Jeff Bezos’s decision to cut funding from his $10 billion Earth Fund for SBTi has raised concerns about the future of global climate initiatives
Amazon.com Inc. founder Jeff Bezos’s $10bn climate and biodiversity fund has stopped funding Science Based (SBTi), an international body that assesses if companies are decarbonising in line with the Paris Agreement. This move marks a sharp contrast to Bezos' earlier climate commitments, as it coincides with the new political reality following US President Donald Trump’s exit from the Paris Climate Agreement.
According to Financial Times (FT), the Bezos Earth Fund was one of the largest funders of the SBTi which Bezos helped establish five years ago. The $18m grant from Earth fund, originally set to be a three-year commitment, was extended in 2021 but expired last year as planned. This financial support had been essential in helping SBTi grow and become an independent climate change organisation.
In response, the SBTi told Bloomberg that it is now working on developing a diversified pipeline of financial backing through a mix of donor funding and income generated through validation services.
The Earth Fund and the Ikea Foundation were the two core funders of the initiative, accounting for 61% of its total funding last year.
The shift in funding is significant, as it raises questions about Bezos’ earlier commitment to climate action. In January, Bezos emphasised the urgent need to address environmental issues at the New York Times’ DealBook Summit. Despite the Earth Fund withdrawal, the Bezos Foundation continues to back initiatives like the Greenhouse Gas Protocol and the World Resources Institute.
The decision to stop backing SBTi has raised concerns among SBTi staff members about the influence of the Bezos fund last year. This move follows reports from the FT indicating that both the Bezos fund and advisors to former US climate envoy John Kerry had supported a controversial move that would allow companies to widely use carbon credits, which has sparked debate about their effectiveness.
On January 20, President Donald Trump signed an executive order directing the United States to withdraw from the landmark Paris Climate Agreement one again, further distancing the country from global climate efforts and its close allies.