Insetting involves reducing greenhouse gas (GHG) emissions within a company’s own value chain. This means focusing on improving the sustainability of internal processes and supply chain activities, particularly Scope 3 emissions (which include purchased goods, services, and investments). For example, insetting could involve working with suppliers to adopt low-emission technologies or improve agricultural practices.

Offsetting, on the other hand, refers to compensating for emissions by investing in external projects that reduce or remove carbon. These could include reforestation or renewable energy projects. While offsetting allows companies to balance their carbon footprint by supporting external efforts, insetting emphasizes reducing emissions within a company’s own operations and supply chain.

Unlike carbon credits, Impact Units specifically track and verify greenhouse gas (GHG) reductions or removals within a company's value chain for accurate Scope 3 emissions reporting. Impact Units are tradable certificates each representing one tonne of carbon dioxide equivalent (CO₂e) that is removed or reduced as a result of a sustainability project. We offer the opportunity for reporting companies to claim these credits in their sustainability report, using them to lower their Scope 3 emissions. 

For most companies, Scope 3 emissions represent more than 75% of their total emissions, meaning that reducing them is fundamental to any Net Zero strategy.

Carbon finance refers to the financial mechanisms and investments that support projects aimed at reducing greenhouse gas emissions. It plays a crucial role in sustainability by providing the funds necessary to develop and implement emissions-reduction technologies, particularly in hard-to-abate sectors. 

Insetting and Impact Units are key components in making carbon finance work. Insetting allows companies to invest directly in sustainability projects within their own supply chains, creating measurable emissions reductions that align with their broader sustainability goals. Impact Units are the verified outcomes of these projects, quantifying the emissions reductions and enabling companies to credibly report on their Scope 3 emissions reductions. Together, they offer a pathway for companies to future-proof their operations and contribute to global decarbonization efforts.

Proba ensures the impact of its projects is real through rigorous measurement, reporting, and verification (MRV) processes, backed by the development of new quantification and verification methodologies. These methodologies are specifically designed to accurately measure and report emissions reductions within the supply chain. By collaborating with the voluntary carbon market and adhering to strict monitoring protocols, Proba ensures that all emissions reductions are thoroughly tracked and verified, guaranteeing transparency and credibility in project outcomes.

Proba uses a blockchain-powered registry to track each Impact Unit, ensuring they are claimed only once. This transparent process eliminates double-counting risks, so emission reductions are credible and trustworthy.

Proba’s Impact Units are aligned with standards like the GHG Protocol and SBTi, ensuring they support global climate efforts. By focusing on verifiable emissions reductions, Proba helps companies meet their sustainability goals transparently and effectively.

How much do Impact Units cost and how much do they sell for?

The market price of Impact Units varies based on the market demand, the specific project from which the Impact Units are generated, and the volume of Impact Units being purchased. Prices are influenced by the complexity, location and impact of the emission reduction projects. If the Impact Units aren't sold directly to your supply chain partners, Proba can connect you with trusted market makers and brokers to ensure you get a fair price for them.

Who is going to buy the Impact Units, and what do they actually mean to these offtakers?

Proba Impact Units are primarily purchased by businesses seeking to meet their sustainability targets, especially those related to Scope 3 emissions. These buyers are active in your supply chain. For these offtakers, purchasing Proba Impact Units means they are directly contributing to tangible, verified emission reductions within their supply chain. This not only helps them meet regulatory requirements and corporate sustainability goals but also positions them as leaders in the global shift towards sustainability.

Can you trust your Impact Units? What about the risks of double-claiming? Is Proba credible?

Trust and credibility are the foundations of Proba's Insetting Service. We ensure the integrity of our Impact Units through rigorous, independent third-party verification processes that confirm the real-world impact of emission reductions. To mitigate the risk of double-claiming, we employ a robust tracking and auditing system that meticulously records the issuance, transfer, and retirement of Impact Units on a public blockchain. Proba's credibility is backed by adherence to international ISO standards and our commitment to transparency, including an independent advisory board, which governs our Standard. This ensures that stakeholders can confidently participate in our program.

Where do I start? What do I need? What needs to be done? Who is involved?

Step 1: Describe your GHG reduction initiatives
Provide details about your GHG reduction, removal, or avoidance initiatives, including their expected GHG impact. We'll assist in registering your project on our platform and the quantification of the impact based on our methodologies.

Step 2: Ensure transparency and credibility with Proba's verification process
Let’s make sure your product’s or project’s climate impact gets validated by accredited 3rd party verifiers. .

Step 3: Convert your climate impact into valuable Impact Units
Once verified, we convert the verified CO₂e reductions or removals into distinct entitlements on a blockchain ledger, turning your efforts into a valuable asset, opening a new revenue stream and decarbonizing your supply chain.

Step 4: Monetize your carbon credits
The sale and transfer of your carbon credits helps reduce the buyer's footprint. Each Impact Unit's uniqueness ensures exclusive recognition of your efforts and helps to co-finance your more sustainable product or practice.