Amazon has taken another major move in addressing climate change by launching a new carbon credit service on its Sustainability Exchange platform. This initiative helps businesses invest in quality carbon credits. It supports nature-based projects and advanced carbon removal technologies.

Amazon aims to enhance transparency, credibility, and corporate participation in voluntary carbon markets by offering access to vetted credits.

Amazon’s Next Big Sustainability Move

Amazon is making big changes to reach net-zero carbon emissions by 2040. It will switch to carbon-free energy, electrify its delivery fleet, and boost energy efficiency in data centers. The retail giant has achieved its 100% renewable energy goal 7 years ahead of schedule. 

• RELATED: Amazon Expands Renewable Energy with 17 New Projects in Spain & First in Portugal

The company knows that cutting emissions is important. However, some emissions are hard to get rid of completely, where carbon credits come in.

Carbon credits provide a mechanism to offset these unavoidable emissions by funding projects that capture or prevent carbon from entering the atmosphere.

Amazon’s Chief Sustainability Officer, Kara Hurst, highlighted the need to tackle deforestation. It makes up 30% of global carbon emissions. She said that businesses can make real progress on their climate goals by investing in nature and technology for carbon removal. Hurst particularly remarked that:

“However, the science is clear: We must halt and reverse deforestation and restore millions of miles of forests to slow the worst effects of climate change. We’re using our size and high vetting standards to help promote additional investments in nature, and we are excited to share this new opportunity with companies who are also committed to the difficult work of decarbonizing their operations.”

How the Carbon Credit Service Works

The new service expands Amazon’s Sustainability Exchange. It gives companies tools to create and carry out sustainability plans. Qualified businesses can buy carbon credits to support their decarbonization efforts.

Key aspects of the service include:

• Science-Based Carbon Credits. Amazon makes sure that all credits on the platform meet strict environmental standards. This way, they provide real climate benefits.
• Support for Nature-Based Solutions. Projects that focus on reforestation, forest conservation, and land restoration. These efforts absorb carbon from the air and boost biodiversity.
• Investment in Carbon Removal Technologies. Amazon supports solutions like direct air capture and biochar. These methods help store carbon for a long time.
• Access for Climate Pledge Signatories. Businesses that have committed to The Climate Pledge can use this service to meet their sustainability targets.

Who Can Take Part in the Initiative?

Amazon set strict rules for companies that want to purchase carbon credits on its platform. Businesses must perform the following actions to be able to participate:

• Set a net-zero target that includes:
  • Scope 1: direct emissions
  • Scope 2: indirect emissions from electricity use
  • Scope 3: emissions from the value chain
• Measure and publicly report their greenhouse gas emissions regularly.
• Put in place decarbonization strategies in line with the latest climate science.

Many companies have already joined the initiative. They include real estate firms like Seneca Group and Ryan Companies, consumer electronics brand Corsair, and the consulting firm Slalom. These businesses view Amazon’s platform as a trusted source of reliable carbon credits that can help them fulfill their climate goals.

Impact on the Voluntary Carbon Market

Amazon’s move into the carbon credit market could bring big changes. The voluntary carbon market, where companies buy credits to balance out their emissions, has faced issues like unclear rules and low-quality projects. Amazon’s involvement could help fix these problems in several ways.

Lately, fewer companies are buying carbon credits. They often doubt the projects are truly benefiting the environment. In 2024, the number of retired carbon credits stayed at about 175 million, the same as the past four years.

Some businesses worry that carbon offsets are not always effective, which has hurt demand (retired credits). By offering only high-quality credits with strict verification, the retailer is working to rebuild trust in the market.

Amazon’s entry into this space could also increase demand for carbon credits. When a major company like Amazon supports carbon credits, other businesses may feel more confident about using them. In 2024, investments in carbon projects hit $16.3 billion. This shows that companies will spend on climate solutions if they see them as real.

Additionally, Amazon’s leadership could push other large companies to create similar services. More competition in the carbon credit market can give businesses better choices. It can also direct more funds to projects that cut emissions. 

• However, the voluntary carbon market has faced challenges lately. Amazon’s success will rely on its ability to ensure transparency and create real impact.

Amazon’s carbon credit service could help solve market problems. It may improve trust, boost demand, and encourage more businesses to invest in climate change projects.

