Last week the environmental impact platform Milkywire shared another contribution to its Climate Transformation Fund, with several Scandinavian tech companies including Spotify and Klarna, deciding to donate over $5 million.
The fund employs a multi-pronged approach toward long-term CO2 reduction by focusing resources on durable carbon removal, nature restoration and decarbonization.
After being established in 2021 it has invested in a total of 17 projects with some of the more prominent names being direct air capture company Heirloom, Human Rights Watch and in particular their coal removal initiative and Warsi, a forest protection grassroots organization.
The company is also ranked #5 in cdr.fyi’s ranking of carbon removal marketplaces.
Nina Siemiatkowski, CEO and founder of Milkywire, commented on the contribution by saying: “As the urgency for climate action grows, we have seen many companies invest in climate offsetting schemes that do not provide a meaningful impact on our planet. The Climate Transformation Fund was created to offer a pioneering solution for companies seeking to maximize their impact towards decarbonization. Internal carbon fees are a powerful way for companies to take responsibility for their emissions.”
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Most donor companies have used or use carbon prices to raise money for climate projects. According to a recently published whitepaper by Milkywire, companies are advised to set an internal carbon price using a mechanism that reflects the full cost of their emissions.
For example, Klarna set a price of $100 for Scope 1 (direct emissions), Scope 2 (indirect emissions), and travel emissions, and $10 for the remainder of Scope 3. This generated a figure of $2.35 million that were earmarked for climate projects last year.
Milkywire is also developing new partnerships for companies that want to use internal carbon fees and other initiatives that leads to efficient offsetting of emissions across all emission scopes. The organization has partnered up with Boston Consulting Group (BCG) and carbon management platform Sweep in this endeavor that aims to work with customers, partners and employees.