Carbon Insets

Carbon offsets continue to fall out of favor, both among climate experts and in corporate boardrooms. Concerns about their effectiveness are boosting the emerging strategy of carbon “insets,” especially among highly influential major corporations within the agribusiness sector. While carbon offsets are typically purchased from third parties for projects far removed from corporate operations, carbon insets are implemented within a corporation’s own supply chains or operations, which can account for up to 80 percent of its carbon footprint.  

Carbon insets could be far more impactful than carbon offsets for climate action. Rather than trying to compensate for their emissions, companies using insets seek to reduce their emissions. For example, a company’s inset strategies might include powering manufacturing facilities with renewable energy and transitioning shipping and delivery to electric vehicles.   

Lowering global emissions through carbon insets could improve local climate outcomes and reduce hazard risks. Planners should evaluate how this emerging private-sector approach could potentially inform cities’ climate mitigation and greenhouse gas reduction strategies.