What is the Net Zero Initiative (NZI)?
The Net Zero Initiative is a science-based framework designed to bring clarity to net-zero ambitions of companies. In particular, it provides a science-based methodology for evaluating an organization’s direct, avoided, and removed greenhouse gas emissions.
Unlike vague claims of “carbon neutrality” or over-simplified offsetting, the NZI framework gives clear guidelines to reduce the impact of companies and communicate about it more responsibly. Here are its key principles:
- The term “carbon neutrality” refers only to the goal of balancing emissions and removals on a global scale. This term does not apply to an organization.
- Companies must contribute to this goal by transforming their activities to align with a net-zero-compatible world.
- Emission reductions and removals must be accounted for separately.
- Companies can contribute to the net zero by selling a solution that decarbonises.
- Carbon finance can trigger reduction, avoidance and removals, but cannot net a company’s emissions. Financial contributions are counted separately.
The 3 pillars of the Net Zero Initiative
The NZI framework is built around three complementary pillars. To truly contribute to the global net-zero goal, organisations must take action in all three areas simultaneously:
- Reduce Your Own Emissions (Pillar A)
- Focus on cutting your direct (scope 1 and 2) and indirect (scope 3) emissions.
- Help Others Reduce Emissions (Pillar B)
- Sell products or solutions that enable companies to decarbonise their operations.
- Finance low-carbon projects outside your value chain that lead to measurable reductions.
- Develop Carbon Sinks (Pillar C)
- Invest in carbon removal projects both within and outside your value chain.
These pillars are complementary, not interchangeable. To make a real impact, all three need to work together.
Should I use the NZI framework?
The NZI framework is ideal for any organisation wanting to have a climate strategy backed up by science. Whether you’re a climate consultant helping businesses navigate their decarbonisation journey or a company ready to align with global net-zero targets, NZI provides the structure you need.
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Tapio is a carbon management software that allows companies and consultants to calculate and reduce carbon emissions.