The price at which insetting beats offsetting

At what carbon credit price does it become cheaper for a company to reduce its own emissions (insetting) than to buy offsets from someone else? That tipping point is simply the cost of making those emissions reductions inside the company or its supply chain.

Current forecasts show that high-quality carbon credit prices are rising. In all four cases studied, the price at which insetting becomes cheaper is already at or below where credit prices are expected to go, and well below the carbon prices governments are introducing.

This creates a double push toward insetting: carbon credits are getting more expensive to buy, and governments are starting to put a real price on carbon. What looks like a close call at today’s low credit prices becomes the clear winner when you look ahead.

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