Carbon insetting
Carbon insetting refers to emission reductions and carbon removals generated by interventions within a company's own value chain, such as agroforestry, soil management or avoided deforestation with supplying farmers, and accounted for in its value-chain (Scope 3) inventory rather than through purchased external offsets.
Also known as: insetting · value-chain interventions · in-value-chain mitigation
Why does it matter?
For agri-food companies, Scope 3 emissions from farms and land use are often the largest part of their footprint. Insetting targets these emissions at the source and can deliver co-benefits for farmers, such as diversified income, better soils and resilience. Agroforestry in cocoa and coffee is a common example.
How does it work?
- Identify interventions with supplying farmers: tree planting, shade management, soil practices, reduced fertiliser, avoided conversion.
- Establish baselines at plot level.
- Implement with farmers, with clear agreements on participation, tree tenure and benefits.
- Monitor through MRV: area, practices, tree survival and growth.
- Account for results in the Scope 3 inventory following GHG Protocol guidance, or register credits under a carbon standard where appropriate.
Common pitfalls
- Claiming removals from farms that are not in the company’s traceable supply base.
- Several buyers of the same cooperative claiming the same trees.
- Ignoring reversals when trees are cut or die.
- Farmers bearing costs without a fair share of benefits.
Farmer1st links interventions to specific farmers and plots so claims can be traced and not double counted, through its carbon service.
Frequently asked questions
How is insetting different from offsetting?
Offsetting uses credits from projects outside the company's value chain to compensate emissions. Insetting reduces or removes emissions inside the value chain and is reflected in the Scope 3 inventory. The rules for each differ.
What makes insetting claims credible?
Traceability from the intervention to the company's supply chain, robust MRV, attention to permanence and reversal risks, avoidance of double counting, and fair benefit-sharing with farmers.
Tell us about your supply chain.
Ten minutes with our scoping assistant. We come back with a first sketch of your service.
