Standards ISO 14068-1 a PASSPORT 2060 differ in their approach to setting emission reduction targets and plans. ISO 14068-1 is more complex and precise, requiring more rigorous procedures and more extensive plans than PASSPORT 2060.

The main differences in the approach to setting emission reduction targets and plans:

• Hierarchical approach: ISO 14068-1 establishes a clear hierarchy of priorities: reduce – eliminate – compensateThis means that companies must first demonstrate efforts to reduce emissions and eliminate them before using offsets. PASSPORT 2060 does not have such a hierarchical approach.
• First year of application: According to PASSPORT 2060 the first application for carbon neutrality may be based solely on offsets. Conversely, ISO 14068-1 requires evidence of emission reduction already in the first year.
• Emissions reduction plan: ISO 14068-1 requires that the emissions reduction plan be in line with the Paris Agreement's +1.5°C objective. Plans must be ambitious but realistic. PASSPORT 2060 does not specify such a requirement. ISO 14068-1 requires 13 elements in the plan, while PASSPORT 2060 only 5.
• Timeframe: ISO 14068-1 establishes short-term and long-term emission reduction goals and a date for achieving net zero emissions that is economically and technically feasible. This plan should be based on scientific knowledge (e.g. IPCC, SBTi). PASSPORT 2060 allows for taking into account emission reductions achieved in the past before the first application period, while ISO 14068-1 does not allow it.
• Continuous emission reduction: ISO 14068-1 requires continuous reduction of carbon footprint, while PASSPORT 2060 does not require demonstration of carbon footprint reduction in the first year for successful application.
• Emission reduction in absolute values: ISO 14068-1 It favours emission reductions in absolute terms, not just in intensity. If intensity is used, it is necessary to explain how the absolute emission reductions will be achieved.
• Commitment to carbon neutrality: ISO 14068-1 requires that the commitment to carbon neutrality comes from top management and that a carbon management team be established, including at least one member of top management. PASSPORT 2060 it only requires that the entity commit to achieving (and maintaining) carbon neutrality.
• Emission removals: ISO 14068-1 includes emission removal into its methodology, while PASSPORT 2060 focuses mainly on emissions and their reduction. According to ISO 14068-1 details about emissions removal are a necessary part of the carbon neutrality application.
• Compensations: ISO 14068-1 requires entities to justify the purchase of offsets before considering other options to improve emission removal or emission reduction. PASSPORT 2060 does not require such justification. ISO 14068-1 also distinguishes between types of compensation and prefers removal compensation in the long term.

What does this mean for businesses?

• ISO 14068-1 brings stricter requirements to achieve carbon neutrality. Companies must demonstrate real emission reductions, not just purchasing offsets.
• ISO 14068-1 requires a more comprehensive approach towards carbon neutrality, including consideration of the entire value chain (from cradle to grave).
• Companies striving to achieve carbon neutrality according to ISO 14068-1, they must have more ambitious plans and they must demonstrate that their efforts are based on scientific knowledge and lead to real emission reductions.
• ISO 14068-1 is an international standard and replaces PAS 2060.
• ISO 14068-1 takes into account that carbon neutrality is a step on the path to achieving net zero.
• ISO 14068-1 requires more detailed reporting of indirect emissions (Scope 3).
• ISO 14068-1 sets more precise limits for the inclusion of projects and events.
• While PASSPORT 2060 accepts a wide range of carbon footprint calculation methods, ISO 14068-1 is much stricter and requires that organizational emissions be quantified according to ISO 14064-1 and product emissions according to ISO 14067.

Introduction ISO 14068-1 represents for companies a bigger challenge, but at the same time increases credibility their efforts towards carbon neutrality. Spring

Glossary of key terms

• Carbon neutrality: A state where greenhouse gas emissions are balanced by their removal or compensation, so that the overall net effect is zero.
• PASSPORT 2060: A publicly available specification for demonstrating carbon neutrality, sponsored by the British standards organization BSi.
• ISO 14068-1: An international standard for carbon neutrality that replaces PAS 2060.
• Offsets: Emission offsets through projects that reduce or remove greenhouse gases.
• Greenhouse gas emissions (GHG): Gases that trap heat in the atmosphere and contribute to global warming.
• Reducing emissions: Activities aimed at reducing greenhouse gas emissions from various sources.
• Emissions removal: Activities that actively remove carbon from the atmosphere, such as planting trees or carbon capture.
• Cradle-to-grave approach: Methodology for assessing the impacts of a product throughout its life cycle.
• Scope 1, 2 and 3 emissions: Categorization of emissions according to their source, with Scope 1 direct emissions, Scope 2 energy emissions and Scope 3 indirect emissions.
• Absolute emission reduction: A real reduction in total greenhouse gas emissions.
• Emission intensity: Reducing emissions in proportion to a certain economic or production indicator.
• Unlimited emissions: Emissions whose removal is technically and economically feasible.
• Residual emissions: Emissions whose elimination is currently technically and economically impossible.
• ISO 14064-1: Standard for quantification and reporting of greenhouse gases at the organizational level.
• ISO 14067: Standard for quantifying the carbon footprint of products.
• ISO 14064-2: Standard for quantifying greenhouse gases in projects.
• ISO 14064-3: Standard for verification of GHG statements.
• GHG Protocol: Guidance for calculating and reporting greenhouse gas emissions.
• CRP (Carbon Reduction Plan): Carbon footprint reduction plan.
• Additionality: Criteria for offset projects that guarantee that they would be implemented without the use of carbon credits.
• Permanence: Criteria for offset projects that guarantee long-term removal of greenhouse gases.
• Leakage: The impact of offset projects on changes in emissions elsewhere than at the project site.
• Double counting: Using the same emission reductions for more than one offset.