Explainer: Carbon insetting vs offsetting

The document distinguishes between carbon offsetting, where companies purchase credits for external projects, and carbon insetting, which involves implementing nature-based solutions within a company's own value chain. It highlights risks in offsetting such as double-counting and additionality, while providing examples of insetting through companies like Ganni, Nespresso, and Accor.

• Carbon offsetting involves companies purchasing carbon credits from external entities to compensate for unavoidable emissions, but it cannot replace direct emissions reductions. Risks associated with this practice include double-counting, where two entities claim the same emission reduction, and lack of additionality, where projects are funded that would have occurred regardless of the payment.
• Carbon insetting is defined as the implementation of nature-based solutions—including reforestation, agroforestry, renewable energy, and regenerative agriculture—specifically within a company's own supply chain to reduce greenhouse gas emissions.
• Several companies have implemented insetting strategies: Ganni has committed to eliminating coal-generated heat or energy from stage 1-3 suppliers by 2025 and adopted circular processes; Nespresso has invested in tree planting within coffee farms to implement regenerative agriculture; and Accor has planted over 7 million trees across 400 farmed land parcels.

APA

Bhatia, V. (2022). Explainer: Carbon insetting vs offsetting. World Economic Forum. https://www.weforum.org/stories/climate-action/carbon-insetting-vs-offsetting-an-explainer/

Chicago

Bhatia, Vidhi. Explainer: Carbon insetting vs offsetting. World Economic Forum, 2022. https://www.weforum.org/stories/climate-action/carbon-insetting-vs-offsetting-an-explainer/.

Wikipedia

{{cite report |last1=Bhatia |first1=Vidhi |title=Explainer: Carbon insetting vs offsetting |publisher=World Economic Forum |date=18 March 2022 |url=https://www.weforum.org/stories/climate-action/carbon-insetting-vs-offsetting-an-explainer/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bhatia2022explainer, author = {Bhatia, Vidhi}, title = {{Explainer: Carbon insetting vs offsetting}}, institution = {World Economic Forum}, year = {2022}, month = mar, url = {https://www.weforum.org/stories/climate-action/carbon-insetting-vs-offsetting-an-explainer/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }