NEW STANDARD - Effective 1 January 2025

ISO 14068-1: The New Carbon Neutrality Standard

Replacing PAS 2060 with Stricter Requirements for Genuine Climate Action

What Changed: PAS 2060 → ISO 14068-1

❌ PAS 2060 (Retired)

  • Allowed immediate offsetting of all emissions
  • General reduction commitment sufficient
  • UK-specific standard (BSI)
  • Carbon Management Plan required
  • Annual verification cycles

✅ ISO 14068-1 (Current)

  • Mandates demonstrated reductions before offsetting
  • Quantified reduction targets with timelines
  • Global ISO standard
  • Carbon Neutrality Management Plan (enhanced)
  • Continuous monitoring requirements

Key Message:

ISO 14068-1 prevents "offsetting without action" by requiring organisations to demonstrate real emission reductions before using carbon credits. This aligns with net-zero principles while allowing carbon neutrality claims.

ISO 14068-1 Requirements

Mandatory Requirements

GHG Quantification & Reporting

Complete inventory following ISO 14064-1, including all Scope 1, 2, and material Scope 3 emissions

Emission Reduction Hierarchy

1. Avoid emissions, 2. Reduce emissions, 3. Remove emissions, 4. Offset residual emissions (in this order)

Carbon Neutrality Management Plan

Documented plan with quantified targets, timelines, and implementation measures for reduction

Demonstrated Progress

Evidence of actual emission reductions achieved before claiming carbon neutrality

Enhanced Requirements (vs PAS 2060)

Reduction Priority

Must show year-on-year absolute or intensity reductions before offsetting is permitted

Enhanced Offset Criteria

Stricter additionality requirements and preference for removal credits over avoidance

Continuous Monitoring

Ongoing performance monitoring and reporting, not just annual cycles

Stakeholder Communication

Clear disclosure of reduction vs offset proportions in carbon neutrality claims

Transitioning from PAS 2060 to ISO 14068-1

Transition Timeline

  • 1 January 2025: PAS 2060 officially retired
  • Current PAS 2060 certificates: Valid until expiry date
  • New certifications: Must use ISO 14068-1
  • Renewals: Must transition to ISO 14068-1
1

Gap Assessment

Identify differences between your current PAS 2060 approach and ISO 14068-1 requirements

  • • Review reduction evidence
  • • Assess offset portfolio
  • • Update management plan
2

Enhance Reduction Strategy

Develop quantified reduction targets to meet ISO 14068-1's stricter requirements

  • • Set specific % targets
  • • Define clear timelines
  • • Document measures
3

Re-verification

Engage UKAS-accredited verifier for ISO 14068-1 assessment and certification

  • • Same verifiers as PAS 2060
  • • Enhanced documentation
  • • New certificate issued

ISO 14068-1 Implementation Process

Phase 1

Establish Baseline

2-3 months
  • Complete GHG inventory (ISO 14064-1)
  • Set organisational boundaries
  • Identify material Scope 3 categories
  • Calculate baseline emissions
Phase 2

Develop Reduction Strategy

1-2 months
  • Apply emission reduction hierarchy
  • Set quantified reduction targets
  • Create Carbon Neutrality Management Plan
  • Identify reduction initiatives
Phase 3

Implement Reductions

6-12 months
  • Execute reduction initiatives
  • Monitor and measure progress
  • Document reduction evidence
  • Achieve measurable reductions
Phase 4

Offset & Verify

1-2 months
  • Source high-quality carbon credits
  • Prioritise removal over avoidance
  • Third-party verification
  • Issue carbon neutrality statement

ISO 14068-1 Investment & ROI

Cost ComponentPAS 2060 (Historical)ISO 14068-1 (Current)Difference
GHG Assessment£5,000 - £25,000£7,000 - £30,000More detailed Scope 3
Verification£3,000 - £15,000£5,000 - £20,000Enhanced requirements
Reduction ImplementationOptional timingRequired upfrontMust show progress
Carbon Credits100% of emissionsResidual onlyLower offset costs
Total First Year£15,000 - £75,000£20,000 - £80,000Higher quality outcome

ROI Benefit: While initial costs are higher, ISO 14068-1 drives real emission reductions, lowering energy costs and reducing future carbon credit purchases. Typical payback: 2-3 years.

ISO 14068-1 Verification in the UK

UKAS-Accredited Verifiers

The same verification bodies that provided PAS 2060 certification now offer ISO 14068-1 verification:

  • • BSI (British Standards Institution)
  • • SGS United Kingdom
  • • Bureau Veritas UK
  • • DNV GL
  • • TÜV UK
  • • Carbon Trust

Verification Process

  • 1.Document review of GHG inventory and management plan
  • 2.Evidence verification of reduction achievements
  • 3.Offset portfolio assessment and validation
  • 4.Site visits (if required)
  • 5.Verification statement and certificate issuance

Carbon Credits Under ISO 14068-1

Enhanced Offset Requirements

✅ Preferred (Removal Credits)

  • Direct air capture and storage
  • Afforestation and reforestation
  • Soil carbon sequestration
  • Biochar and BECCS
  • UK Woodland Carbon Code

⚠️ Acceptable (Avoidance Credits)

  • Renewable energy projects
  • Energy efficiency
  • Avoided deforestation (REDD+)
  • Methane capture
  • Must meet strict additionality

ISO 14068-1 Preference: The standard explicitly favours removal credits over avoidance credits, aligning with net-zero principles. Organisations should transition their offset portfolio accordingly.

ISO 14068-1 Frequently Asked Questions

Can we still claim carbon neutrality immediately under ISO 14068-1?
No. Unlike PAS 2060, ISO 14068-1 requires demonstrated emission reductions before you can claim carbon neutrality. You must show measurable progress against your reduction targets, typically requiring 6-12 months of implementation before your first carbon neutrality claim.
Is our existing PAS 2060 certification still valid?
Yes, existing PAS 2060 certificates remain valid until their expiry date. However, when you renew, you must transition to ISO 14068-1. New carbon neutrality claims after 1 January 2025 should reference ISO 14068-1, not PAS 2060.
What reduction percentage does ISO 14068-1 require?
ISO 14068-1 doesn't specify a fixed percentage but requires "demonstrable reductions" aligned with climate science. Best practice suggests minimum 5-10% annual reductions in absolute emissions or carbon intensity. Your Carbon Neutrality Management Plan must include specific, quantified targets.
How does ISO 14068-1 relate to net zero?
ISO 14068-1 is a stepping stone to net zero. While net zero requires 90-95% emission reductions by 2050, ISO 14068-1 allows carbon neutrality claims now with progressive reductions and offsetting. It aligns withScience Based Targetsand prepares organisations for net-zero transition.
Which UK companies need ISO 14068-1?
ISO 14068-1 is voluntary but increasingly expected. Companies making carbon neutral claims, bidding for public sector contracts, or responding to customer/investor ESG requirements should consider it. It complements mandatory reporting like SECR andTCFD.
Can we use the same verifier as PAS 2060?
Yes. All UKAS-accredited PAS 2060 verifiers (BSI, SGS, Bureau Veritas, etc.) now provide ISO 14068-1 verification. The verification process is similar but with enhanced focus on reduction evidence and offset quality assessment.

Achieve ISO 14068-1 Carbon Neutrality

Transition from PAS 2060 or start your carbon neutrality journey with the new global standard

Free ISO 14068-1 Readiness Assessment

Understand your current position and pathway to ISO 14068-1 certification