Amazon Creates a New Carbon Offset Standard, Raising Concerns About Market Uncertainty

By Consultants Review Team Tuesday, 02 July 2024

Amazon is defying the accepted method of verifying carbon offsets, which might lead to distinct markets with increased quality risk.

In addition, the business introduced Abacus, a standard it established in collaboration with Verra, a carbon registry, to circumvent using a system designed by the Integrity Council for the Voluntary Carbon Market (ICVCM).

It's interesting to note that ICVCM is supported by Jeff Bezos, the creator and executive chair of Amazon, via his Earth Fund. As to Amazon, Abacus is a higher benchmark that ensures that the carbon offset initiatives get the desired and validated outcome.

The corporation therefore intends to employ these offsets to provide net-zero emissions by 2040.

However, other analysts, including Pedro Martins Barata, the co-chair of the ICVCM expert committee, think that this move might potentially confuse the market, leading different corporations to create their own standards.

Barata intends to equalize the formats they both employ by integrating Abacus into the system that ICVCM utilizes.

As a result, the market for primary voluntary carbon offsets is still not very large overall, and some of the projects' claims to lower emissions are questionable.

Amazon intends to proceed in light of the fact that, despite the fact that some experts have praised Abacus's initiatives for increasing transparency, others have questioned the company's pledge of permanency.

The environmental lobby expressed its worries as well. According to Gilles Dufrasne of Carbon Market Watch, companies may see buying offsets as a way to sidestep real measures to reduce emissions.

Verra is upbeat about the label's impending release, which is likely a few weeks away. In spite of this, some see Abacus as a benefit that will spur market expansion.

Eron Bloomgarden, the creator of Emergent, a non-profit organization that provides funds for forest conservation, believes that significant issues exist that, in addition to Abacus and other created technologies, cannot be resolved without worldwide acknowledgment.

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