What is Carbon Insetting?
Carbon insetting refers to the practice of integrating carbon emissions reduction strategies directly into an organisation’s supply chain or operational systems. It focuses on making changes within the organisation’s own sphere of influence to reduce its carbon footprint.
In the context of agricultural and food systems, carbon insetting can take various forms, including:
Sustainable Agricultural Practices: Implementing practices like agroforestry, cover cropping, reduced tillage, and improved livestock management to sequester carbon and reduce greenhouse gas emissions;
Waste Management: Improving waste management in food processing facilities through composting organic waste or capturing methane;
Energy Efficiency: Reducing emissions by using energy-efficient equipment and building insulation;
Renewable Energy: Switching to renewable energy sources like solar or wind power; and
Supply Chain Management: Working with suppliers to reduce emissions across the entire supply chain.
How is carbon insetting different from carbon offsetting?
While both carbon insetting and offsetting aim to counteract carbon emissions, they operate in distinct ways:
Carbon insetting focuses on reducing emissions within an organisation's value chain. This means changing its operations and working with its direct suppliers to implement more sustainable practices; and
Carbon offsetting involves investing in projects external to the organisation’s value chain that reduce or compensate for emissions elsewhere. These projects can include renewable energy development or reforestation and generate 'credits' that can be purchased to offset emissions that occur elsewhere.
In essence, carbon insetting prioritises direct action within an organisation's own sphere of influence, while offsetting relies on external projects to compensate for emissions.
Why is carbon insetting important?
Carbon insetting is important for several reasons:
Direct Impact: It directly addresses emissions within an organisation's own operations and supply chain, leading to more tangible and measurable results.
Multiple Benefits: Insetting activities often provide additional benefits beyond carbon reduction, such as cost savings, improved soil health, and enhanced relationships with suppliers.
Reputation and Market Advantage: Demonstrating a commitment to insetting can enhance an organisation's reputation and provide a competitive edge in markets where sustainability is valued.
How can a farmer benefit from a corporate food business’ insetting program?
Farmers can benefit from corporate insetting programs in several ways:
Technical Assistance and Training: Access to resources and training on sustainable practices;
Financial Incentives: Higher prices for sustainably produced products or direct payments for implementing specific methods;
Access to Markets and Long-Term Contracts: Opportunities to sell products to environmentally conscious consumers and secure stable income through long-term contracts;
Improved Soil Health and Productivity: Enhanced soil health leads to increased productivity and resilience to climate change;
Reputation Enhancement: Improved reputation as a sustainable producer, attracting more customers and potentially better terms with buyers; and
Reduced Costs: Long-term cost savings through improved efficiency and reduced reliance on expensive inputs.
A corporate insetting program might require changes to farming practices, but it can offer significant short-term and long-term benefits for farmers.
Carbon Sync’s soil carbon farming projects offer the opportunity for farmers to participate in Carbon Insetting projects with major packaged goods corporations. For further information, book an obligation-free telephone consultation with one of our team members.