Types of Carbon Credits

Offsetting Strategies

  • Compensation of residual emissions by a company or service through the purchase of carbon credits in regulated and voluntary markets.

  • The company can offset its residual carbon emissions (i.e., emissions that cannot be avoided) by purchasing credits generated by projects that carry out carbon compensation activities.

Insetting Strategies

  • Originating from projects that reduce carbon emissions, or from intervention and CO₂ sequestration projects within a company’s own value chain.

  • Development of interventions inside the value chain as a way to mitigate the Greenhouse Gas (GHG) emissions generated by the company.

  • This methodology seeks actions that go beyond reducing emissions — it also aims to positively impact communities, landscapes, and ecosystems.

Combined Use of Both Strategies

Offsetting and insetting strategies can be implemented together:

  • Offsetting focuses on compensating emissions that cannot be avoided.

  • Insetting focuses on reducing, avoiding, and capturing carbon emitted into the atmosphere.

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