Financial services company Stripe has launched a service that allows its partners and clients to pre-order “carbon removal” through Frontier, the advance market commitment vehicle the company co-founded together with other tech companies.
“Climate Orders takes Frontier’s core expertise of finding, vetting, and contracting with the most promising carbon removal companies and makes it available to a much broader set of businesses. We hope this unlocks even more of the demand needed to get carbon removal to climate-relevant scale,” said Lauren Polansky, climate product manager at Stripe.
Frontier was launched in 2022 with companies like Alphabet, Shopify, Meta and McKinsey Sustainability with the goal of purchasing over $1 billion carbon removal tons in pre-purchases from companies in the burgeoning industry.
Climate Orders will be part of the Stripe Climate product which provides two options for buying carbon removal directly – either by pre-ordering a number of removal tons from Frontier’s portfolio or by setting up a portion of their revenue to support startups in the industry on a subscription model.
The pre-orders allow companies that have specific goals in terms of offseting their carbon footprint, while the revenue model (called Climate Commitments) is for those who want to support carbon removal companies and help them develop faster.
The service also has an API through which partners can offer carbon removal to their customers as well.
Climate Orders is already in use with companies like enterprise climate platform Watershed and carbon market platfrom Patch among its early adopters.
The service comes as another sign of the importance of small and medium sized businesses to generating demand for the carbon removal industry. Similar initiatives are being developed by others players in the payments space like Klarna and Tide.