The term is often used in contrast to ‘offsetting’ and broadly describes the act of a company reducing and removing CO2 emissions along its own supply chain, otherwise refered to as Scope 3 emissions.
Insetting, although still a very novel approach, is swiftly gaining momentum, as more companies begin to adopt the practice, which, however, remains complex and all but straightforward.
Abatable’s whitepaper, published together with the International Platform for Insetting (IPI), aims to help companies navigate this space, as described by Pauline Blanc, Policy and Advocacy Lead at Abatable: “An incredible amount of work is going into developing insetting as a trusted decarbonisation practice.”
“But we need to accelerate climate and nature-positive action and key challenges remain, especially around emissions double counting and boundary setting. We expect to see critical steps forward on these issues in 2024. As our report demonstrates, project developers in the voluntary carbon market can also play a fundamental role by transferring their knowledge to this growing market to enable a positive future for climate, nature and people,” Blanc said.
The whitepaper focuses on the key questions facing this new practice, with particular attention given to its definition, the challenges to its integrity, its cost and the level of preparedness of corporations to adopt it.
One of the useful components included is a map of the insetting ecosystem, providing a structured view of the different types of companies and organizations involved in the field.
Michael Guindon, Executive Director of the IPI also commented on the whitepaper by saying: “Accelerating investment in credible insetting projects is critical to addressing the dual climate and nature crisis but, for this practice to scale, further convergence and alignment between standards, guidance, and data providers on insetting principles and best practices is urgently needed.
The full Abatable and IPI report can be accessed through this link.