Guide to carbon emissions: Comparing offsetting vs insetting

In the face of escalating environmental challenges, managing carbon dioxide equivalent emissions has become an important aspect of global sustainability efforts. As businesses and individuals alike seek effective strategies to mitigate their carbon footprints, understanding the approaches of carbon offsetting and insetting is essential. This guide explores these strategies, providing insights into their implementation, benefits, and situational applications, and introduces GoGreen Plus as an innovative insetting solution.

Understanding carbon offsetting

Carbon offsetting is a mechanism that enables businesses, governments, and individuals to take responsibility for their carbon dioxide equivalent emissions by funding projects that reduce or remove greenhouse gases from the atmosphere elsewhere. This approach allows entities to effectively balance their emissions ledger.

The concept of carbon credits is integral to this process. Each carbon credit certifies the reduction or removal of one tonne of carbon dioxide or its equivalent in other greenhouse gases from the atmosphere. These credits can be bought and sold, and are often generated by the very offset projects that carbon offsetting supports. The price of carbon credits can vary widely depending on several factors, including the market in which they are traded, the type of credit, the project generating the credit, and overall demand and supply dynamics.

By participating in carbon offsetting, entities are essentially purchasing carbon credits associated with projects that have verifiably reduced or removed greenhouse gases from the atmosphere, thereby offsetting their own emissions.

Offset projects vary widely, encompassing a range of activities designed to either reduce future emissions or capture existing CO2 from the atmosphere. Renewable energy projects, such as wind farms, solar power installations, and hydroelectric dams, are popular choices for offsetting because they replace fossil-fuel-based electricity generation with clean, renewable sources, thereby reducing future emissions. 

Exploring carbon insetting

In contrast, carbon insetting embeds carbon reduction initiatives within a company's own supply chain or ecosystem. This method directly addresses emissions related to the company’s activities, enhancing sustainability from within. Insetting involves projects such as improving energy efficiency in manufacturing processes or adopting sustainable agricultural practices in sourcing materials.

Key differences between insetting and offsetting include the scope of impact and the direct involvement of the business in emissions reduction efforts. Insetting offers additional benefits like reducing wastage along the supply chain, strengthening supply chain resilience, enhancing brand value, and fostering closer stakeholder engagement.

In-depth comparison: Offsetting vs. Insetting

While both approaches aim to reduce carbon footprints, their application and impact vary. Offsetting is suitable for addressing emissions that cannot be immediately reduced through operational changes. In contrast, insetting focuses on long-term sustainability by integrating emissions reduction into the core business strategy.

The choice between offsetting and insetting depends on specific circumstances, such as the nature of the business, available resources, and sustainability goals. Insetting, however, often yields more substantial benefits by promoting systemic changes and enhancing the environmental and social value chain.

Introduction to DHL Express’ GoGreen Plus

DHL Express’ GoGreen Plus is a pioneering green logistics initiative that exemplifies the insetting approach. It focuses on the avoidance of emissions and investment in green technologies and fuels, such as Sustainable Aviation Fuel (SAF), to reduce the environmental impact of shipping operations. 

SAF is an eco-friendly alternative to conventional jet fuel, made from sustainable resources like used cooking oil, animal fats, and agricultural waste. They offer a lower environmental impact by operating on a carbon-neutral cycle: the carbon released upon burning is equal to the carbon absorbed by their feedstocks during growth. Unlike fossil fuels, which release carbon that has been sequestered for millennia thereby increasing atmospheric CO2 levels, SAF's utilisation can lead to up to an 80% reduction in carbon emissions, aiding in diminishing the aviation industry’s impact on global warming.