Amazon Launches Carbon Credit Service for Net-Zero Firms

Amazon has opened a new carbon credit service for companies dedicated to reaching net-zero emissions to help them access science-based, high-quality carbon offsets. The expansion of Amazon's Sustainability Exchange, the new carbon credit service will be available for suppliers, business customers, and Climate Pledge signatories in search of trusted means to add to their efforts at decarbonization.

Voluntary carbon markets have long struggled with issues around transparency, credibility, and accessing reliable carbon credits. By tapping into its enormous reach and strict vetting criteria, Amazon aims to encourage more investments in nature-based initiatives and tech solutions that enable global decarbonization. Kara Hurst, Amazon's Chief Sustainability Officer, underscored the company's dedication to ensuring these credits are of the highest quality. We are leveraging our scale and rigorous vetting standards to facilitate further investments in nature, and we look forward to sharing this new opportunity with companies that share our commitment to the hard work of decarbonizing their businesses," she said.

The move is Amazon's larger ambition to go to net-zero carbon in 2040. Given the climate imperative, the company highlights the need for increased scaling of carbon removal technology, preservation of forests, and restoring degraded lands. It is estimated that nearly one trillion tons of atmospheric carbon needs to be removed between 2100 in order to stave off the worst impacts of climate change by the Intergovernmental Panel on Climate Change (IPCC). Dr. M. Sanjayan, CEO of Conservation International, emphasized the importance of large private-sector actors in this endeavor. "Deforestation accounts for 30% of global emissions—if we don't stop and reverse it, we won't get a grip on climate change," he said, adding that Amazon's leadership in this area shows that saving nature is not only an environmental imperative but an economic one.

Firms hoping to engage in Amazon's carbon credit service are required to adhere to stringent eligibility requirements. They need to make public net-zero emissions commitments and report on all three scopes of emissions—Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity), and Scope 3 (all other indirect emissions, including supply chain effects). They must also have science-based decarbonization plans in place and disclose their greenhouse gas emissions on a regular basis.

Amazon's carbon credit service has been warmly received by companies already engaged in carbon offsetting. Kristine Rohls, Slalom's Chief People Officer, was enthusiastic about the program, saying that procuring high-quality credits is key and that working with a known partner such as Amazon adds credibility to their efforts in the voluntary carbon market.

Already on board for the program are some well-established firms like Flickr, Seneca Group, Ryan Companies, Corsair, Steelcase, and Slalom. Flickr Chief Operating Officer and President Ben MacAskill underlined how Amazon's participation lends credibility to often opaque nature-based solutions. "At Flickr and SmugMug, we invest in a series of nature-based solutions for impact wider than carbon, but they do not have credibility.". Amazon's experience and scientific expertise mean our employees can achieve our climate ambitions with confidence," he said.

The need for corporate climate action is pressing, and environmental leaders have highlighted the importance of Amazon's efforts. Environmental Defense Fund President Fred Krupp underscored the need for aggressive action, arguing that reducing emissions and preserving nature must go together. "Our planet can't wait. The imperative for bold corporate climate action has never been greater. Reducing emissions and safeguarding nature are both essential," he said.

With this latest service, Amazon continues to support science-driven innovations as key resources in the climate change battle. By establishing standards and promoting partnerships between companies, the company plans to speed up worldwide efforts at sustainability and preservation of the environment. As increasing numbers of businesses look for real ways to limit their carbon impact, Amazon's carbon credit service offers a vehicle for effective, reliable climate action.