Carbon Offsetting VS. Carbon Insetting

Carbonwise - Offsetting VS Insetting
Carbonwise - Offsetting VS Insetting

Companies are at different stages of their journey towards net zero. Some of the most immediate actions they can take in order to get there, fall into these categories: carbon offsetting and carbon insetting. But what is the difference between the two?

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This chart shows the total amount of man-made emissions created by the world's biggest polluters.
The amount of atmospheric CO2 has charted a steady climb higher. The Mauna Loa Observatory on the north flank of volcano of the same name
In the context of economics, an externality is a consequence of a business or industrial activity that affects third parties but which is not reflected
CO2 emissions from the industrial sectors led to a year-on-year drop in 2025 under the EU Emissions Trading System, according to verified European Commission figures
Refers to sectors in which greenhouse gas emissions are difficult to reduce. Includes industries such as iron and steel, cement, refining, chemicals, shipping, aviation and

11 June 2026

GLOSSARY
Externalities

In the context of economics, an externality is a consequence of a business or industrial activity that affects third parties but which is not reflected in market prices.

22 May 2026

HIGHLIGHT
Construction slowdown a factor in lower EU ETS CO2 emissions in 2025: EC

CO2 emissions from the industrial sectors led to a year-on-year drop in 2025 under the EU Emissions Trading System, according to verified European Commission figures released in April.

19 May 2026

GLOSSARY
Hard-to-abate

Refers to sectors in which greenhouse gas emissions are difficult to reduce. Includes industries such as iron and steel, cement, refining, chemicals, shipping, aviation and heavy duty trucks.

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