Carbon Insetting vs Carbon Offsetting
What is Carbon Insetting?
Carbon insetting is a sustainable practice aimed at reducing carbon emissions by investing in projects within a company’s own supply chain or operations. Unlike carbon offsetting, which involves purchasing carbon credits from external projects to compensate for emissions, carbon insetting focuses on directly addressing and reducing emissions across scopes 1, 2 & 3.
Insetting projects typically involve implementing renewable energy systems, improving energy efficiency, or adopting sustainable practices. By investing in these projects, companies not only reduce their carbon footprint but also contribute to the development of local communities, increasing the efficiency of supply chains and promoting environmental stewardship.
What is Carbon Offsetting?
Carbon offsetting, on the other hand, involves compensating for carbon emissions by funding external projects that reduce greenhouse gas emissions elsewhere. These projects can include initiatives like reforestation, renewable energy projects, or methane capture from landfills. Companies purchase carbon credits equivalent to their emissions, effectively offsetting their carbon footprint.
Carbon offsetting has gained popularity as a means for companies to achieve carbon neutrality or reduce their net emissions. While it provides an avenue for companies to take responsibility for their carbon emissions, it does not directly address or reduce emissions at the source like carbon insetting.
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