Carbon insetting vs offsetting: Grain market daily

• UK feed wheat futures (Nov-23) closed at £192.20/t yesterday, up £5.70/t from Friday’s close. UK prices followed Paris and US markets up, with renewed concerns over the future of the Ukraine export corridor, cuts to 2023/24 Australian crop prospects and heavy rains in China.
• With the El Nino weather event expected to bring dryness to Australia in 2023/24, estimated wheat production has been cut by 34% to 26.2 Mt for the season, which is below the previous 10-year average (Department of Agriculture, Fisheries and Forestry).
• After trading closed yesterday, the USDA released its latest crop condition report, with 64% of the US maize crop in good/excellent condition as at 4 June, dropping five percentage points on the week.
• Yesterday, the European Commission extended its restrictions on Ukrainian grain exports to Bulgaria, Hungary, Poland, Romania and Slovakia until 15 September.
• Nov-23 Paris rapeseed futures closed at €428.50/t yesterday, up €15.50/t from Fridays close. Rapeseed markets were partly supported by rises in crude oil markets.

Carbon insetting and offsetting are two ways for companies to reduce their carbon emissions and help the UK reach net zero. So how do they differ?

The UK government strategy for reaching net zero by 2050 is ever more at the forefront of discussion within the agricultural industry, particularly with the NFU setting its own targets for achieving net zero by 2040 in England and Wales.

Net zero means not adding to the amount of greenhouse gas (GHGs) emitted into the atmosphere. It involves reducing GHGs as much as possible, then balancing out any remaining emissions by removing an equivalent amount. Not all emissions can be reduced to zero, which is where the opportunity for offsetting comes into play, as an option for compensating for these shortfalls. Many private sector companies are becoming increasingly reliant on voluntary offsetting to achieve this status.

Carbon insetting and offsetting are two important approaches for mitigating the effects of carbon emissions and helping the UK reach net zero.  Both are options for companies to take the reduce their overall carbon emissions.

In latest analysis released yesterday, Charlotte Forkes-Rees discusses the difference between carbon insetting and offsetting, as well as why its important for UK growers.

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