Amazon’s Push for Net Zero: A Deep Dive into Carbon Credits
Businesses around the globe are racing to meet ambitious emissions reduction targets, and many are leaning on carbon credits as a tool to achieve their goals. However, Amazon’s strategy goes beyond simply buying credits.
Amazon uses carbon credits against the carbon footprint of its buildings.
Amazon emphasizes that its carbon removal methods are initiatives that generate high-quality carbon credits. Instead of relying solely on offsets, the company is actively involved in projects that remove carbon dioxide from the atmosphere and promote sustainability efforts. The company is dedicated to using carbon credits in specific areas where it has already made significant progress in decarbonization, to guarantee real changes within the business. The e-commerce giant focuses its efforts on three critical areas: reducing tropical forest loss, restoring degraded land, and advancing technological carbon removal. This approach aims not only to address the environmental impact but also to foster a more sustainable business model. Amazon employs a ‘first principles approach’ where it identifies rigorous methodologies instead of defaulting to current standards.
Amazon and the Fight Against Deforestation
Deforestation and land-use changes have a major impact globally, accounting for roughly one-fifth of the planet’s yearly carbon emissions. To combat this, Amazon co-founded the LEAF Coalition, a collaborative effort between public and private sectors that has mobilized more than US$1 billion to protect tropical forests and support local communities. Through initiatives like the Agroforestry and Restoration Accelerator, Amazon is also engaged in establishing a pipeline of nature-based restoration projects. These projects explore business models, strategies for engaging landowners, and measurement techniques to support native restoration and agroforestry on small-scale farms.
Kara Hurst, Chief Sustainability Officer at Amazon, notes: “Many of these projects will help local communities generate new sources of income, all while improving natural habitats and promoting biodiversity.”
Technological Innovation in Carbon Removal
Amazon’s approach to sustainability is deeply rooted in innovation and technology. It’s investing in climate technologies through its Climate Pledge Fund, including Direct Air Capture (DAC) systems. In 2023, Amazon made its first investments in DAC, recognizing its potential to effectively remove carbon dioxide from the atmosphere and store it. These investments include funding CarbonCapture Inc., a company known for its innovative modular DAC systems.
