Climate Transformation Fund

A best-practice alternative to carbon credits: a curated portfolio of high impact projects driving global net-zero
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Our solution

Designed for sustainability leaders

Launched in 2021, the Climate Transformation Fund (CTF) is a premier solution for companies committed to going beyond emission reductions. This portfolio of high-impact, innovative projects is designed to accelerate global net-zero goals. Aligned with SBTi’s Corporate Net-Zero Standard, the CTF aims to maximize long-term CO₂ reduction or removal per dollar spent. It focuses on innovative CDR technologies, effective nature restoration, and leveraging policy to drive large-scale decarbonization. These efforts are supported by three critical pillars:

  • Durable carbon removal

  • Decarbonization

  • Protecting and restoring nature

Carbon removal project in a desert landscape
Durable carbon removal (CDR)
Decarbonization
Decarbonization iconDecarbonization
Person in straw hat wading in water, tending to young mangrove plants in a flooded coastal area.
Nature protection and restoration
Our approach

What should a best-in-class company do for our climate?

Leading frameworks like SBTi, WWF/BCG, and Gold Standard/Milkywire endorse a four-step approach to credible climate action. Responsible companies go beyond emission reductions and implement an internal carbon fee to support climate projects beyond their own value chains. By funding these external climate projects, companies can drive innovation and internalize environmental costs in order to reach global net-zero.

Step 01
Account, disclose, and reduce emissions

Measure your climate footprint, including Scope 1, 2, and 3 emissions. Align with Science-Based Targets (SBT) to reduce and mitigate CO₂ intensity.

Step 02
Price emissions with an internal carbon fee

Set an internal carbon fee to fund high-impact projects. Read our guide to learn how.

Step 03
Fund high-quality climate action

The CTF helps companies support carbon removal, decarbonization, and nature restoration projects to reach global net-zero.

Step 04
Report back and make honest claims

Communicate your contributions and impact to stakeholders, showcasing your commitment to climate-positive goals.

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Maximize your impact

Invest in your brand, through impactful projects

Framework

Climate Transformation Fund pillars

The Climate Transformation Fund encompasses a wide array of projects, each addressing different themes and approaches. We focus on three main pillars, which support the portfolio's overall framework. Within each pillar, various projects pursue similar goals through different methods.

Durable carbon removal (CDR)

Carbon removal project in a desert landscape

CDR is one of the most crucial solutions to reach and maintain net-zero emissions and limit global warming. To counterbalance fossil emissions from the long carbon cycle, the carbon removed needs to be stored durably. While solutions for durably removing carbon are still nascent, pre-purchasing carbon removal from startups can help kickstart the sector, making it an affordable and climate-relevant solution in the future. When credits or certificates are bought, they will be retired, meaning they cannot be resold and will not be counted as financial instruments.

Approaches
Ocean CO₂ capture: Electrochemistry
Enhanced rock weathering (ERW)
Woody biomass burial
Bio Energy Carbon Capture and Storage (BECCS)
Direct Air capture with storage (DACs)
Biochar
Example selection criteria
  • High additionality: Projects are evaluated on their ability to remove tonnes that wouldn't occur without funding.

  • Potential: Projects are assessed for their potential to become a significant solution to the climate crisis.

  • Catalytic effect: Projects are prioritized if donations or purchases lead to greater growth of the method beyond just the purchased tonnes.

  • Co-benefits: Projects are given higher priority if they benefit people in poverty or help ecosystems beyond carbon storage.

Example project

SeaO₂ provides cost-efficient atmospheric carbon removal by leveraging the ocean, which has 150 times more carbon (as dissolved) compared to the atmosphere. SeaO₂’s electrochemical oceanic carbon capture technology is an early stage technology that demonstrates a lot of potential for cost efficient carbon removal.

SEAO2

Decarbonization

Decarbonization

There is a need to support efforts that can reduce emissions. Change is not happening fast enough on its own. A high-impact way of accelerating emission reductions is by supporting effective organizations influencing decision-makers to implement more ambitious climate policies. Another way is to support innovation in new fossil-free energy solutions in cases where market forces are not providing the necessary funds.

Approaches
Emission reduction
Advocacy
Example selection criteria
  • Co-benefits: Projects that benefit marginalized communities, provide social co-benefits, or aid ecosystems beyond carbon storage are prioritized.

  • Climate impact: Projects are assessed on their potential direct or indirect effect on avoided emissions.

  • High additionality: Projects unlikely to occur without support are prioritized, avoiding those similar to already funded initiatives.

  • Catalytic effect: Projects are evaluated for their potential to scale and create impact beyond their immediate scope, especially as pioneering solutions.

Example project
PxD logo

This project promotes Leaf Color Charts (LCCs) among smallholder rice farmers in India to help farmers optimize nitrogen fertilizer use, thereby reducing their production costs and nitrous oxide emissions for the global community. PxD will collaborate with an implementation partner to distribute 10,000 LCCs with accompanying digital advisory services during this project. This project addresses the critical need for timely and customized fertilizer application to reduce GHG emissions, with the potential for continued scaling through government and other partners and significant long-term emissions reduction.

Precision Development (PxD)

Nature protection and restoration

Person in straw hat wading in water, tending to young mangrove plants in a flooded coastal area.

Protecting and restoring nature is of paramount importance for addressing climate change. Deforestation and forest degradation result in substantial carbon emissions as forests are destroyed. Preserving the carbon stored in existing ecosystems and restoring carbon to areas that have lost it are critical steps in mitigating climate change. These actions not only help reduce greenhouse gas emissions but also have significant co-benefits for both human societies and biodiversity.

