This study examines the rapidly evolving landscape of voluntary insetting schemes, with a focus on their application in the maritime sector. Its aim is to synthesise existing literature to provide actionable recommendations that address the key risks and challenges identified. The analysis takes a broad view of insetting schemes rather than evaluating specific maritime programs in detail.
Insetting can support both energy efficiency improvements and the energy/fuel technology transition in shipping; this study focuses on the latter. In this report, insetting is defined as investments directed towards emission-reduction activities within an organisation’s own value chain. This is illustrated on the right in the image below, in contrast to offsetting shown on the left.
At its best, insetting can provide an early pathway to fully decarbonising shipping, by enabling early adopters to pay price premia that align operations with least-cost uses of emerging fuels and technologies. Especially before regulation takes full effect, insetting offers companies a chance to explore, learn, and position themselves strategically for a regulated future. However, insetting also carries risks of unintended consequences — including reinforcing counterproductive norms — that can undermine its value. To maximise its potential, schemes must be grounded in the latest science, governed effectively by credible third parties, and designed to promote long-term decarbonisation without harming the most climate-vulnerable regions.
The window of opportunity for maritime insetting schemes to demonstrate their catalytic impact is narrow but significant. Ultimately, their success will not be measured by the emission credits they generate, but by their ability to accelerate the maritime industry’s transition to a zero-emissions future.
Link to the report: UCL & UMAS 2025 Role of insetting in supporting shipping’s energy transition.