Neutralization

At the center of all climate protection measures is the avoidance and reduction of greenhouse gas emissions. However, even with ambitious reduction strategies, some emissions remain that cannot be fully avoided for technical or economic reasons.

Companies pursuing a net-zero target in line with the SBTi must actively remove these remaining emissions from the atmosphere. This process is referred to as neutralization. For example, carbon dioxide (CO₂) that has already been released is removed from the atmosphere using suitable methods and then stored permanently. Without such methods, global, European and national climate protection targets cannot be achieved.

Definition and distinction

A clearer understanding of neutralization methods first requires distinguishing them from other approaches to dealing with residual emissions:

• Neutralization
  Neutralization refers to the active removal of CO₂ from the atmosphere and its permanent storage. This can be achieved through nature-based methods such as afforestation or technical approaches such as Direct Air Capture and Storage (DACCS). The aim is to reduce the concentration of CO₂ already present in the atmosphere.
• Carbon capture and storage
  Carbon capture and storage (CCS) aims to capture CO₂ directly at the emission source, for example at industrial plants, and store it. It therefore contributes to reducing emissions. However, this method does not remove CO₂ that is already present in the atmosphere.
• Carbon offsetting
  Carbon offsetting is based on the principle of compensation: a company’s own emissions are balanced by financially supporting greenhouse gas reduction investments elsewhere. These offsetting measures often take place outside the company’s own value chain, known as “beyond value chain mitigation”, for example in wind power projects in countries of the Global South. For a long time, offsetting was considered a practical way to supposedly “neutralize” a company’s harmful climate impacts in the short term. Today, however, this approach is increasingly viewed critically. One criticism is that many projects are based on uncertain assumptions or do not deliver a permanently reliable climate impact. In addition, a strong focus on offsetting can delay necessary emissions reductions within a company’s own area of responsibility. If offsetting measures are used, certificates should always meet high internationally recognized criteria and be certified by established and reputable standards, such as the Gold Standard. It should also be ensured that the greenhouse gas reduction has already been achieved at the time the certificate is purchased (“ex-post certificates”) and does not still need to take place.

Methods for neutralizing greenhouse gas emissions

Greenhouse gas emissions can be neutralized through either technical or nature-based methods. While technical methods deliberately remove CO₂ from the air and store it permanently, nature-based approaches use natural carbon sinks.

Technical methods are still under development and are currently only usable to a limited extent due to high costs and energy requirements. In the long term, however, they are considered a promising means of achieving climate protection targets.

• Direct Air Capture and Storage (DACCS)
  Direct Air Capture and Storage (DACCS) removes CO2 directly from the air using chemical processes and then stores it permanently in a subsequent process. Initial pilot plants are already in operation, but high costs and energy requirements have so far prevented widespread application.
• Carbon Capture and Utilization (CCU)
  Carbon Capture and Utilization (CCU) involves incorporating captured CO₂ as a raw material into industrial products, such as plastics, chemicals or concrete. In this way, CO₂ can be temporarily bound and materially reused. The actual climate impact depends heavily on the lifespan of the products. Long-term storage effects have so far been limited, but the method is considered promising for CO₂ use in circular processes.
• Bioenergy with Carbon Capture and Storage (BECCS)
  Bioenergy with Carbon Capture and Storage (BECCS) involves releasing CO₂ from biomass through combustion or fermentation, capturing it and then storing it. The technology has been tested, but the availability of sustainable biomass is limited.

Nature-based methods such as afforestation, peatland restoration or optimized soil management rely on existing ecosystem processes. They are considered technically proven and cost-efficient. However, their long-term storage effect is uncertain. There are also potential land-use conflicts, for example regarding the availability of land for agriculture, nature conservation or settlement development.

• Biochar
  Biochar technology converts biomass into a stable form of carbon through pyrolysis, meaning thermal decomposition in the absence of oxygen. This solid, carbon-rich residue can then be permanently bound in soil or products. Initial market-ready applications are available.
• Enhanced weathering
  Enhanced weathering involves spreading rock powder on soils in order to bind CO₂ over the long term through natural reactions. The storage capacity is high, but the technology is still under development and requires a substantial amount of energy.