Demystifying Carbon Removals in the Context of Sub-Global Net-Zero Targets

Abstract

The concepts of net-zero greenhouse gas (GHG) emissions and GHG-neutrality are emerging as fundamental principles for initiatives to address climate change ranging from the global to the corporate scale. Offsetting emissions by using carbon credits features in many sub-global net-zero and GHG-neutrality claims and pledges. This paper shows that regardless of whether a sub-global entity offsets its emissions using carbon credits based on GHG emission reductions or removals, the outcome in terms of impact on net global GHG emissions is the same. Despite this, assertions that the use of carbon credits based on emission reductions is insufficient in the context of offsetting emissions for net-zero claims at sub-global scales are gaining acceptance. This article argues that such assertions are based on an incorrect setting of assessment boundaries and related misconceptions. Path choices for the share of carbon credit demand from emission reductions versus removals have important implications for the possibility to reach global climate goals and should be guided by the robust application of relevant GHG accounting principles. The results presented in this article have fundamental implications for what kind of GHG mitigation action may be considered adequate in relation to entities’ claims concerning making no contribution to net accumulation of GHG in the atmosphere.