The Promise and Peril of Carbon Neutrality Goals

The carbon neutrality goal has emerged as the most popular way for institutions to frame policy responses to climate change, largely because of its flexibility as a net-zero emissions target. We highlight two desirable features arising from this flexibility: the potential for reducing emissions at a lower cost and the potential for promoting distributive justice. To demonstrate the role of cost-effectiveness, we report estimates of average emissions abatement cost of solar electricity plants located (hypothetically) in each of the 48 states of the conterminous United States. We then explain how institutions may pursue distributive justice by targeting cobenefits of emissions-reducing projects to specific areas or groups. We also describe the two primary concerns with carbon neutrality goals: additionality and ethics. To allay these concerns, we suggest improvements to the basic integrity of carbon markets and ways in which institutions can commit to local decarbonization in tandem with carbon neutrality.