Carbon offsetting and insetting are two essential approaches for mitigating the effects of carbon emissions and helping the UK reach net zero. While both strategies aim to reduce a company’s carbon footprint, their focus and implementation differ.

Carbon offsetting

Carbon offsetting is when a company invests in carbon-reduction projects elsewhere to compensate for the carbon its value chains produce. This allows a company to purchase carbon credits from a project they don’t own or operate, such as renewable energy projects or reforestation initiatives. Offsetting is suitable for addressing emissions that cannot be immediately reduced through operational changes.

On the other hand, carbon insetting focuses on reducing or removing emissions within an organisation’s own value chain. It involves funding your carbon avoidance by implementing nature-based solutions like reforestation, agroforestry, renewable energy and regenerative agriculture. The primary difference between carbon offsets and insets is in the focus of the investment.

 

Carbon insetting

Carbon insetting is a more precise strategy companies use to reduce their emissions and carbon footprint within their supply chain or industry. It allows for a more targeted approach to emission reduction, as companies have direct control over the projects and can ensure they align with their sustainability goals.

When considering carbon offsetting vs insetting, it’s essential to understand that both approaches have their merits. Offsetting generally meets standard emission reduction criteria, while insetting offers a more tailored and potentially impactful solution. Companies can incorporate both strategies into their carbon reduction plans, using offsetting to address unavoidable emissions and insetting to drive long-term, sustainable change within their operations.

At Morson Projects, we understand the complexities of developing an effective carbon reduction plan. Our expert team can help you navigate the differences between carbon offsetting and insetting, ensuring you make informed decisions that align with your company’s sustainability goals. Contact us to learn more about how we can support your journey towards net zero.