Carbon credits can be useful, but many people are skeptical. Critics say they let companies postpone needed cuts in emissions. To tackle these issues, Amazon makes sure that businesses focus on reducing real emissions before buying offsets.

The company has also invested in Beyond Value Chain Mitigation (BVCM). This means they fund climate solutions outside their direct impact. Amazon has teamed up with the LEAF Coalition. Together, they have raised over $1 billion to protect tropical forests.

Looking Ahead: The Future of Amazon’s Carbon Credit Initiative

Amazon’s new carbon credit service shows a bigger move toward corporate responsibility in carbon markets. As demand for high-quality offsets grows, Amazon’s platform could play a vital role in scaling up investments in climate solutions worldwide. Yet, the long-term success of this initiative will depend on:

• Ensuring Market Integrity. Amazon must continuously track and improve the verification process for carbon credits.
• Encouraging More Corporate Participation. Expanding eligibility to a broader range of companies while maintaining high standards.
• Tracking Real-World Impact. Measuring and publicly reporting the climate benefits of the funded projects.

Amazon’s Sustainability Exchange expansion provides businesses with a valuable tool to offset unavoidable emissions while driving investments in environmental solutions. With this action, Amazon’s role in the voluntary carbon market is growing. Its leadership could set a new standard for responsible corporate action on climate change.

• FURTHER READING: Amazon’s $1 Billion Move Towards Net Zero: Logistics Electrification Across Europe

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The Science Based Targets initiative (SBTi) has released a draft update of its Corporate Net-Zero Standard. This framework helps companies set and reach science-based emissions reduction targets.

The 132-page document, Corporate Net-Zero Standard Version 2.0, shares important updates. These changes focus on flexibility, accountability, and aligning corporate actions with global temperature goals.

The draft is open for public feedback until June 1, 2025, after which it will undergo further revisions before final approval. 

SBTi Chair Francesco Starace emphasized the importance of the net zero standard overhaul, noting:

“The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net zero. Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever.” 

The Major Revisions in SBTi’s Net-Zero Standard

The new draft has several key changes. These include Scope 3 emissions accounting, carbon removal targets, and governance expectations.

Stronger Requirements for Scope 3 Emissions

Scope 3 emissions, which cover indirect emissions from a company’s value chain, have long been a challenge for corporations. Over half of the companies surveyed by SBTi said Scope 3 is their biggest hurdle to reaching net zero. The updated draft proposes new rules for this emission:

• Large companies, those earning over $450 million, must set Scope 3 targets. This rule applies no matter how much they contribute to total emissions.
• Businesses should identify high-emission activities. These should account for at least 1% of their Scope 3 footprint or exceed 10,000 metric tons of CO₂ annually.
• The old fixed-percentage rules for Scope 3 targets are gone. Now, there’s a flexible system that highlights high-impact emissions categories.
• Companies need to use their influence to make sure top suppliers set net-zero targets. This can be done through commitments to cut emissions or by using procurement practices that align with net-zero goals.

This approach seeks to balance what is doable and what is ambitious. It helps companies focus on the biggest sources of emissions in their value chains.

New Approach to Carbon Removal Targets

The draft also sets carbon removal targets to help reduce residual emissions. Companies can add high-integrity carbon removal efforts to their path toward net zero. Three pathways are under consideration in the updated standard:

1. Mandating carbon removal targets alongside emissions reduction commitments.
2. Providing recognition for voluntary carbon removal efforts in corporate strategies.
3. Allowing flexibility in how companies address their residual emissions.

This proposal shows a significant change. It aims to include more carbon removal solutions in corporate net-zero strategies. This shift could boost investment in technologies like direct air capture and nature-based solutions.

• RELATED: Microsoft Leads as Carbon Removal Credits Hit 8 Million Tonnes in 2024

Tighter Governance and Monitoring

To enhance credibility and accountability, SBTi is introducing stricter governance measures:

• Large companies must set net-zero targets within 1 year of commitment, down from the previous 2-year timeframe.
• Organizations will be subject to random audits to verify compliance.
• Companies should check their baseline emissions every year. They need to update their targets if big changes happen, such as mergers or acquisitions.
• A formal climate transition plan must be published within 12 months of target validation.

These measures aim to prevent greenwashing and ensure that companies remain on track to meet their commitments.

What Is the Potential Impact on Carbon Markets?

The new SBTi standard will likely impact voluntary carbon markets, corporate sustainability plans, and rules.

