Carbon offsetting or carbon insetting?

What do the International Air Transport Association, The European Union, and the U.S. Government all have in common? 

They all want to achieve net zero carbon emissions by 2050.  

And they are not alone.  

Many organizations are trying their best to cut back on their emissions in order to achieve this goal. 

But what is it, and how do you actually do it? 

Net Zero 

Reaching absolutely zero emissions is a lot easier said than done.  

Which is why most organizations want to achieve “net zero” – and not just “zero”. 

This means balancing out the emissions produced with removing an equal amount from the atmosphere.  

And how do you do that?  

Well, some of you have probably heard of carbon offsetting - but have you ever heard of carbon insetting? 

Let’s take a look at both of them! 

Carbon Offsetting 

Carbon offsets are investments in projects that can reduce carbon emissions elsewhere to compensate for your own carbon emissions.  

The textbook example would be reforestation projects. 

By planting more trees, more carbon emissions can be removed from the atmosphere. 

It sounds great, we know – but in reality, it is only an indirect way to lower the net emissions and not the actual emissions. 

And keep in mind, the upcoming EU Empowering Consumers Directive will prohibit climate claims based solely on offsetting schemes. 

Carbon Insetting 

While carbon offsetting is about investing in projects outside your supply chain to compensate for carbon emissions, carbon insetting is investing in projects within your supply chain. 

These interventions in the company’s supply chain should result in carbon emissions reductions.  

So on the one hand, you can buy your way into balancing your emissions.

On the other hand, you can invest internally in your supply chain to reduce impact.  

What should you consider in your company?

Both aspects have their own advantages and disadvantages, so it is not just a question about this or that.  

Insetting projects take up a lot of time and resources, but they allow you to increase transparency and build close relationships in your supply chain. 

Offsetting might be easier for smaller companies as it gives the opportunity to group their money together towards an offsetting project. 

But before you even start to consider if you should inset or offset your emissions, you should take a look at your emissions.  

The first step is creating a decarbonisation strategy – and don’t worry, we can help you! 

That includes carbon calculations and setting up the strategy. 

Reach out to us here, and let’s chat about what your options are and what to do from there.