Offsetting and insetting in city net-zero plans

To contribute to Paris Agreement objectives, non-state actors globally are increasingly developing voluntary emission reduction goals. Cities represent an important group with net-zero or similar plans, but significant variation exists in how they intend to meet these targets. A lack of research exists on the role of carbon offsetting (carbon dioxide removal or avoided emissions outside the city’s geographic boundaries) and insetting (carbon dioxide removal within the city’s boundaries) in city net-zero plans. However, better understanding these strategies can help inform future policy on effective climate mitigation by cities. This study uses a mixed-method design to explore how cities use offsetting and insetting. The NetZero Tracker has reviewed 1186 net-zero plans of cities around the world. We use regression analysis to explore what factors (e.g. population size, GDP, ambition of climate commitment) are associated with cities’ choice of emission compensation strategies. Focusing then on only cities that include offsetting or insetting in their climate plan, we conduct a document analysis and code key themes in city plans as they relate to emissions compensation strategies. Preliminary results show that of the 66 cities which plan to use offsetting, most intend to prioritise emissions reductions but recognize that compensation strategies will be needed to offset remaining emissions. The majority intend to acquire offsets at or around their target year to cancel these emissions, indicating a risk of only compensating in the last year. Further, most recognize the need to develop guidelines around the use of offsetting, but few have yet done so. Our study further explores whether and how the ambition level of city climate commitments is correlated with their use of offsetting or insetting. This research provides new insights into offsetting and insetting by cities, which we hope will contribute to future policy development of city net-zero strategies.