Potential Boost for Carbon Credit Markets

One of the most debated aspects of the revised standard is its evolving stance on carbon credits. SBTi is looking for new ways to include Beyond Value Chain Mitigation (BVCM) in offsetting Scope 3 emissions, even though its use is still limited. This idea lets companies fund emissions reduction projects beyond their own operations. These include reforestation or carbon capture.

If SBTi accepts specific high-integrity carbon credits, demand may rise. This could lead companies to fund big mitigation projects outside their immediate operations. However, concerns remain about ensuring the integrity and permanence of these credits.

Implications for Corporate Climate Strategies

The proposed changes mean companies can’t just focus on overall emissions targets anymore. They need to take a more strategic and data-driven approach to manage emissions. Businesses will need to keep in mind these things:

• Improve supply chain transparency and engagement to meet stricter Scope 3 requirements.
• Invest in renewable energy and zero-carbon electricity procurement.
• Consider carbon removal projects earlier in their net-zero planning rather than treating them as a last resort.

Pressure on Regulators to Align Standards

As SBTi’s framework gets stricter, regulators might feel pressure to match their policies to the standard. This could lead to:

• Stricter mandatory reporting requirements for large corporations.
• Increased scrutiny of corporate climate claims and carbon offset use.
• Greater integration of voluntary carbon market mechanisms into national and regional climate policies.

The Key Challenges and What Comes Next

The proposed updates are a step forward for corporate net-zero strategies, but challenges remain:

Balancing ambition and feasibility can be tough. Some businesses might find it hard to meet the new rules, especially when it comes to Scope 3 emissions tracking.

Ensuring high-integrity carbon removal. The effectiveness of proposed carbon removal targets depends on rigorous verification and permanence criteria.

Industry adaptation. Companies will need time and resources to adjust to the new reporting and compliance standards.

SBTi is currently accepting feedback from corporations, NGOs, policymakers, and other stakeholders until June 1, 2025. The team will publish a second draft after this consultation phase, and they expect to receive final approval by 2026.

Companies that set new near-term targets in 2025 and 2026 can use the current Corporate Net Zero and Near-Term Criteria methods. However, from 2027 onward, all targets must follow Version 2.0.

SBTi’s updated net zero standard marks an important step in corporate climate governance. The new framework seeks to speed up real climate action. It does this by strengthening Scope 3 requirements, adding carbon removal strategies, and boosting accountability.

The standard has challenges, but it can greatly impact corporate sustainability and global carbon markets. Businesses need to get ready for these changes so they can stay credible as part of the global move to net zero.

• READ MORE: How Effective Are Carbon Credits in Corporate Net Zero? SBTi Speaks

The post SBTi’s Version 2.0 Standard Pushes Companies to Net Zero: What Are the Key Updates? appeared first on Carbon Credits.

Copper is essential for any modern technology. It powers electrical grids and supports clean energy. It’s also used in electronics and vehicles. The U.S. relies a lot on foreign copper supplies. This raises big concerns about supply security.

Recently, President Donald Trump ordered an investigation into possible tariffs on copper imports. These tariffs might help U.S. mining by making domestic copper cheaper. But they could also increase costs for EVs and renewable energy.

U.S. Faces a Critical Minerals Challenge

S&P Global found that the U.S. has major challenges in securing critical minerals. Robert Friedland, founder of Ivanhoe Mines, warned that depending on foreign sources puts the country in a “dangerous position.”

At CERAWeek, he noted that Wall Street’s focus on quick profits is driving investments away from mining. Developing a new mine takes decades, but only a few have been built lately.

Friedland also suggested a U.S. sovereign wealth fund for domestic mining. This would be like the funds China and Japan have.

Top mining leaders, such as Elias Scafidas from Rio Tinto, say Western companies struggle with long-term funding. Investors hesitate to back mining projects. This is mainly because these projects take too long to become profitable.

Rising Copper Demand Exposes U.S. Supply Gaps

According to the National Mining Association, China controls the supply of 30 out of 44 key minerals. In 2024, the U.S. depended entirely on imports for 12 of the 50 minerals designated as critical in the government’s 2022 list. It also relied on foreign sources for more than half of another 28 minerals.

• As per USGS, In 2024, the copper production of U.S. mine production was an estimated
  1.1 million tons, a decrease of 3% from that in 2023. Arizona accounted for ~ 70% of domestic output. Copper was also mined in Michigan, Missouri, Montana, Nevada, New Mexico, and Utah.

