Definition 1
Insetting means investing in a greenhouse gas emissions reduction or removal project [including through the use of nature-based solutions], verified by [insert name of voluntary standard], that takes place within a company’s value chain or value chain communities.
Drafting notes and guidance
Insetting can be used by a company to reduce or remove emissions in and along its value chain, including upstream, downstream and on-site emissions.
Insetting may also allow a company to have more transparency and control over certain risks relating to permanence, leakage and additionality, when compared to offsetting.
Distinguishing insetting from offsetting
The location of the greenhouse gas (GHG) reduction or removal project is what differentiates insetting and offsetting.
For more information on offsetting, please refer to the glossary term here.