• Amazon (AMZN) is financing a massive carbon removal project, purchasing 1.95 million tonnes of high-quality nature-based credits.
  • The initiative is expected to create 11,000 jobs and restore ecosystems, aligning with Amazon's climate goals.
  • This deal signals growing corporate demand for verified carbon credits and could influence market prices.

Amazon has committed to buying 1.95 million tonnes of carbon removal credits from one of the world's largest nature-based projects, according to people familiar with the matter. The project, which combines reforestation and land restoration, is expected to generate 11,000 jobs in rural areas, providing a significant economic boost while sequestering carbon. This marks one of the largest single purchases of nature-based credits by a corporation, underscoring Amazon's push to scale carbon removal as part of its net-zero target by 2040.

The investment comes amid heightened scrutiny of carbon credits, with buyers demanding higher integrity and additionality. Amazon's choice of a project that emphasizes biodiversity and community benefits reflects a broader shift toward projects with verifiable co-benefits. "This is a landmark deal for the market," said a carbon credit analyst at a major consultancy. "It shows that large buyers are willing to pay a premium for credits that deliver real climate and social impact."

Amazon has been building a diversified portfolio of carbon removal, including direct air capture deals and nature-based solutions. The company's sustainability chief said in a statement that the project "aligns with our commitment to high-quality carbon removal that restores nature and supports local communities." The credits are certified under a leading standard, ensuring rigorous verification. The deal is expected to close in the coming months, with the project set to begin implementation next year.

Neither Amazon nor the project developer immediately responded to requests for additional details. However, the move is likely to spur other tech and consumer goods companies to follow suit, potentially tightening supply of premium credits and increasing prices. Critics, however, warn that such projects must be carefully monitored to avoid issues like leakage or non-permanence.

Correction: An earlier version of this article misstated the number of credits as 1.95 billion tonnes. The correct figure is 1.95 million tonnes.