The Center for Strategic and International Studies (CSIS) highlights that the global push for net-zero emissions by 2050 is set to double copper demand by 2035. The key force would be AI-driven demand.

• AI data centers alone are expected to consume up to 200,000 metric tons of copper per year from 2025 to 2028, potentially creating a 2.6-million-metric-ton shortfall by 2030.

BHP projects copper demand will grow by 2.6% annually through 2035, surpassing 50 million metric tons per year by 2050. This outpaces the 1.9% annual growth seen between 2006 and 2021.

S&P Global also revealed that to boost domestic production, the U.S. Department of Energy recently announced $500 million in funding for mining and processing. However, experts believe this is far from enough. Without major changes, the U.S. risks falling further behind in securing its mineral supply.

Despite soaring demand, the copper supply chain faces major obstacles. Labor shortages, strict environmental regulations, and rising costs are slowing production. Experts warn that without faster permitting and increased investment, the U.S. could struggle to secure its mineral supply chains.

• READ MORE: Copper Crunch! How Trump’s Tariffs and Supply Shocks Drive Prices Up

Freeport-McMoRan Pushes for Critical Status to Boost U.S. Copper

Amid this copper conundrum, Arizona-based Freeport-McMoRan Inc, a leading global metals company aims to have copper labeled as a critical mineral.

CEO Kathleen Quirk said at the CERAWeek by S&P Global conference,

“Having the incentives and clarity around those would be a big plus for the domestic copper industry. People are understanding more what copper is used for and its importance in our economy. It’s just a matter of time before it’s classified as a critical mineral.”

She also highlighted that this move could unlock $500 million yearly in tax credits under the Inflation Reduction Act.

Notably, Freeport reported a 3.1% drop in fourth-quarter earnings, falling to $5.72 billion due to lower copper and gold production. The revenue decline highlights ongoing supply issues and market uncertainty in the U.S.

To stay competitive, Freeport is pushing for policy changes to strengthen its global position. The company plans to boost U.S. copper production. This includes developing the Lone Star mine in Arizona that could add 100,000 metric tons each year.

Resource Nationalism and Global Trade Tensions

Countries rich in minerals like cobalt, lithium, and copper are gaining control over their resources. In the past five years, 47 countries have made mining rules stricter. This includes 17 major producers.

According to the Resource Nationalism Index, the number of high-risk countries has jumped from 22 in 2016 to 38 today. Chile and Peru supply 35% of the world’s copper. Recently, they increased government involvement, which creates uncertainty for miners.

                   Copper Production by Country 2025

Resource control is also fueling global tensions. The U.S.-China trade war has grown stronger. China is now limiting exports of gallium, germanium, and antimony. In response, the U.S. is ramping up domestic mining and even considering resource acquisitions like Greenland.

Meanwhile, the European Union is working to reduce its dependence on China. It recently passed the Critical Raw Materials Act to boost local production and recycling of key minerals. As global alliances shift, securing critical minerals has never been more important.

Can the U.S. Sustain? 

Goldman Sachs predicts U.S. copper imports could surge by 50% to 100% in the coming months as buyers rush to secure supply ahead of potential tariffs.

Currently, the May 2025 U.S. copper price is trading at $756 per metric ton above the global benchmark on the London Metal Exchange (LME). This increase follows Trump’s. investigation into potential tariffs aimed at boosting domestic copper production.

Copper is More Critical than Ever

The post U.S. Copper Crisis: Can Freeport-McMoRan Secure ‘Critical’ Status for the Energy Metal? appeared first on Carbon Credits.

On March 14, 2025, Prime Minister Mark Carney announced the end of Canada’s federal consumer carbon tax, effective April 1. This move marks a major shift in the country’s climate strategy. While the government insists it’s still committed to cutting emissions, the big question remains—how will Canada meet its climate goals without a direct tax on consumers?

Let’s take a closer look at Canada’s carbon tax battle, its impact on citizens, and what it means for the country’s climate goals.

No More Carbon Tax! What’s Carney Really Up To?

Canada launched its carbon pricing system in 2019 under Prime Minister Justin Trudeau. The goal was to cut emissions by charging businesses and consumers for pollution. This encouraged a shift away from fossil fuels.

B.C.’s 2025 budget estimated that the consumer carbon tax would bring in about $2.8 billion. Out of this, around $1 billion would be given back to the public through the Climate Action Tax Credit.

