Latest News

Amazon will sell carbon credits to customers and suppliers

Amazon will sell carbon credits to customers and suppliers

Amazon, the U.S. retailer, has announced that it will begin selling carbon credits, which are used to offset climate-damaging emissions, to its business customers, suppliers and other companies.

The launch coincides with a heated debate among companies, scientists and project developers about how carbon credits can be used by companies to reduce their emissions.

The retailer stated that it uses industry-leading standards for its credit checks and supports the development of rigorous standards when existing checks are inadequate.

Amazon is the first company to sell credits. However, it has participated in efforts to establish industry standards, and invested directly in projects such as those that protect forests, restore land, and remove carbon.

Kara Hurst said that the company will leverage its "size" and "high vetting standards" to promote more investments in nature.

In a late-night statement, the company said that several companies, including Flickr, Seneca, a real estate advisory firm, and Corsair, a consumer electronics manufacturer, were already involved in the scheme.

The Science-Based Targets Initiative, a powerful initiative that helps companies set decarbonisation goals, stated on Tuesday that companies could use carbon credits, but they should only be used for residual emissions, i.e. the little bit left over after the company's best efforts have been made to reduce them.

It did not endorse their wider use to meet decarbonisation goals.

Bezos Earth Fund was established by Amazon founder Jeff Bezos and was a major donor to SBTi up until November 2023 when it did not renew its grant of $18 million.

Amazon has said that its credits are available to companies who meet certain conditions, including a net-zero emission target for their own emissions and those of their supply chain. They also must measure and report publicly their greenhouse gas emissions. Virginia Furness reported on this story.

(source: Reuters)