Product Carbon Neutrality

Product carbon neutrality is achieved when the greenhouse gas (GHG) emissions generated across a product's life cycle are reduced as far as possible and the remaining emissions are balanced by an equivalent amount of carbon removed or avoided, resulting in a net-zero balance for that product. It is sometimes called a net-zero product or carbon neutral product.

How product carbon neutrality is reached

• Measurement: calculate the Product Carbon Footprint (PCF) following ISO 14067 or the GHG Protocol Product Standard, based on a life cycle assessment.
• Reduction: apply ecodesign, renewable energy and efficiency measures to cut the footprint at source.
• Balancing residual emissions: use high-quality carbon credits, prioritising carbon removals, for emissions that cannot yet be eliminated.
• Verification and communication: independent verification and a clearly scoped claim with a defined validity period.

Standards and guidelines

• ISO 14068-1:2023: the international standard on carbon neutrality, which sets requirements for credible claims and prioritises emission reductions over offsetting. It replaced the previous specification PAS 2060, which has been withdrawn.
• ISO 14067: for quantifying the product carbon footprint itself.
• SBTi Corporate Net-Zero Standard: sets science-based expectations at company level, requiring deep absolute reductions before any neutralisation of residual emissions through removals. A revised Version 2 was published in 2026.

Benefits

• Market differentiation and access to buyers requiring low-carbon products.
• Better alignment with green public procurement and eco-labelling requirements.
• A concrete contribution to corporate and national net-zero targets.

Challenges and criticism

• Over-reliance on offsets instead of genuine emission cuts.
• Variable credit quality and questions over the permanence of some removal projects.
• Risk of greenwashing if claims are made without transparent methodology. In the EU, the Empowering Consumers Directive (EU) 2024/825 tightens the rules on environmental claims, including generic carbon-neutral messaging.

Done with integrity, product carbon neutrality demands rigorous measurement, real reductions and high-quality removals, communicated transparently. At Manglai we help companies measure their carbon footprint and design credible reduction strategies. Discover how Manglai can help you.