Blog Post
Navigating Corporate Climate Solutions: Carbon Insetting vs Offsetting
Understanding Carbon Insetting
Carbon insetting involves reducing emissions within a company's supply chain. This approach targets Scope 3 emissions, which are often the most challenging to manage. Transport related insetting projects, in our case fuel switches from fossil- to biofuels, generate greenhouse gas (GHG) emissions reductions that can be allocated to your transport activities because they have a direct bearing on these activities.
This approach may require some proof of connection between supply chains and evidence of causality, necessitating careful consideration of the right insetting solution for your business, which is CarbonLeap’s bread and butter.
Understanding Carbon Offsetting
On the other hand, carbon offsetting involves buying carbon credits to compensate for a company’s emissions. This strategy addresses residual emissions that remain after efforts to reduce or remove as many emissions as possible. Typical offsetting projects include reforestation initiatives outside the company’s value chain. Offsetting has faced increasing criticism for potentially misleading claims, as equating external emission reductions with ongoing emissions can be problematic.
What next?
We need to take urgent action and gone are the days of investing in dodgy carbon schemes where you have little visibility and control over unrelated carbon compensation. Integrating carbon reduction through insetting could provide the comprehensive approach required.
Trust and transparency pertaining to carbon reductions is therefore vital, especially as the origins, pricing and impact of carbon insets is potentially obfuscated, undermining the credibility of these units among companies who seek to reach energy transition objectives.
That’s where CarbonLeap comes in as the experienced and intelligent solutions provider who can best offer you products that help you navigate the complexities of supply chain decarbonization, ensuring the options you take, are not only the best in class, but also the most optimal financially for growth and efficacy.
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