Amazon Launches Carbon Credit Sales Program for Companies Committed to Sustainability

Amazon has taken a significant step in its sustainability strategy with the launch of a new program that allows companies to purchase "high integrity" carbon credits. Announced on March 19, this initiative is exclusively aimed at organizations that have signed the Climate Pledge or committed to reducing their greenhouse gas emissions in Scope 1, 2, and 3.

Amazon Launches Carbon Credit Sales Program for Companies Committed to Sustainability

Commitment to Emission Reductions

Opportunities to purchase carbon credits generated by carbon removal projects already supported by the e-commerce giant aim to strengthen companies' goals on their journey towards carbon neutrality. Among the first signatories of the program are the photo service Flickr, real estate firms Ryan Companies and Seneca Group, electronics manufacturer Corsair, and tech consultancy Slalom.

Ben MacAskill, COO and President of Flickr, praised the initiative: “At Flickr and SmugMug, we have invested in nature-based solutions for impacts beyond carbon, but they often lack credibility. Amazon's expertise and scientific rigor mean that our team can confidently meet our climate goals.”

Methodology and Assessment

Amazon is continuously investing in CO2 capture technologies, applying its own methodology called Abacus to evaluate carbon sequestration projects. This approach considers factors such as project durability and leakage risk—when a restoration effort causes deforestation elsewhere. “We are leveraging our size and high verification standards to help promote additional investments in nature,” stated Kara Hurst, Amazon’s Director of Sustainability.

Numbers and Impacts

While Amazon does not disclose how many carbon credits it purchases or retires annually, the new offering seeks to support its decarbonization efforts, as over 75% of its emissions come from Scope 3, which includes indirect supply chain impacts. The company, which managed to reduce its emissions by 3% in 2023, has seen a 34.5% increase since its baseline year of 2019.

Prospects and Future

In addition to carbon removal projects, Amazon is investing in one of the largest direct air capture facilities in the world, currently under construction in Texas, which will have the capacity to capture up to 500 million metric tons of CO2 annually. The company has committed to purchasing 250,000 metric tons of that capacity, further reinforcing its dedication to combating climate change.

Mark Kenber, Executive Director of the Voluntary Carbon Markets Initiative, commented on the new offering: “Amazon’s new carbon credit service is a welcome development in the expansion of the voluntary carbon market.”

Conclusion

The creation of the carbon credit program by Amazon not only solidifies its position as a leader in sustainability initiatives but also offers a significant opportunity for companies looking to contribute to global emission reductions. The success of this initiative will depend on the engagement of the business community and the willingness to work together for a greener future. At EnergyChannel, we will continue to monitor this development and its implications for sustainability and the carbon market.

Amazon Launches Carbon Credit Sales Program for Companies Committed to Sustainability