Carbon offsetting vs. carbon insetting: which approach is suitable for reducing emissions

• Carbon offset and carbon insetting as approaches to reducing greenhouse gas emissions
• Carbon offset is being criticized as a last resort to reduce the footprint
• Carbon insetting as an alternative to reduce greenhouse gas emissions within the value chain

In the course of the global climate crisis, companies are increasingly looking for solutions to reduce their greenhouse gas emissions. Two approaches currently being discussed are carbon offset and carbon insetting. Both methods aim to reduce CO2 emissions, but differ in their implementation and effect.

Carbon Offset: As a last resort?

Carbon Offset enables companies and private individuals to offset their own CO2 emissions by purchasing CO2 certificates from climate protection projects. However, critics see this method as an incentive not to have to change one's own behavior. There is also the danger of support for autocratic regimes when choosing climate protection projects. In order to minimize these risks, clear standards must be introduced. Climate protection organizations should encourage customers to avoid and reduce emissions before offsetting. However, when nothing else is possible, compensation can be a last resort.

Carbon Insetting: Doing more good instead of less bad

Carbon insetting, on the other hand, relies on the reduction of greenhouse gas emissions within a company's own value chain. Nature-based solutions such as reforestation, agroforestry, renewable energy and regenerative agriculture can be used here. Insetting focuses on doing more good, rather than less bad, within your own value chain. Companies can examine their supply chains for hotspots of greenhouse gas emissions and implement more environmentally friendly solutions and processes.

While carbon offsetting is an important step, it cannot be viewed as a substitute for direct emissions reductions. However, insetting has the potential to bring about long-term change in business practices while protecting biodiversity. Companies like Ganni and Nespresso are already using renewable energy technologies and regenerative agriculture to reduce their emissions while creating new income opportunities and improvements for communities.

It is important that companies and climate protection organizations not only rely on short-term solutions, but also develop long-term strategies to reduce greenhouse gas emissions sustainably. Both carbon offset and carbon insetting can play a role here. However, organizations should carefully consider which method best fits their goals and practices.