Types of Carbon Credits
Offsetting Strategies
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Compensation of residual emissions by a company or service through the purchase of carbon credits in regulated and voluntary markets.
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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
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Originating from projects that reduce carbon emissions, or from intervention and CO₂ sequestration projects within a company’s own value chain.
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Development of interventions inside the value chain as a way to mitigate the Greenhouse Gas (GHG) emissions generated by the company.
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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:
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Offsetting focuses on compensating emissions that cannot be avoided.
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Insetting focuses on reducing, avoiding, and capturing carbon emitted into the atmosphere.