Amazon has launched a new opportunity allowing companies aligned with its Climate Pledge, as well as its value-chain partners, to participate in carbon credit offtake agreements. This move aims to streamline access to a stable supply of high-quality carbon credits, which often requires extensive due diligence beyond the reach of many corporate sustainability teams.
Eligible buyers can now purchase a minimum of 100 carbon credits from existing Amazon contracts, without any imposed minimum contract duration. This relatively low purchase threshold makes it easier for smaller companies to engage in verified carbon offset projects linked to Amazon’s sustainability efforts.
Three specific projects underpin the available offtake agreements. One focuses on ecological restoration in South Africa, involving a 120,000-acre initiative with the World Bank to restore spekboom, a drought-resistant native plant known for its carbon sequestration capabilities. Another project targets rice methane reduction in India, supporting smallholder farmers in adopting new water management techniques that lower emissions. The third involves direct air capture (DAC) technology in Texas, where Amazon has committed to purchasing 250,000 metric tons of carbon removal from 1PointFive’s facility, which is poised to become one of the world’s largest DAC operations.
This initiative not only facilitates greater corporate involvement in carbon offset markets but also supports Amazon’s broader commitment to achieve net zero carbon emissions by 2040. Amazon anticipates that as it approaches this target, the bulk of its remaining emissions will fall under Scope 3—those generated indirectly through its supply chain—making supplier participation critical to overall progress.
However, the specific volume of carbon credits needed to meet these net-zero goals remains undefined. The Climate Pledge does not specify how much of a company’s baseline emissions can be offset with credits, drawing criticism for its leniency compared to standards like the Science Based Targets initiative, which mandates at least a 90 percent reduction in baseline emissions before offsets are used.
The newly expanded offtake program builds on an earlier initiative that allowed Climate Pledge signatories to make one-off purchases of credits from projects Amazon supports. While Amazon has not disclosed sales figures under that program, it acknowledged that growth has been slower than anticipated due to challenges on the supply side of carbon credits.
By opening these agreements to partners with lower minimum purchase requirements and no fixed contract terms, Amazon aims to foster broader engagement in emission reduction efforts and enhance the availability of high-quality credits in the market.