Understand the difference between net-zero, carbon neutral, and science-based targets and how these concepts are applied in companies.
By Fabio Frasson
Apr 27, 2026

Energy Transition
Sustainability
Terms like “net-zero”, “carbon neutral”, and “science-based targets” have become part of the corporate vocabulary when it comes to sustainability.
Although frequently used as synonyms, these concepts have important differences, both from a technical standpoint and in how they are applied in practice.
The concept of carbon neutral is related to the balance between greenhouse gas emissions and their compensation.
In practice, this means that an organization can reduce part of its emissions and offset the rest through carbon credits.
This model has been widely used, although it has limitations when direct emission reduction is not prioritized.
The concept of net-zero involves deep emission reductions over time, combined with the neutralization of residual emissions.
Unlike carbon neutral, the focus is on significant emission reduction, prioritizing decarbonization, and neutralizing only what cannot be eliminated.
Initiatives such as the Science Based Targets initiative establish specific criteria for defining net-zero targets.
Science-based targets are those structured based on technical criteria aligned with global climate scenarios.
They define how much to reduce, in what timeframe, and with what level of ambition.
These targets are validated by initiatives like the Science Based Targets initiative, ensuring consistency with climate science.
Simplified:
✓ Carbon neutral: focus on compensation (offsetting);
✓ Net-zero: focus on deep reduction + residual neutralization;
✓ Science-based targets: technical definition of how to reduce.
Correct understanding of these concepts is fundamental to avoid misinterpretations, structure more consistent strategies, and communicate clearly and precisely.
Furthermore, it contributes to greater transparency and alignment with market expectations.
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Although related, the concepts of carbon neutral, net-zero, and science-based targets have relevant differences. Understanding them is essential for building more robust decarbonization strategies aligned with science.
This content was developed by the Mitsidi content team based on the company’s experience in sustainability, energy efficiency, and decarbonization projects.
The materials published in this section are prepared by the editorial team and reviewed by Mitsidi’s technical specialists.
Mitsidi is a specialist in sustainability, energy efficiency, and decarbonization, providing consultancy, research, training, and solution development for companies, buildings, and industries.
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