Amazon, Microsoft, and Exxon want to make scandal-plagued carbon markets more trustworthy

Amazon, Exxon, and Microsoft have joined a new task force to burnish the image of scandal-plagued voluntary carbon markets.

The task force, organized by the Bipartisan Policy Center think tank, is hoping to improve credibility of voluntary carbon markets, studying the status quo and drafting “policy recommendations for how the federal government can promote fair, efficient, and transparent markets,” according to the task force’s website.

The panel, which includes 17 independent members, was announced last week. It arrives as tech companies have ramped up their investments in AI, which have given their stocks a hefty boost. But they’ve also strained their ability to hit their climate pledges.

Microsoft’s carbon emissions skyrocketed in 2023, up nearly 30% from the year before despite having nearly 20 gigawatts of renewable power under contract. And Amazon’s progress has stalled, down only slightly in the same time period even though it has invested heavily in renewable energy and electric delivery vehicles.

In a bid to keep their net-zero targets within reach, both companies have become major players in the voluntary carbon markets. Microsoft bought over 7 million metric tons of carbon credits last month alone, while last year Amazon and other companies bought $180 million worth of offsets to conserve a swath of rainforest in Brazil.

But in recent years, those markets have been rocked by scandal.  

An investigation in 2023 revealed that Verra, a nonprofit that certified carbon credits, had sold tens of millions of offsets that were effectively worthless. Verra sold credits that purported to reduce deforestation in places like Peru. Analysis showed those areas hadn’t been at significant risk of logging or clearing. The investigation suggested that more than 90% of rainforest-related credits had almost no effect on reducing carbon emissions.

Verra disputed the report. Six months later, the long-time CEO of the organization resigned.

The task force, which was formed last week, also includes representatives from startups like Heirloom, Isometric, and BeZero. Nonprofits are also part of the task force, as is the former Verra CEO and an executive from timber giant Weyerhaeuser.