Insetting – Developing a Custom-made Emission Reduction Project

Insetting creates a sustainable funding mechanism for climate change adaptation by using the trading mechanism of the global carbon markets. Insetting is fast becoming a popular innovative carbon offset initiative. It combines the advantages of classic offsetting with a different set of advantages of running a project; it also provides good solutions for holistic corporate branding and communication goals, and enables the generation of positive climate and social impacts within the supply chain of an organization.

Insetting is advantageous because it relates directly to a corporation and is part of corporate operations. It provides an opportunity for additional income through carbon finance for stakeholders in the supply chain and induces social and environmental co-benefits. Insetting also provides for third party verification, thus aligning corporate practice with the rules of the best internationally recognized carbon standards.

Example project: One example project with associated co-benefits is the Gold Standard VER clean cooking dissemination project in Kenya.  Financing for the project comes from three sources: the supermarket COOP, Switzerland, and the WWF (for voluntary carbon offsetting purposes). The local implementation of the project is handled jointly by Oserian Development Ltd. (which has strong ties to local Maasai communities), a FairTradeTM certified flower farm that is present in the project area, and WWF Kenya.

Insetting aspects:

Corporate engagement focuses on:

  • Subsidizing the distribution of highly efficient cookstoves to the local Maasai communities;
  • Enabling the recognition of this activity as a high-quality-Gold-Standard emission reduction project;
  • Retiring the resulting carbon credits to become carbon neutral.

The project benefits the local communities by:

  • Increasing household revenue via the creation of a domestic, cash-generating livelihood activity;
  • Reducing medical expenditures (e.g. expenditures  on respiratory health diseases);
  • Raising the level of school attendance and academic performance of local children.

For deeper reading, see Adapt Together.