Amazon, Exxon and Microsoft have joined a new task force to hone the image of a scandal-plagued voluntary carbon market.
A task force hosted by a bipartisan policy center think tank will improve the reliability of voluntary carbon markets, study the current situation and explain how the federal government can promote fair, efficient and transparent markets. I hope to draft a policy recommendation on whether it can be possible. Task Force website.
A panel containing 17 independent members was announced last week. It arrives as high-tech companies have stepped up their investment in AI. But they also strained their ability to take the climate pledge.
Microsoft's carbon emissions skyrocketed in 2023, rising nearly 30% from the previous year despite having 20 gigawatts of renewable electricity under the contract. Amazon's progress has also dropped slightly over the same period, despite its large investments in renewable energy and electricity delivery vehicles.
To keep the net zero target within reach, both companies have become major players in the voluntary carbon market. Microsoft purchased more than 7 million tonnes of carbon credit last month alone, but last year, Amazon and other companies purchased an offset worth $180 million to save on Brazil's rainforest.
However, in recent years these markets have been shaking by scandals.
A 2023 survey revealed that Verra, a nonprofit that certified carbon credits, sold tens of millions of offsets that are virtually unworthy. Verra sold credits that claimed to reduce deforestation in places like Peru. Analysis showed that these areas had no significant risk of logging or clearing. The survey suggests that over 90% of rainforest-related credits had little effect on reducing carbon emissions.
Vera disputed the report. Six months later, the organization's longtime CEO resigned.
The task force, which was established last week, also includes representatives from startups such as Heirloom, Isometric and Bezero. The nonprofit is also part of the task force, as are former Verra CEO and executives of Timber Giant Weyerhaeuser.
