Are you familiar with offsetting and insetting?

In recent years, companies and governments have mobilized strongly in favor of sustainable practices.

One of the key terms that often comes up in this conversation is "carbon offsetting". Today, two key terms come up regularly and can sometimes be a source of questioning, especially for carbon novices: offsetting and insetting.

1. Offsetting

The definition:
Offsetting consists of offsetting the carbon dioxide emissions produced by a company by investing in projects that reduce or eliminate a similar quantity of CO2 elsewhere. To put it simply, it could almost be compared to the communicating vessels method.

How does it work? Companies can purchase carbon credits from projects around the world in activities such as :

- Afforestation and reforestation
- Development of renewable energy sources (wind farms, solar energy projects, etc.)
- Methane capture in landfills
- Energy efficiency projects

The benefits:
Offsetting enables companies to have a smaller net carbon footprint.
promotes the development and global expansion of sustainable projects.
For those unable to reduce their emissions directly, it offers a flexible solution.

2. Insetting

The definition:
Insetting is the direct integration of carbon reduction practices into a company's supply chain or operational sphere, ensuring that carbon reduction efforts are closely linked to its core business.

How does this work in practice? For example, companies can invest in:
- Sustainable farming methods in their supply chain.
- Restoring ecosystems that they directly affect.
- Creating renewable energy sources for their internal operations.

The benefits:
Insetting, which is directly linked to a company's activities, is more tangible and easier to measure.
Companies are also incentivized to improve their core activities rather than seek other carbon offset options.

So what's the best solution?

The truth is, there is no answer to this question. Offsetting and insetting offer unique and varied opportunities and challenges for companies. Offsetting can offer immediate and varied carbon footprint reduction opportunities for some companies, particularly those with global operations. For others, particularly those seeking to integrate sustainability into their brand ethos and operations, insetting can have a more direct and significant impact.

Article written by Guillaume, Carbon Project Manager at MyEasyFarm.

Are you looking for a solution to support your low-carbon projects and generate carbon credits?

Contact Guillaume or the other members of our expert team.

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