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Supporting high-impact projects.

Klarna’s unique sustainability approach is designed to create maximum long-term climate impact. Instead of purchasing carbon offset credits and making carbon neutrality claims, we are putting our money in carbon removal solutions to help mitigate the negative impacts of the climate crisis.

With funds generated by our internal carbon tax, Klarna is supporting a wide range of climate projects selected by the Climate Transformation Fund, among them carbon removal projects that aim to create as much impact per dollar as possible by 2030.

The Climate Transformation Fund.

Klarna is a founding partner of the Climate Transformation Fund, the ‘beyond-offsetting’ charitable fund curated by planet health platform Milkywire that selects and supports a wide range of projects addressing the climate crisis within the durable carbon removal, nature restoration & protection, and decarbonisation sectors. 

To help mitigate the worst impacts of the climate crisis and reach global net-zero emissions, Klarna has implemented an internal carbon tax to generate funds for the Climate Transformation Fund. We’ve set a $100 fee for Scope 1 (direct emissions), 2 (indirect emissions), and travel emissions plus $10 for the rest of scope 3. This has resulted in a total of $5.07 million to support climate projects since 2021.

In 2022 Klarna contributed over USD 2.6m to the Climate Transformation Fund supporting 16 projects, including six focusing on carbon removal. By the end of 2023, Klarna’s internal carbon tax will support over 20 companies tackling the climate crisis, funding initiatives from carbon removal to nature protection and decarbonization. Going forward, we will continue to support and select additional projects to work towards our 2040 net-zero target.

With this approach, we seek to achieve as much impact per dollar as possible, rather than buying a set amount of carbon credits. It also opens up the opportunity to support solutions that aim for policy change and innovate existing technology. For many projects, especially nature-based solutions like reforestation, the impact is rarely limited to reducing carbon emissions. We also focus on projects that prevent other negative environmental and social impacts related to human rights. In this way, we aim to support those most affected by the impacts of the climate crisis. We believe this approach can inspire others to also set ambitious targets, put a price on their emissions, and contribute to the vital climate solutions the planet needs.

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.

See Klarna 2022 ESG Report for more information.

Carbon Removal Ecosystem Infographic
Carbon Removal Ecosystem Infographic


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.



InterEarth grows a multi-species selection of highly adapted coppicing woody plants on low rainfall, and previously cleared farmland in Australia. Periodically, the plants are trimmed of their above-ground biomass and the harvested biomass is buried and encapsulated in dedicated subterranean chambers, engineered to close all pathways for decomposition providing safe long-term storage. The aim is to permanently store the carbon captured within the biomass.

The pre-purchase agreement from Klarna supports the first field trials of the project and will potentially remove over 8130 tonnes of CO2e, furthering the commercialization of this new climate technology. InterEarth is a project certified by the Puro Standard. The certification includes verification of the carbon net negativity of the project, assessment of permanence of 100 years, financial additionality, and environmental and social safeguards.

Read more here.



Husk Ventures in Cambodia creates biochar from the rice husk waste streams. Instead of the leftover husks getting burnt or decomposed, releasing the carbon stored in the plant, their technology stabilizes the carbon. Together with nutrients, this biochar is then used as fertilizer by organic farmers, restoring soil health and increasing yields. Our support helped Husk build their second biochar facility in 2021 and going forward, further scaling their business. Potentially this leads to remove 3500 tonnes of Carbon Emissions until the end of 2026.

Read more here.



Worldwide, $120 billion worth of crop and forest residues are burned in the open each year. India-based Takachar aims to remove CO2 and achieve net avoidance of carbon emissions by using crop residues to produce carbon-based bioproducts such as fertilizer blends, which intercepts carbon captured by growing plants and renders it stable in the soil. Takachar works together with local farmers, using patented and mobile technology to make economic use of this biomass, while reducing air pollution.

Klarna intends to make a pre-purchase from Takachar in 2023.

Read more here.


Carbon capture.

Fermentation sources are a relatively unexplored carbon removal source. Carbon Capture Scotland is a UK-based capture asset specialist focusing on capturing waste biogenic CO2 from whisky distilleries in Scotland and stores it via geological storage. Their bespoke technology that reduces the cost and energy footprint of capturing and processing high purity CO2 from fermentation sources. 

Klarna intends to make a pre-purchase from Carbon capture Scotland in 2023.

Read more here.


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.



