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Environmental Update (February 2010)

Being 'carbon neutral'

More and more businesses wish to state that their operations or products are 'carbon neutral' in order to demonstrate a commitment to tackling climate change. However, until recently there has been no definition of what was meant by "carbon neutral".

The Government felt that giving a formal definition would help increase the effectiveness of the term and avoid public cynicism caused by inconsistent or misleading usage of the term. It also felt that there needed to be a level playing field; and provide both the motivation and an indicator of action on greenhouse gas emissions. After a period of consultation, the Department of Energy & Climate Change (DECC) published guidance on carbon neutrality. This includes the following definition:

"Carbon neutral means that – through a transparent process of calculating emissions, reducing those emissions and offsetting residual emissions – net carbon emissions equal zero."

This requires 3 stages to be followed:

  1. Calculating emissions: determining what emissions are to be calculated, the boundaries in terms of type of gases, organisational context and sources of emissions and then applying appropriate emissions factors.
  2. Reducing emissions: assessing what internal emissions reductions can be made through steps such as energy efficiency and then determining how reductions will be calculated, verified and communicated.
  3. Offsetting residual emissions: by acquiring carbon credits to offset any residual emissions after calculating emissions and achieving internal reductions.

When making any statement about carbon neutrality the DECC's states that:

  • There should be clear information on the emissions measured, the reductions

made and offsets purchased;

  • It should be linked to a particular and specified period of time; and
  • It should be reviewed annually.

The DECC have also stated that a carbon neutral claim which is based solely upon calculation of emissions and offsetting should NOT be made.

For more information on how to calculate, reduce and off-set your carbon foot-print, contact the Mentor Environmental Service, on 0800 634 7006.