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The three decarbonisation tactics:
Reduce, inset & offset

Carbon Markets 101


Level: Intermediate

8 minute read

What's in the guidebook

How do companies achieve net-zero? There are three core tactics in the decarbonisation toolkit: reducing emissions, carbon insetting and carbon offsetting.

These often misunderstood terms can create confusion for businesses and investors who are new to carbon markets. In a nascent market, new terms are often misrepresented across online sources. This is particularly the case with carbon insetting. To reach a clear position, the Kakariki team have researched widely across credible sources, publications and via peer consultation.

Reducing emissions is changing practices within direct business activities to avoid CO2. Or procuring  lower CO2 energy and inputs.

Carbon insetting is removing CO2 within land or infrastructure controlled by the company. Or, working with supply chain partners to help them to avoid or remove CO2. This may involve a carbon credit.

Carbon offsetting is investing in high integrity projects that remove or avoid CO2, from beyond a company's value chain. This must involve a carbon credit.

This guidebook will help you to understand these critical terms, see examples of their practical application, and be able to define the specific scope and role of each tactic. With helpful diagrams to visualise the specific scope and role of each tactic. The guide includes a single page summary that can be kept as a 1 page "cheat sheet" for future reference. 

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  • Reduce, Inset and Offset: The Three Decarbonisation Tactics

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