Amazon announces the development of Abacus as a new internal standard for carbon offsets, aiming to enhance transparency and effectiveness in achieving net-zero carbon emissions by 2040. The move follows the company’s withdrawal from existing carbon offset standards funded by Jeff Bezos.
Amazon Develops New Standard for Carbon Offsets
Amazon has decided to withdraw from the carbon offset standards funded by its founder, Jeff Bezos, in favor of creating its own standards. The online retail giant will develop a new verification standard, focusing on reforestation and agroforestry, to achieve its net-zero carbon emissions goal by 2040.
Carbon offsets, essential tools in the energy transition, allow companies to emit CO2 while supporting projects that absorb carbon dioxide. Initially, the Science Based Targets initiative (SBTi), funded by the Bezos Earth Fund, aimed to design these standards. However, internal conflicts within SBTi led Amazon to pursue a different approach.
Amazon’s new initiative, called Abacus, will serve as an alternative to the standards set by the Integrity Council for the Voluntary Carbon Market (ICVCM), another organization funded by Bezos. Abacus aims to provide transparent and rigorously monitored carbon credits.
James Mulligan, Amazon’s head of carbon neutralization, emphasized the company’s commitment to ensuring that each credit investment significantly impacts emissions. This move comes amidst criticism of potential market confusion and concerns about maintaining high standards for carbon offsets.
Major tech companies like Alphabet, Meta, Microsoft, and Salesforce have already committed to purchasing up to 20 million tons of Abacus-certified credits. The new label is expected to be available within weeks, while the voluntary carbon offset market grapples with challenges regarding project effectiveness and market integrity.
Amazon, having emitted 71.3 million tons of CO2-equivalent in 2022, continues its efforts to decarbonize operations as it positions Abacus to enhance the credibility of carbon offsets in the market.
