Amazon announced the expansion of its carbon credit service for suppliers, which will now enable companies to invest in carbon credits generated through the production of lower carbon shipping fuels such as renewable diesel, and from the destruction of “superpollutant” gases.
The expanded service forms part of Amazon’s Sustainability Exchange, launched in 2024, initially as a platform to offer companies – particularly those in Amazon’s supply chain – with free access to sustainability tools and resources used by Amazon to decarbonize its operations, to help them to address their own climate footprints.
Last year, Amazon expanded the exchange with the launch of a carbon credit service, designed to enable companies to start investing and securing high-quality carbon credits, and to help them address issues that added complexity to the market, such as a lack of transparency and quality. The carbon credit investments initially offered through the exchange were generated through projects addressing deforestation, restoring forests, and advancing technological carbon removal.
With the expansion of the service, Amazon will now provide qualified suppliers and customers, as well as Climate Pledge signatory companies, with lower-carbon fuel (LCF) inset credits and superpollutant neutralization credits.
LCF inset credits allow companies to support the production of lower-carbon fuels such as renewable diesel and biodiesel, even if they lack physical access to the fuels, with the buyer getting credit for reducing carbon emissions by an amount equivalent to the inset credits they bought. Superpollutant credits fund the safe destruction of gases such as methane and refrigerants that would otherwise wind up in the atmosphere, where they could trap hundreds or even thousands of times more heat than carbon dioxide.
Amazon’s LCF credit service currently allows companies to buy high-quality credits for renewable diesel and biodiesel made from waste-based feedstocks, with the company planning to add lower-carbon maritime fuel credits to the offering in the future.
In a post announcing the expanded carbon credit service, Michelle Jolly, Director, Sustainability Solutions and Services at Amazon, said:
“Amazon’s carbon credit service is helping companies participate in the voluntary carbon market with confidence. Developing a company’s carbon credit strategy—whether focused on neutralization credits, inset credits, or both—is a muscle. And the sooner a company starts, the stronger it will be as it ramps up investment over time to successfully hit its net-zero carbon emissions goals.”
