Carbon Offsetting VS. Carbon 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
A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market.
In order to ensure the global reduction in GHG emissions, carbon reductions need to be permanent. Permanence is considered when approving a carbon offset project
On 17th July, the European Commission unveiled its much-anticipated legislative proposal to overhaul the EU’s compliance carbon market, the EU Emissions Trading System (EU ETS).

2 September 2026

GLOSSARY
Market Stability Reserve

A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market.

27 August 2026

GLOSSARY
Permanence

In order to ensure the global reduction in GHG emissions, carbon reductions need to be permanent. Permanence is considered when approving a carbon offset project such as avoided deforestation.

27 July 2026

HIGHLIGHT
EC seeks to overhaul EU’s compliance carbon market with proposed new laws

On 17th July, the European Commission unveiled its much-anticipated legislative proposal to overhaul the EU’s compliance carbon market, the EU Emissions Trading System (EU ETS).

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