However, rising fuel costs and inflation frustrated many Canadians. They saw the tax as an extra burden. To ease the strain, the government scrapped the consumer carbon tax.

• The carbon price started at CAD 20 per ton in 2019 and increased annually, reaching CAD 80 per ton in 2024. It was set to climb to CAD 170 per ton by 2030.

News agency National Post highlighted Carney’s statements. He said,

“We have already taken a big decision as this cabinet because this is a cabinet that’s focused on action, it’s focused on getting more money in the pockets of Canadians, it’s focused on building this economy.”

Politics played a big role in scrapping the tax. Conservative leader Pierre Poilievre made it a key promise, saying it raised costs for families and raised inflation. However public opinion was divided. Some saw the tax as costly and ineffective, while others believed it helped reduce emissions.

• MUST READ: A Tale of Two Climate Policies: Canada Rethinks Consumer Carbon Pricing While U.S. Drops Social Cost of Carbon

The Political Battle Over Carbon Pricing

The heat of a political showdown is already palpable. Pierre Poilievre wants to go further. He vows to eliminate all carbon pricing, including taxes on big polluters. He argues the policy hurts businesses and workers, making Canada less competitive.

Reuters reports that Conservatives claim the carbon tax fuels inflation. But the tax is revenue-neutral, and about 80% of Canadians get more in rebates than they pay.

The Wall Street Journal covered Poilievre’s campaign-style event at a steel plant near Ottawa. He warned that Carney’s government might raise industrial emissions taxes to make up for lost consumer carbon tax revenue.

“The combination of Trump’s tariffs and Carney’s carbon taxes would be a disaster for the workers. Workers would lose wages, consumers would pay more money, and jobs would leave Canada, making us even more dependent on the Americans, just like Trump wants.” said Poilievre

He also vowed to repeal all carbon pricing measures if elected, saying,

“Technology, not taxes, is the best way to fight climate change and protect our environment.”

Carnie also defended his action saying cutting the consumer tax doesn’t mean abandoning emissions goals. Heavy polluters will have to still pay. His proposal shifts costs to industries while funding green programs like EV rebates and home energy upgrades.

Carbon Tax Cut: Relief for Households, Concerns for Climate

Even within the Liberal Party, concerns grew over the carbon tax’s impact. In 2023, the government removed the tax on home heating oil, recognizing that lower-income families were struggling. With an election coming up, cutting the consumer tax may have been a strategic move to win back voter support.

Carney said,

“Based on the discussion we’ve had and consistent with a promise that I made and others supported during the (Liberal) leadership campaign, we will be eliminating the Canada fuel charge, the consumer fuel charge, immediately.”

The removal of the consumer carbon tax brings some immediate changes for Canadian households.

• Fuel prices will drop, making gasoline, diesel, and home heating more affordable.
• Propane and natural gas will no longer be taxed.
• Households that received Canada Carbon Rebate payments will get their final installment in April 2025.

For many Canadians, these savings are a relief amid the rising cost of living. However, climate advocates worry that fossil fuel use could increase without financial incentives to cut emissions.

Big industries like steel will still pay carbon fees, and government rebates for EVs, heat pumps, and home energy upgrades will continue. Some provinces, like British Columbia and Quebec, may also keep their carbon pricing systems.

Can Canada Reach Its Climate Goals Without the Carbon Tax?

Canada aims to cut emissions by 40-45% from 2005 levels by 2030 under the Paris Agreement and reach net-zero by 2050. The Canadian Climate Institute estimated that the carbon tax would have reduced emissions by 8-14% by 2030. Without it, new policies will be needed to stay on track.

The consumer carbon tax covered emissions from transportation and buildings. While the tax is gone, government rebates for EVs and home upgrades will continue to help cut emissions in these sectors.

Carney says this change is part of a bigger plan to fight climate change and keep Canada’s economy strong. He has suggested other ideas, like better clean energy incentives and tougher rules for big polluters. Meanwhile, Poilievre wants to replace carbon taxes with expanded tax credits for green technology.

One thing is clear, Canada’s carbon tax may be changing, but the country’s climate policies will remain a key political battleground. The bottom line is simple—if it benefits both citizens and the climate, it’s a win.

• FURTHER READING: Canada’s 2035 Emissions Reduction Goal: Everything You Need to Know

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