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Offsetting is not the cheap option

Offsetting purchases 2.5 to 3.5 times more credits over time, and each extra credit is an emission the company has not addressed.

By Carbon3 team1 min read

Two bar charts by sector (apparel, energy, food, steel). Left: insetting is cheaper than offsetting once carbon is priced. Right: offsetting buys 2.5 to 3.5 times more credits for the same outcome.

The idea that offsetting is the cheap option turns out to be wrong in most of the economy, and more wrong over time. Meanwhile insetting primarily focuses on genuine reductions and strategic investments.

Offsetting does not implement real emissions reductions and purchases approximately 2.5 to 3.5 times more credits over time: for energy and power, this amounts to 297 million tonnes compared to 104 million tonnes. Each additional credit tonne represents an actual emission that the company has not addressed, leaving it vulnerable to future increases in carbon prices or stricter credit regulations.

From our latest report on Insetting vs Offsetting: linkedin.com

Originally published on LinkedIn, 14 July 2026.

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