Why Carbon Insetting is a Better Approach than Offsetting

Carbon insetting and offsetting are two critical approaches that can help companies mitigate the effects of carbon emissions. Carbon insetting focuses on reducing emissions within a company’s value chain by implementing nature-based solutions such as reforestation, agroforestry, renewable energy, and regenerative agriculture. By doing so, the company can reduce its carbon footprint and positively impact the communities, landscapes, and ecosystems associated with the value chain. One of the critical benefits of carbon insetting is that it can be tailored to a company’s specific needs and circumstances. For example, a company operating in a region with a high risk of deforestation can invest in reforestation projects to help preserve the natural environment while reducing its carbon footprint. Similarly, a company that relies heavily on agriculture can implement agroforestry practices to minimize soil erosion and sequester carbon in the soil. On the other hand, carbon offsetting is a process where companies compensate for their unavoidable emissions by purchasing carbon credits from companies that use renewable energy or are involved in projects that reduce emissions. While carbon offsetting is an essential tool, it should not be considered a substitute for direct emissions reductions by companies. Instead, it should be seen as a complement to insetting, which allows companies to reduce their emissions within their value chain before compensating for what is impossible to concentrate. Much under debate and fire due to not-so-expected performance, carbon offsetting should only be considered after insetting has been implemented and should involve collaboration with relevant and trustworthy partners. This is because offsetting can sometimes be seen as a way for companies to buy their way out of reducing emissions without addressing the root causes of the problem. By contrast, insetting requires companies to take a more holistic approach, working with local communities and stakeholders to create sustainable, long-term solutions. However, as many argue, carbon offsetting is the first step to decarbonization for many companies, hence shouldn’t be valued any less as a beginning has to be made. In conclusion, while carbon insetting and offsetting are fundamental approaches, insetting is better because it allows companies to reduce emissions within their value chain and only compensate for what is impossible to concentrate. By prioritizing insetting before offsetting, companies can reduce their carbon footprint sustainably and cost-effectively while benefiting local communities and ecosystems. In either case, the first step is knowing about the company’s carbon or greenhouse gas emissions. This is where Climatora Academy comes in handy with the GHG Accounting module.