Approaches
Reforestation
Seagrass restoration
Mangrove restoration and protection
Farmer managed natural regeneration (FMNR)
Community forest management (CFM) and tenure security
Avoided deforestation
Example selection criteria
  • Climate impact: Projects that protect or increase carbon stocks in nature.

  • Catalytic effect: Projects that can be replicated, spread to new communities, or inspire innovative solutions are preferred.

  • Track record: Projects with a strong history of successful implementation outcomes are prioritized.

  • Co-benefits: Projects are prioritized if they benefit marginalized communities, contribute to environmental justice, or help ecosystems beyond carbon storage.

Example project

Plant with Purpose works in rural communities to share knowledge on nature restoration and regenerative agricultural practices. This leads to improved yields, increased food sovereignty, and improved water quality and access.

Plant with Purpose
other projects within the fund
Yama company founders

Durable carbon removal (CDR)

Yama logo
Yama

France

Yama is a pioneering Direct Air Capture company with innovative technology that integrates a scalable, low-grade heat source with electrochemistry. Yama's solution addresses key limitations in existing approaches by enhancing energy efficiency, large scale carbon capture, combined with strategic partnerships, indicates a strong potential for scalability.

Rice farmers in field

Decarbonization

PxD logo
Precision Development (PxD)

India

This project promotes Leaf Color Charts (LCCs) among smallholder rice farmers in India to help farmers optimize nitrogen fertilizer use, thereby reducing their production costs and nitrous oxide emissions for the global community. PxD will collaborate with an implementation partner to distribute 10,000 LCCs with accompanying digital advisory services during this project. This project addresses the critical need for timely and customized fertilizer application to reduce GHG emissions, with the potential for continued scaling through government and other partners and significant long-term emissions reduction.

Bird on flowers image

Nature protection and restoration

Jocotoco Conservation Foundation logo
Jocotoco Conservation Foundation

Ecuador

he "Plant the Forests of Tomorrow" project in Ecuador aims to reforest 400 hectares with 200,000 native trees over 8 years in the Buenaventura Reserve. Jocotoco works on both establishing nature reserves and reforesting degraded landscapes in some of the world's most threatened biodiversity hotspots. Jocotoco has a strong track record of establishing reserves and preventing species extinction, as well as addressing the root causes of deforestation.

See all other projects

Browse all other projects within the fund

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Case studies
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Northzone
At Northzone, they know their climate responsibility goes beyond "neutrality." With Milkywire's help, they support leading climate projects transforming the industry though the Climate Transformation Fund.
Northzone sustainability page
Rain forest
Klarna
Milkywire is proud to be a strategic partner of Klarna's sustainability initiatives since 2021, enabling Klarna to maximise their impact throughout their digital platform.
Klarna case study
Methodology

How we ensure quality and scientific rigor

We have a rigorous selection process for new projects, based on a call for proposals. We vet projects according to our framework evaluating innovation, potential and scalability together with integrity, durability, safety, legal compliance, and measurable impact. Our external advisory group reviews these evaluations, helping us prioritize projects that deliver significant environmental and social benefits while ensuring that our support is both necessary and impactful.

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Register your interest

Get notified when the call for proposals opens

The Climate Transformation Fund is not currently accepting proposals. We will open a call for proposals in December 2024 for projects joining the CTF in 2025. We seek innovative projects focused on nature protection, decarbonization, and carbon dioxide removal. Our mission is to support groundbreaking initiatives that significantly impact the fight against climate change and advance global net-zero emissions.

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Frequently asked questions

Why a portfolio approach?

By supporting the Climate Transformation Fund, companies contribute to a diverse range of solutions needed to combat climate change. This increases the likelihood of reaching global net-zero and reduces investment risk by spreading contributions across various high-impact projects.

How do you find projects?

Annually, we invite interested projects to apply for our Climate Transformation Fund by issuing a call for proposals. We select about 30 projects that best meet our criteria for maximum impact. Our latest call attracted over 1,000 applications, with a selection rate of about 2%.

Why choose this approach over carbon credits?

Choosing Milkywire's curated portfolio offers a diversified, scientifically-backed selection of projects, unlike direct carbon credit purchases which often lack this breadth and strategic alignment. It also mitigates the risk of greenwashing claims, demonstrating a commitment to supporting the most effective climate projects.

Do you sell carbon credits or offsets?

The CTF does not issue carbon credits or claim offsets. Our focus is on long-term impact. This can involve purchasing carbon removals at higher prices today to make them cheaper in the future or supporting projects to protect forests and plant trees. We quantify the impact of contributions in our reporting, but the actual effect of a tonne of carbon avoided or removed varies between solutions.

Why focus on durable carbon removal (CDR)?

Durable carbon removal involves technologies and projects that remove CO₂ from the atmosphere and store it for long periods (hundreds to thousands of years). With over 90% of global GDP committed to net-zero, durable carbon removal will be essential to meet these targets. However, the CDR market is still developing and requires significant funding to meet future demand.

What is a credible internal carbon fee?

A credible carbon fee varies, but one approach is to base it on the cost of durably removing and storing CO₂ from the atmosphere, which is currently several hundred US dollars per tonne. The New Climate Institute suggests 100 euros per tonne as a credible level for corporate climate contributions. This can differ based on company needs. Contact us for help in determining an appropriate carbon fee for your organization. Read more on setting an internal carbon fee.

How do we communicate the impact funded through Milkywire?

Transparency is key. Instead of claiming to offset a specific number of tons, an internal carbon fee allows you to tax your own emissions, providing an incentive to reduce them, and explaining where the funds are spent. For example, you can learn more about how Northzone communicates their impact on the Northzone sustainability page.

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