Unified Metrics Library - Net-Zero target

Net-zero standards require companies to cut their GHG or greenhouse gas emissions to as close to zero as possible. The EU Green Deal, accompanied by European Climate Law, puts forward an ambitious goal of being the first climate-neutral continent by 2050 while slashing its emissions by 55 per cent by 2030 compared to 1990 levels.

Regulatory Definition

Net Zero refers to the amount of greenhouse gases (GHGs) – such as carbon dioxide (CO2), methane or sulphur dioxide – that are removed from the atmosphere being equal to those emitted by human activity. Emissions reductions would generally follow a certain trajectory, e.g. 1.5°C. Any residual emissions would generally focus on GHG sequestration from the atmosphere.

• Regulation (EU) 2023/857 amending Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement, and Regulation (EU) 2018/1999.

• Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on bindin annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement and amending Regulation (EU) No 525/2013.

• Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 ("European Climate Law").

There are different ways and feasibility paths to achieve net zero emissions, and different organizations should use an approach aligned with their size, sector, current emissions intensity, and specific circumstances and goals. However, organisations like the Science-Based Targets Initiative (SBTi) provide a comprehensive set of targets to align with sector-specific efforts.