Investing in high-impact projects.
Klarna’s unique sustainability approach is designed to create maximum long-term climate impact. Instead of purchasing carbon credits and creating climate neutrality claims, we are investing in solutions needed to mitigate the worst impact created by the climate crisis.
With funds generated by our internal carbon tax Klarna is sponsoring a wide range of climate projects selected by the Climate Transformation Fund and among them carbon removal projects to aim to create as much impact per dollar as possible by 2030.
The Climate Transformation Fund.
To help mitigate the worst impacts of the climate crisis and reach global net-zero emissions, Klarna partnered up with the impact platform Milkywire to set up the Climate Transformation Fund that selects and supports a wide range of projects.
In 2022, Klarna contributed USD 1.7 million to projects selected for the Climate Transformation Fund, of which USD 715k was allocated to the WRLD foundation earmarked for projects within reforestation, nature protection, and decarbonization, and USD 955k was used to purchase permanent carbon removal credits. This was spread among 4 initiatives that are leading the way in various high-impact carbon removal technologies such as biochar, enhanced weathering, Woody Biomass Burial, and Direct Air Capture, specifically USD 100k to Heirloom, USD 250k to Husk, USD 355k to Inter Earth and USD 250k to Silicate. By committing to these pre-purchase agreements, Klarna is helping to catalyze the emerging carbon removal market to help bring about the growth of new solutions.
This is on top of Klarna’s 2021 contribution which amounted to over USD 1.05m in projects selected for the CTF.
See The Climate Report 20/21 for more information.
Biomass removes CO₂ from the atmosphere and stores it underground or in long-lived products. Biochar is a charcoal-like substance that’s made by burning organic material from agricultural and forestry wastes in a controlled process called pyrolysis. The technology shows promise in mitigating climate change and improving soil quality, as well as reducing waste and producing energy as a byproduct. Aside from biochar, the technology of woody biomass burial offers a unique opportunity for large-scale, affordable, and fully additional carbon removal
The process of Enhanced weathering aims to remove CO2 from the atmosphere during the burial of weathered minerals. The natural process of erosion is accelerated by maximizing the surface area of CO₂ reacting minerals to the air. The products formed in the process potentially help lessen the ocean acidification in the oceans or improve soil health and yields on land.
Direct Air Capture.
One new technology that has been developed to scalably capture CO₂ directly from the atmosphere is direct air capture. This technology captures CO₂ is concentrated, and safely stores underground. Klarna agreed to pre-purchase this service of direct removal of CO₂ from the atmosphere from two different vendors to help make it more affordable in the future.