By Virginia Furness
LONDON (Reuters) – Amazon has begun selling carbon credits to its suppliers, business customers and other companies, the U.S. retail giant said, which can be used to offset their climate-damaging carbon emissions.
The launch comes amid a major debate between companies, project developers and scientists about the extent to which carbon credits should be used to help companies reduce their emissions, as well as how to ensure the credits’ quality.
The retailer said it used industry-leading standards where possible for its credits, and supported the development of rigorous standards where existing checks were inadequate.
The move marks Amazon’s first foray into selling credits, though it has been involved in industry efforts to set quality standards and directly invests in projects including those to protect forests, restore degraded land and advance carbon removal.
Its chief sustainability officer, Kara Hurst, said the firm will use its “size and high vetting standards to help promote additional investments in nature”.
Several companies including Flickr, real estate advisory group Seneca and consumer electronics company Corsair are already participating in the scheme, it said in a statement late on Wednesday.
On Tuesday, an influential initiative helping companies set decarbonisation targets, the Science-Based Targets initiative, said carbon credits could be used by companies but should be limited to residual emissions – the small slice left after the company has made best efforts to cut them.
However, it stopped short of endorsing their more widespread use in meeting decarbonisation targets.
The Bezos Earth Fund, set up by Amazon founder Jeff Bezos, was a major supporter of SBTi until November 2023, when its $18 million grant to the group was not renewed.
Amazon said its credits will be available to companies that meet conditions including having a net-zero target covering their own emissions as well as those across their supply chain, and that measure and publicly report their greenhouse gas emissions.
(Reporting by Virginia Furness)
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