Microsoft, Amazon, and Exxon have formed a new task force to improve the voluntary carbon markets’ reputation after scandals.
According to the task force’s website, the Bipartisan Policy Center think tank organized the task force, which aims to increase the legitimacy of voluntary carbon markets by examining the current situation and developing “policy recommendations for how the federal government can promote fair, efficient, and transparent markets.”
Last week, the panel—which consists of 17 independent members—was revealed. It comes as tech firms have increased their AI investments, which has significantly increased their stock prices. However, they have also made it more difficult for them to fulfill their climate commitments.
Despite having contracts for about 20 gigawatts of renewable energy, Microsoft’s carbon emissions in 2023 increased by almost 30%. And despite making significant investments in electric delivery trucks and renewable energy, Amazon’s growth has stagnated, declining only a little over the same time frame.
Both businesses have grown to be significant participants in the voluntary carbon markets in an effort to meet their net-zero goals. Last month alone, Microsoft purchased more than 7 million metric tons of carbon credits, and last year, Amazon and other corporations purchased $180 million worth of offsets to protect a large area of Brazilian rainforest.
However, scandals have rocked such markets in recent years.
Verra, a nonprofit that certified carbon credits was found to have sold tens of millions of offsets that were essentially worthless in 2023. Verra offered credits for sale that claimed to lessen deforestation in countries such as Peru. According to the analysis, there had not been a substantial risk of logging or clearing in those areas. According to the study, over 90% of credits relating to rainforests had virtually no impact on lowering carbon emissions.
The report was denied by Verra. The organization’s longtime CEO quit six months later.
Last week, members from startups such as Heirloom, Isometric, and BeZero joined the task team.
