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Offsetting sends money sideways. Insetting sends it to the source.

Producers will not build without buyers; buyers will not commit without supply. Financing reductions from the value chain breaks the standoff.

By Carbon3 team1 min read

Two-panel comparison. Offsetting: a separate market, far away, outside the supply chain. Insetting: inside your own supply chain, with verified reductions linked to the suppliers you buy from.

Offsetting sends climate money sideways Insetting sends it to the source

For years those two have been stuck in a chicken-and-egg. The producer won't build a hydrogen plant without committed buyers; the buyer won't commit without supply and a price it can plan around. Nobody moves, because nobody alone will carry a 50-70% premium

Financing Scope 3 reductions from value-chain players breaks that, and it does something offsets never could: it brings the capital to the root cause. A downstream buyer's budget flows upstream, to the exact step where the carbon is made, and pays to take it out there

Money flows to where the molecule is created sustainably, not in a project on the other side of the world. That's the difference between buying down a number and funding the actual transition.

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Originally published on LinkedIn, 5 June 2026.

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