Amazon is launching a $2 billion internal venture-capital fund to invest in clean energy. The fund, called The Climate Pledge Fund, will invest in companies across several industries from transportation, energy, manufacturing, food and agriculture and battery storage.
The new fund is focused on technology investments to reduce the impact of climate change, the latest sustainability initiative from the company. The aim is to help amazon and the climate change cofounders reach a goal of “net-zero” carbon emissions by 2040.
This will be reached through reducing the climate impact of their operations both through reduced use of fossil fuels and investments in projects like reforestation.
“Companies from around the world of all sizes and stages will be considered, from pre-product startups to well-established enterprises,” Amazon Chief Executive Jeff Bezos said in a statement. “Each prospective investment will be judged on its potential to accelerate the path to zero carbon and help protect the planet for future generations.”
Amazon expects its facilities to be 100 per cent-powered using renewable energy by 2025, helped in part by the development of large-scale wind and solar projects. Their completion timeline is projected at five years ahead of schedule from the company’s original timeline.
Under pressure from climate-conscious investors, a number of major corporations have also set targets to reduce their emissions in an effort to align their business operations with the Paris accord.
Many companies hope to reach these emissions targets by investing in what is known as carbon offsets projects outside normal company operations that can reduce emissions
In addition to Amazon’s work, Jeff Bezos has pledged $10 billion of his personal fortune to start the Bezos Earth Fund to fight climate change. He said, he will start issuing grants in the summer and that the fund would back scientists, activists and efforts “to help preserve and protect the natural world.”