Payments provider Klarna is joining forces with carbon asset management specialist Carbonaires and biochar company HUSK to develop a biochar plant in Cambodia.
All three sides will be responsible for different parts of the projects, where Carbonaires will fund the machinery in the new facility, and Klarna will purchase all of the high-quality carbon credits generated by the biochar production as part of its CO2 reduction program.
In turn, HUSK will be bringing to the table its unique expertise in the development of a circular economy solution particularly for rural areas, based on biochar made from rice husks.
HUSK’s novel product not only helps remove planet-warming carbon dioxide from the atmosphere, but also improves the quality of soil, boosts crop yields and helps local communities increase their revenue.
During its initial phase, the new biochar project in Cambodia is expected to remove roughly 16,000 metric tons of CO2 from the air.
Carbonaires, which specializes in making carbon credits available for purchase to businesses and organizations, was founded in 2021 specifically with the intention of funding high-quality, transparent carbon removal projects.
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To achieve this, the company uses a streaming model to direct funds towards projects that can demonstrate their ability to genuinely reduce atmospheric CO2, which is also what it will be doing in this new partnership with Klarna.
2021 was also the year when the Swedish payment provider launched its Climate Transformation Fund together with Milkywire and thus became heavily involved in the carbon removal space and has since supported a long list of different climate projects.
Carbonaires co-founder Michael Spenley announced his delight to be working together with both Klarna and HUSK in a comment on the recent partnership.
“This collaboration is a great example of what can be achieved when companies share a vision to tackle an issue as devastating as climate change,” Spenley said.
Read more: Biochar Will Dominate The Carbon Removal Sector – Hannes Junginger, Carbonfuture CEO