Amazon, Microsoft, and Exxon have formed a new task force aimed at enhancing the credibility of voluntary carbon markets, which have faced significant scrutiny in recent years. Organized by the Bipartisan Policy Center, this initiative seeks to evaluate the current state of these markets and develop policy recommendations to foster fair, efficient, and transparent practices.
The task force includes 17 independent members and was announced last week. It comes at a time when major tech companies are increasing their investments in artificial intelligence, which has positively impacted their stock prices but strained their climate commitments. For instance, Microsoft reported a nearly 30% increase in carbon emissions in 2023, despite having substantial renewable energy contracts. Similarly, Amazon’s progress in reducing emissions has stagnated, even with considerable investments in renewable energy and electric vehicles.
In an effort to meet their net zero targets, both companies have become significant players in the voluntary carbon markets. Microsoft acquired over 7 million metric tons of carbon credits last month, while Amazon and others invested $180 million in carbon offsets to protect a rainforest area in Brazil last year.
However, these markets have been marred by controversy. A 2023 investigation revealed that Verra, a nonprofit responsible for certifying carbon credits, sold millions of offsets that were essentially worthless. The analysis indicated that over 90% of rainforest-related credits had little to no impact on carbon emissions reduction. Following the investigation, Verra’s longtime CEO resigned.
The newly formed task force also includes representatives from various startups and nonprofits, as well as the former Verra CEO and an executive from Weyerhaeuser, a major timber company. This collaborative effort aims to restore trust in carbon markets and ensure they fulfill their intended purpose of combating climate change.
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