be explained as "jhootha hara dikhava", a false green show.
Is greenwashing illegal in India?
Misleading environmental claims are prohibited under the CCPA Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024, issued on 15 October 2024 under the Consumer Protection Act, 2019. The guidelines require green claims to be specific and backed by credible certification or reliable scientific evidence.
Can a company become net zero by buying carbon credits?
Not under the main standards: the SBTi Corporate Net-Zero Standard requires cutting emissions by 90% to 95% before 2050 and allows removals only for the small residual. The UN expert group report "Integrity Matters" (2022) also says carbon credits should not count toward interim emission reductions.
What is ISO 14068?
ISO 14068:2026 is the international standard for achieving and demonstrating carbon neutrality, published by ISO in September 2026; it replaced ISO 14068-1:2023 (November 2023) with the same content. It asks organisations and product makers to measure their footprint, reduce it, and only then offset what remains, following a management plan and communicating claims transparently.
What is India's net zero target year?
India's net zero target year is 2070, as stated in its reports to the UNFCCC, including the First Biennial Transparency Report (BTR-1). Our article on India's climate targets explains the 2030 and 2035 goals that lead toward it.
How can I check if a company's green claim is genuine?
Check whether the claim says exactly what is covered, gives a number and a period, names an independent certification or verifier, and explains how much depends on carbon credits. For future targets, look for interim goals and yearly progress reports.
Sources: IPCC AR6 Working Group III, Annex I: Glossary (2022); IPCC AR6 Working Group III, Summary for Policymakers (2022); UNFCCC, Paris Agreement (2015); ISO 14068-1:2023 Climate change management: Transition to net zero, Part 1: Carbon neutrality (catalogue page); BSI, PAS 2060 and ISO 14068-1 carbon neutrality; SBTi, The Corporate Net-Zero Standard (web page); SBTi, SBTi launches world-first net-zero corporate standard (28 October 2021); United Nations, High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities, Integrity Matters (2022); Press Information Bureau, CCPA issues Guidelines for Prevention and Regulation of Greenwashing and Misleading Environmental Claims (15 October 2024, Release ID 2064963); Department of Consumer Affairs, Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 (PDF); ASCI, Draft Guidelines: Environmental/Green Claims (16 November 2023); European Commission, Directive (EU) 2024/825 on empowering consumers for the green transition (Transition Pathways page); Directive (EU) 2024/825, Official Journal of the European Union; MoEFCC, India First Biennial Transparency Report (BTR-1) to the UNFCCC; ISO 14068:2026 Climate change management: Carbon neutrality (ISO committee page; replaces ISO 14068-1:2023); SBTi blog: Countdown to validation: new resources to prepare for the Corporate Net-Zero Standard V2.0 (2026)
This article was prepared with AI assistance and checked by the GreenEye team against the sources shown in each section.
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