Amazon will allow companies with comprehensive emissions reduction goals to purchase “high integrity” carbon credits from carbon removal projects that the $638 billion e-commerce and cloud services giant has already supported.
The initiative, announced on March 19, is available exclusively to companies committed to reducing greenhouse gas emissions across all three categories: Scope 1 (direct emissions from their operations), Scope 2 (emissions from purchased electricity), and Scope 3 (indirect emissions across their supply chain).
Additionally, it is open to the 550 signatories of the Climate Pledge, a coalition of companies striving for net-zero emissions by 2040.
Among the early adopters of this program are photo service Flickr, real estate firms Ryan Companies and Seneca Group, consumer electronics manufacturer Corsair, office furniture supplier Steelcase, and technology consulting firm Slalom. Companies interested in participating can apply by filling out this form.
“At Flickr and SmugMug, we invest in a number of nature-based solutions for impact beyond just carbon, but they often lack credibility,” said Flickr COO and President Ben MacAskill in a statement. “Amazon’s expertise and scientific rigor means our team can meet our climate goals with confidence.”
Amazon’s In-House Carbon Project Review Process
Amazon is making substantial investments in nature-based solutions to remove excess CO2 from the atmosphere and has developed its own evaluation methodology, known as Abacus. This framework assesses factors such as durability (how long trees are likely to survive) and leakage (whether a forest restoration project inadvertently leads to deforestation elsewhere).
“We’re using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations,” said Amazon Chief Sustainability Officer Kara Hurst in the March 19 announcement.
Amazon Company
While Amazon does not disclose the number of carbon credits it purchases or retires annually to offset its emissions, nor the total credits available through this new service, a company spokesperson confirmed that the first credits will come from Amazon’s partnership with the LEAF Coalition, which has committed $1 billion to development projects in countries such as Brazil.
In 2023, Amazon reduced its emissions by 3 percent compared to the previous year, largely due to its significant investments in renewable energy. However, its overall carbon footprint has grown by 34.5 percent since its 2019 baseline.
More than 75 percent of Amazon’s emissions stem from Scope 3 sources. The company has prioritized working with high-emitting suppliers that account for roughly half of those emissions, urging them to implement reductions.
While this new carbon credit service will support those efforts, Amazon encourages its partners to prioritize direct decarbonization measures. The company will not profit from this program, according to the spokesperson.
Beyond nature-based projects, Amazon has also invested in one of the world’s largest direct air capture facilities. The facility, developed by 1PointFive and currently under construction in Texas, is expected to capture up to 500 million metric tons of CO2 per year once completed. Amazon has committed to purchasing 250,000 metric tons of that capacity.
Amazon’s criteria for defining “high integrity” carbon credits are somewhat less stringent than those established by the Voluntary Carbon Markets Initiative, which provides guidance on how companies should use voluntary carbon markets for net-zero commitments. Still, the move represents progress, according to Mark Kenber, executive director of the nonprofit.
“Amazon’s new carbon credit service is a welcome development in scaling the voluntary carbon market,” Kenber said.