Silicate is a climate solutions company harnessing the power of mineral weathering to permanently remove carbon dioxide from the atmosphere. The company is the first in the world to capitalise on the sizeable carbon-removal potential of waste concrete as an enhanced weathering material. With the support of Klarna, Silicate will showcase its ability to permanently and safely remove triple-digit tonnes of carbon dioxide from the atmosphere when it launches its first commercial-scale pilot in south county Wexford this September.

Klarna pre-purchased 900 research tonnes of removed carbon emissions.

Read more here.



Inplanet (Enhanced Rock Weathering): InPlanet is working in Brazil, being the first startup purely focussed on the tropics, spreading silicate rock powder under optimal soil and climate conditions for fast and effective weathering and capture removal. The solution stores carbon in soil leachates, waterways, and ocean sediments. As a co-benefit InPlanet restores degraded tropical soils, produces more nutritious food and reduces the dependence on conventional chemical inputs in agriculture.

Klarna intends to make a pre-purchase from Inplanet in 2023.

Read more here.

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.



Heirloom is a new company developing promising, novel direct air capture technology to extract CO₂ directly from the ambient air using common minerals. The process starts by maximizing the mineral surface area exposed to the ambient air. After absorbing CO₂ like a sponge, the minerals are heated, releasing the CO₂ from the mineral so it can be captured and stored underground permanently. Their goal is to be able to do this at a cost of less than 100 USD per ton. We are one of their earliest customers, helping them remove their first tonnes and get started on their journey to remove and store CO₂, cheaply and at scale.

Klarna pre-purchased carbon removal credits in 2021 and 2022.

Read more here.



Climeworks empowers people to reverse climate change by permanently removing carbon dioxide from the air with its direct air capture technology. The air-captured CO2 is returned to earth, stored safely and permanently away for millions of years. By becoming a customer to Climeworks’ carbon dioxide removal service, we contribute to the scale-up of their solution.

Klarna pre-purchased carbon removal credits in 2021.

Read more here.


Octavia Carbon.

Kenya-based Octavia Carbon – the Global South’s first Direct Air Capture (DAC) company – designs, builds and deploys DAC technology that uniquely leverages Kenya’s geothermal energy, geology & talent to radically accelerate DAC down the cost curve. Their vision is to make Kenya the leading hub to filter CO2 from air and store it permanently underground in Kenya's basaltic geology.

Klarna intends to make a pre-purchase from Octavia Carbon in 2023.

Read more here.



Canadian TerraFixing captures CO2 from the air via a novel Direct Air Capture (DAC) process that employs adsorption technology. It was designed to operate in cold remote locations where extracting CO2 from the air is easier and cheaper, and where there is almost endless scalability of renewable wind power.

Klarna intends to make a pre-purchase from TerraFixing in 2023.

Read more here.


Parallel Carbon.

Parallel Carbon is a UK company developing among the world's most affordable process for DAC and hydrogen production. They combine ancient geochemistry with modern electrochemistry to remove carbon and eliminate fossil fuels in parallel. By utilizing an electrolyzer that runs exclusively on renewable power, they are creating a capital-efficient process to unlock multiple climate change mitigation pathways.

Klarna intends to make a pre-purchase from Paralell Carbon in 2023.

Read more here.


Mission Zero Technologies.

Based in the United Kingdom, Mission Zero Technologies, a Direct Air Capture (DAC) startup, have developed a breakthrough technology that combines CO2 capture and mineralization in one process. The 'Medusa' Process is simple and energy efficient compared to other CDR methods, and is projected to be much cheaper. Mission Zero's Direct Air Mineralisation (DAM) process captures atmospheric CO2 and turns it into rock in a matter of days. The captured carbon is stored in the form of durable carbonates that can be used in building materials or land-filled in a responsible manner.

Klarna intends to make a pre-purchase from Mission Zero in 2023.

Read more here.


The ocean already takes up a large part of the CO₂ emitted to the atmosphere, and it can help in removing more. There is a broad range of methods that can be used for ocean carbon removal such as removing CO₂ from it directly, or using it to grow macroalgae to capture carbon. It is a developing area with need for more research and development. By funding early companies we can help accelerate the knowledge.

Sea02 v2


Based in the Netherlands, SeaO₂ provides cost-efficient atmospheric carbon removal by leveraging our biggest ally in battling climate change – the ocean, which has 150 times more carbon (as dissolved) compared to the atmosphere. SeaO2’s electrochemical oceanic carbon capture technology treats water to capture and store its CO2 content, returning the treated water to the ocean’s surface layer where it can continue to absorb more CO2.

Klarna intends to make a pre-purchase from SeaO2 in 2023.

Read more here.