Carbon insets are generated by implementing sustainable practices that reduce or remove carbon emissions within a company's own value chain.
Carbon offsets are generated by funding projects that reduce or remove carbon emissions outside a company's value chain.
A term that encompasses both carbon insets and carbon offsets. Carbon credits broadly represent a reduction in greenhouse gas emissions.
Both insets and offsets generate carbon credits, but the distinction lies in where the emissions reduction occurs (within the value chain for insets, external to it for offsets). At AgriSets, we refer to them as environmental assets.
Voluntary carbon credits allow individuals, organizations, and governments to offset their carbon footprint voluntarily. Voluntary markets operate outside regulatory compliance requirements and adhere to globally recognized standards set by organizations like Verra, the Gold Standard, and others. AgriSets operates within the voluntary carbon credit market.
Compliant carbon credits help companies comply with government-mandated emission reduction targets. Government agencies or regional bodies regulate involuntary markets with standards set by the governing body that may vary from country to country.
The key differences are that the voluntary markets are unregulated, while compliant markets are governed by government or regional bodies. Voluntary credits are used for offsetting or insetting, while compliant credits are used for compliance. Voluntary credits adhere to global standards, while compliant credits may have varying standards.
Please reach us at info@agrisets.com if you cannot find an answer to your question.
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