Klarna To Contribute $2.3 Million To Climate Impact Projects

Klarna To Contribute $2.3 Million To Climate Impact Projects - Carbon Herald
Image: Gary L Hider/Shutterstock

Fintech shopping company Klarna announced on May 24 it will contribute $2.35 million toward several climate initiatives. 

This is the third round of contributions from Klarna’s internal carbon tax, which totals  $5.07 million and has supported 20 companies since 2021. As part of it, the company funds initiatives that tackle climate change.

“Klarna is committed to supporting impactful organizations long-term as a catalyst for change, to help them grow and maximize their impact,” said Salah Said, Head of Sustainability, Klarna.

Later this year, Klarna will contribute a part of the $2.35 million in funding to new carbon removal and carbon capture projects, which were chosen together with the fintech’s strategic partner Milkywire as part of the Climate Transformation Fund. Those include: 

● Carbon Capture Scotland, a UK-based firm that captures waste biogenic carbon from whisky distilleries. 

● Kenyan carbon removal company Takachar, which creates biochar from crop and forest residues.

● SeaO2, a Denmark-based company that uses electrochemical oceanic CO2 capture technology. 

● Mission Zero Technologies, which has developed an innovative, low-energy, Direct Air Mineralization (DAM) process to capture carbon from ambient air and turn it into rock. 

● Kenya-based Octavia Carbon, which builds machines that filter carbon from the atmosphere for permanent storage. 

● UK-headquartered Parallel Carbon, which develops a cost-effective process for Direct Air Capture and hydrogen production. 

● Canadian TerraFixing, which works on an adsorption-based Direct Air Capture. 

● Inplanet, an Enhanced Rock Weathering startup that works in Brazilian agriculture and focuses on removing carbon, while supporting local farmers. 

Relevant: Klarna, Carbonaires & HUSK To Develop Biochar Plant In Cambodia

Part of Klarna’s funding will go to previous investments such as HUSK, Silicate, and Interearth, and other parts of the Climate Transformation Fund.

“Carbon removal is a crucial part of reaching net zero, but the industry is in its infancy, requiring costly development, testing, and then scaling,”  said Robert Höglund, Climate Fund Manager, Milkywire. “Early funders like Klarna that prioritize the catalytic effect of their support can make an enormous difference in accelerating the sector.”

Klarna also focuses on reducing its own emissions. The company’s absolute CO2 footprint went down by 3.75% in 2022 compared to the previous year. Klarna has committed to reducing 50% of its CO2-intensity-based emissions by the end of this decade, and to reaching net-zero by 2040. 

Read more: Milkywire Adds Spotify And Klarna To Its Climate Transformation Fund

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts