Amazon, Microsoft, and ExxonMobil have joined forces to address the ongoing concerns surrounding voluntary carbon markets. Through a task force convened by the Bipartisan Policy Center, these companies aim to bolster market credibility. The task force consists of seventeen independent members and will focus on assessing the current state of carbon markets and developing policy recommendations to improve fairness, efficiency, and transparency.
The initiative comes amidst increased investment by tech companies in artificial intelligence, which has fueled their stock valuations but hindered their progress towards climate commitments. Both Microsoft and Amazon have faced challenges in meeting their net-zero emissions targets. While Microsoft’s carbon emissions surged by 30% in 2023 despite extensive renewable energy investments, Amazon’s progress has also been limited.
To compensate for these shortfalls, Microsoft and Amazon have relied heavily on voluntary carbon markets. Microsoft recently purchased over 7 million metric tons of carbon credits, while Amazon and other companies invested $180 million in offsetting projects such as rainforest conservation in Brazil. However, these markets have been marred by recent scandals.
In 2023, an investigation revealed that Verra, a leading carbon credit certification entity, had sold millions of credits that proved ineffective in reducing emissions. The scandal raised concerns about the integrity of carbon markets and prompted the resignation of Verra’s CEO.
The newly formed task force includes representatives from carbon credit startups, nonprofits, the former Verra CEO, and timber industry executives. The group aims to address the issues plaguing carbon offsetting and work towards establishing a more trustworthy market system.
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