Carbon Insetting VS Offsetting

Carbon insetting focuses on reducing emissions within a company's supply chain, offering a more integrated approach than carbon offsetting. This approach targets Scope 1 and Scope 3 emissions, with the latter often being the most challenging to manage. Transport-related insetting projects, such as fuel switches from fossil- to low-carbon fuels, generate greenhouse gas (GHG) emissions reductions that can be allocated to your transport activities through different chain-of-custody methods, There are three chain-of-custody methods, further elaborated on below:

1. Direct Allocation:The emission profile of the low-carbon fuel is attached to the underlying physical flow, resulting in the emissions reductions being allocated to the carrier (Scope 1) and cargo owners (Scope 3) on the specific vessel or vehicle performing the fuel switch.
2. Mass balanceThe emission profile of the low-carbon fuel is detached from the underlying physical flow. In this case, the emissions reductions must be allocated within the same supply chain, resulting in the emissions reductions being allocated to a cargo owner (Scope 3) whose goods are transported by one of the vessels or vehicles of the carrier performing the fuel switch. However, the claimant of the Scope 3 reductions does not necessarily need to transport their goods on the specific vessel or vehicle performing the fuel switch.
3. Book and ClaimThe emission profile of the low-carbon fuel is detached from the underlying physical flow. Here, the emissions reductions are allocated to a similar supply chain, outside of the supply chain where the fuel switch has taken place. As a result, the emissions reductions are allocated to carriers (Scope 1) and/or cargo owners (Scope 3) while carriers outside of their supply chain perform the fuel switch intervention on behalf of them. Most importantly, the emissions reductions are allocated and claimed only once, a process CarbonLeap ensures through its partners.