With increasing pressure to reach net zero, businesses and governments must understand key emissions reduction strategies. Two common approaches in the voluntary carbon market are carbon avoidance and carbon removals—both generate carbon credits, but they serve different purposes.
Key definitions:
Carbon Avoidance: Prevents future emissions from being released into the atmosphere by reducing or eliminating sources of greenhouse gases.
Carbon Removals: Extract CO2 already present in the atmosphere and store it permanently, sequestering it in geological formations, biomass, or other long-term storage solutions.
Why this distinction matters
While both approaches play a role in mitigating climate change, carbon avoidance prevents new emissions, whereas removals address existing CO₂ already driving climate impacts.
For businesses, understanding this difference is critical when developing credible climate strategies. While avoidance-based offsets provide immediate benefits, they do not actively remove emissions. A science-backed approach should prioritise direct decarbonisation, reducing emissions at the source, before considering high-quality carbon removal offsets to neutralise residual emissions.
What is carbon avoidance?
Carbon avoidance reduces future emissions but does not remove existing carbon from the atmosphere.
Common types of carbon avoidance:
- Funding renewable energy projects to replace fossil fuels (wind, solar, hydropower).
- Protecting forests from deforestation through conservation projects.
- Improving energy efficiency in buildings and industrial processes.
Pros:
- Reduces future emissions.
- Can be more cost-effective than carbon removal projects.
- Supports the development of cleaner technologies and infrastructure.
Cons:
- Does not address existing CO2 in the atmosphere.
- Impact can be difficult to verify.
- Risk of "greenwashing" if projects lack additionality and permanence.
What is carbon removal?
Carbon removal physically extracts CO2 from the air via nature-based solutions or engineered solutions.
Common types of carbon removals:
- Nature-based solutions such as afforestation, reforestation, soil carbon sequestration
- Engineered solutions like direct air capture (DAC), which filters CO2 from the air and stores it underground, or biochar, which converts organic material into a stable form of carbon storage that can enhance soil quality, offering both climate and agricultural benefits.
- Mineralisation, which involves capturing CO2 and converting it into stable minerals).
Pros:
- Actively reduces the concentration of greenhouse gases in the atmosphere.
- Essential for achieving net zero targets, especially for industries with stubborn emissions.
- Can offer long-term carbon storage.
Cons:
- Often more expensive than carbon avoidance projects.
- Engineered solutions can be energy-intensive.
- Nature-based solutions require long-term land management and are vulnerable to natural disturbances.
How to use carbon avoidance & carbon removals effectively
A well-informed approach to carbon avoidance and removals is crucial for businesses aiming to build a credible climate strategy. This affects everything from emissions reduction planning to carbon neutrality and net zero commitments, as well as navigating the complexities of compliance and voluntary carbon markets.
Emissions reduction plans
Organisations should prioritise direct emissions reductions, also known as decarbonisation. This means investing in renewable energy sources, improving energy efficiency, and adopting sustainable business practices that minimise environmental impact before considering offsets. Carbon avoidance projects offer immediate benefits by limiting emissions at their source, but they should be viewed as a supplementary, short-term strategy rather than a substitute for direct reductions. Since avoidance does not remove historical emissions, relying on it alone is insufficient for long-term climate goals.
Carbon neutrality vs. net zero commitments
For businesses, with carbon neutral or net zero ambitions, the distinction is important as it dictates how avoidance and removals are used. Carbon neutrality allows businesses to balance emissions with offsets, often relying on avoidance projects. However, without meaningful reductions, this approach can be perceived as greenwashing.
Net zero, on the other hand, demands a far more rigorous approach. Achieving net zero requires a 90% reduction in emissions, with only residual emissions offset by verified carbon removals. This requires investment in high-quality carbon removal technologies or nature-based solutions that actively extract CO2 from the atmosphere. The emphasis on removals reflects the reality that fully eliminating all emissions is often infeasible for many sectors like aviation, cement production, and heavy manufacturing. Durable carbon removals provide a viable path for net zero for these industries.
While avoidance offsets do not count toward net zero, they remain useful in transition strategies toward long-term decarbonisation.
Compliance and voluntary carbon markets
Regulatory bodies are increasing scrutiny on carbon offsets, shifting toward prioritising real emissions reductions and durable carbon removals over avoidance-based offsets, which often face concerns about additionality, permanence, and potential "leakage" (where emissions reductions in one area are offset by increased emissions elsewhere).
Organisations should prioritise high-quality carbon removals that meet stringent criteria–measurability, additionality, and permanence–verified by reputable third-party certifiers like Gold Standard (GS) and the Global Carbon Council (GCC). Investing in cheap avoidance credits carries reputational and compliance risks.
Where to start
Carbon avoidance and carbon removals are not interchangeable. While both play a role in climate action, avoidance prevents future emissions while removals actively extract CO2. Businesses should prioritise direct reductions and use offsets strategically, focusing on high-quality removals for any residual emissions.
At Zevero, we advocate for a decarbonisation-first approach– helping companies reduce emissions at the source before considering removals as part of a broader sustainability strategy. While carbon neutrality can be a useful stepping stone, it should not be the end goal. Instead, we guide organisations toward net zero, prioritising long-term impact over short-term fixes. We believe that a commitment to real reductions, combined with responsible carbon removal investments, offers the most effective path to a truly sustainable future.
Contact us today to learn more about reducing your carbon footprint.
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