Google has made a significant shift in its environmental strategy by discontinuing its extensive purchase of cheap carbon offsets, as detailed in the company’s latest environmental report. This decision marks the end of Google’s long-standing claim to carbon neutrality, pivoting instead towards achieving net-zero carbon emissions by 2030.
Since 2007, Google, a subsidiary of Alphabet Inc., had maintained that its operations were carbon neutral, achieved through purchasing carbon offsets to compensate for emissions from its buildings, data centers, and business travel. However, Google’s 2023 environmental report indicates a departure from this approach, stating, “Starting in 2023, we’re no longer maintaining operational carbon neutrality.” This shift reflects Google’s response to evolving sustainability standards and market dynamics. A company spokesperson explained, “In line with market changes — including a more robust carbon-removal ecosystem catalyzed by our efforts — we’ve revised our strategy to focus on avoiding and reducing greenhouse gas emissions to meet our absolute reduction targets.”
Impact of Artificial Intelligence
This realignment coincides with Google’s and other major tech firms’ intensified investments in artificial intelligence (AI), known for its substantial resource consumption. A Bloomberg News investigation found that Google’s total emissions in 2023 surged by 48% compared to 2019, accompanied by a doubling of its overall energy usage during the same period. Similarly, Microsoft’s AI activities contributed to a 30% increase in emissions since 2020, despite its commitment to achieving carbon negativity by 2030.
Carbon neutrality entails balancing emissions by removing an equivalent amount of carbon dioxide from the atmosphere. Many companies utilize inexpensive carbon offsets, where each credit represents one ton of emissions avoided through projects such as forest protection or clean energy initiatives.
However, critics argue that these offsets often fail to significantly reduce actual emissions. Many forest protection projects exaggerate their effectiveness, and renewable energy projects frequently proceed without relying on offset funding. Consequently, the credibility of corporate claims of carbon neutrality has been questioned.
Google’s Transition to Direct Emissions Reduction
In 2022, Google purchased nearly 3 million tons of carbon offsets to compensate for its direct emissions and business-related travel. While specific project details were not disclosed, Google confirmed that these credits met verification standards set by entities like the Climate Action Reserve (CAR), American Carbon Registry (ACR), Verified Carbon Standard (VCS), and the UNFCCC Clean Development Mechanism.
Acknowledging scrutiny over offset-based claims, Google expressed a desire in a 2021 Bloomberg Green article to achieve carbon neutrality without relying heavily on offsets. The company’s revised strategy now emphasizes direct emissions reductions and the procurement of carbon-removal credits to address residual emissions. Though more costly, these credits are considered more effective in verifiably removing carbon dioxide from the atmosphere.
To bolster the carbon-removal market, Google committed $200 million in 2022. The latest report highlights agreements to acquire 62,500 tons of carbon removal from firms like Charm Industrial, Lithos Carbon, and CarbonCapture, scheduled for delivery between 2024 and 2028. Despite representing a fraction of Google’s total emissions — which amounted to 14.3 million tons of carbon dioxide equivalent last year — these efforts underscore Google’s commitment to ambitious sustainability targets.
“We remain dedicated to the sustainability goals we’ve set,” affirmed a Google spokesperson. “Achieving net-zero emissions by 2030 is a highly ambitious goal, and we are fully committed to collaborative efforts to fulfill this commitment.”
Upholding Science-Based Targets
Google reaffirmed its alignment with the Science-Based Targets initiative (SBTi), which monitors and recommends emissions reduction goals for corporations. The initiative advocates prioritizing direct emissions reductions and utilizing offsets only for residual emissions, reflecting a broader industry shift towards more rigorous climate action.
Google is not alone in reevaluating its approach to carbon credits. Companies like EasyJet Plc. and Interface Inc. have also ceased purchasing carbon offsets associated with carbon-neutral claims, contributing to a decline in the offset market. Both companies have had their climate targets verified by SBTi in recent years, signaling a broader reassessment of environmental commitments.
Expert Insights on Offsetting
Policy expert Fabiola De Simone of Carbon Market Watch critiques the concept of offsetting, arguing that it fails to address the fundamental issue of emissions’ impact on the environment. While recognizing the necessity of carbon removal to meet stringent climate targets, De Simone emphasizes that offsetting should not substitute genuine emissions reductions. “It’s encouraging that companies are prioritizing emissions reduction,” De Simone remarked, emphasizing the importance of concrete actions over symbolic gestures in combating climate change.
