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Is carbon insetting the next big thing?

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on the Financial Times or enjoy below

🗞️ Driving the news: As voluntary carbon markets face scrutiny, companies are turning to "insetting," a strategy focused on improving the carbon footprint of suppliers rather than relying on traditional carbon offset projects
• Insetting brings decarbonization spending closer to a company's operations, addressing concerns about the reliability and impact of traditional offsetting methods

🔭 The context: The emergence of "insetting" challenges the dominance of voluntary carbon markets as dissatisfaction with unregulated carbon credits and heightened regulatory scrutiny prompt companies to prioritize insetting, aiming to reduce the carbon footprint of suppliers rather than relying solely on voluntary carbon markets

🌍 Why it matters for the planet: Amidst declining interest in voluntary carbon offsets over market risks and regulatory concerns, insetting gains momentum as companies increasingly invest in their supply chains, opting for a more direct and transparent approach to emissions reduction that aligns with evolving environmental standards

⏭️ What's next: With the voluntary offset market under scrutiny and values declining, companies are likely to adopt insetting strategies for more direct and impactful sustainability efforts

💬 One quote: “Now you have gone from planting trees in a country that you probably have never gone to, to incentivising your [suppliers] to make key changes, which makes more business sense”  (Michael Smith, co-founder of venture capital firm Regeneration)

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