Forests & Tech: Inside Amazon’s Carbon Credits Strategy

Business emissions reduction deadlines are getting closer, and many companies are turning to carbon credits as a solution. 

However, not everyone trusts carbon credits.

Low quality carbon removals can exaggerate or overestimate their impact, and some argue they allow big polluters an “easy out” without actually reducing operational emissions. 

Giant companies around the world are investing in these solutions anyway, including Google, Microsoft and Amazon. 

Amazon says that its carbon removal methods are “high-impact, innovative initiatives that generate high-quality carbon credits”. 

Amazon’s approach to carbon credits

The e-commerce giant is focussed on three priority areas – reducing tropical forest loss, restoring degraded land and advancing technological carbon removal. 

Amazon says “as other actors begin to take responsibility for their own emissions on the road to global net zero, the availability of truly additional carbon reductions will diminish and supply of high-quality carbon credits will transition to primarily carbon removals.”

The credits it uses help to unlock private sector climate finance at scale and channel funding to projects that may otherwise remain underfunded. 

Amazon is also careful to avoid its carbon credits being “double claimed”, where the same carbon removal outcome is claimed by more than one entity despite providing the same amount of impact. 

The company says it employs a “first principles approach” where it identifies rigorous methodologies instead of defaulting to current standards. 

It also works with third party experts to monitor, measure and ensure the validity of its credits.

Where does Amazon use carbon credits against its carbon footprint?

Amazon is already using carbon credits against its carbon footprint in a few cases. 

Its buildings have achieved the International Living Future Institute’s third party verified Zero Carbon Certification through the use of carbon credits. 

It aims to use carbon credits in areas of its carbon footprint where it has already made decarbonisation progress. 

This is instead of using carbon credits in place of decarbonisation as a whole. 

Amazon says that its priority “is to reduce carbon emissions across our operations by implementing real business changes”.

Amazon’s impact on forests and land use

Globally, deforestation and other land use change account for as much as one-fifth of the world’s annual carbon emissions.

To support forests, Amazon co-founded the LEAF Coalition, a public-private initiative mobilising more than US$1bn to protect tropical forests and support local communities.

It is also helping to build a pipeline of nature-based restoration projects through initiatives like the Agroforestry and Restoration Accelerator.

This initiative looks to experiment with business models, landholder engagement strategies and measurement techniques to support native restoration and agroforestry on small-scale farms. 

“Many of these projects will also help local communities generate new sources of income, all while improving natural habitats and promoting biodiversity,” says Kara Hurst, Chief Sustainability Officer at Amazon.

Carbon removals through innovative technologies

Amazon says its approach to sustainability is deeply rooted in innovation and technology. 

The company is investing in emerging climate technologies through its Climate Pledge Fund, including Direct Air Capture (DAC) systems. 

In 2023, Amazon made its first investments in DAC, recognising its potential to effectively remove carbon dioxide from the atmosphere and store it permanently.

This included a Climate Pledge Fund investment in CarbonCapture Inc., a company recognised for its modular DAC systems.

Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE. 

Discover all our upcoming events and secure your tickets today.

Sustainability Magazine is a BizClik brand