Klarna x Milkywire
IMPACT-FOCUSED CLIMATE ACTION
Klarna’s climate action strategy
Climate change is one of the great challenges of this century. Klarna acknowledges that its business has an impact on the climate and is committed to supporting solutions that help address the climate crisis, both within its own value chain and beyond. At the heart of Klarna’s climate change mitigation strategy are: a) an ambitious target to reach net zero emissions across its value chain by 2040, independently validated by the Science Based Targets initiative, and b) a commitment to take responsibility for those emissions it has not yet reduced by pricing them with an internal carbon fee and using the funds to support the solutions needed to reach global net zero. Klarna is a founding partner of the Climate Transformation Fund, the ‘beyond-offsetting’ charitable fund curated by Milkywire that selects and supports a wide range of projects addressing the climate crisis within the durable carbon removal, nature restoration & protection, and decarbonization sectors. By supporting solutions through the CTF, Klarna’s focus is to fund solutions that deliver catalytic impact and forge a pathway to meet our global climate goals.
Impact made to date
All time contribution
$8.5M
Fund total: $18.7M
Klarna has contributed $8.5M since 2021.
Supported projects
67
Klarna has supported a total of 67 projects in 29 countries.
Durable carbon removal (CDR)
Decarbonisation
Nature protection and restoration
Pricing emissions
Klarna’s internal carbon fee
While Klarna is on its journey to reduce emissions to net zero by 2040, there will be GHG emissions that are yet to be reduced. Klarna is taking responsibility for these emissions and applies a voluntary internal carbon fee to all its annual greenhouse gas (GHG) emissions. The tax rates are differentiated based on the source of emissions to reflect the varying levels of control Klarna has over each emission category and the shared responsibility for Scope 3 emissions across the value chain: - USD 200 per ton of CO₂e for Scope 1 and Scope 2 emissions. - USD 100 per ton of CO₂e for Scope 3 emissions related to business travel (Category 3.6). - USD 10 per ton of CO₂e for all other Scope 3 emissions.
Approach
Supporting climate solutions
Klarna uses the funds generated through its internal carbon fee to finance Beyond Value Chain Mitigation (BVCM) via the Climate Transformation Fund (CTF). In this model, rather than focusing on “offsetting” its own emissions, Klarna uses the funds to finance a portfolio of climate projects focused on maximizing overall climate impact. As suggested by many experts, this approach is a much-needed evolution of the way companies have traditionally financed climate action and Klarna is amongst the first large businesses pioneering it worldwide.
Milkywire's Climate Transformation Fund
Climate Transformation Fund
Milkywire's Climate Transformation Fund, established in 2021, focuses on innovative projects that accelerate progress toward net-zero targets and align with ambitious sustainability leadership goals. Our mission is to achieve maximum long-term CO₂ reduction or removal per dollar spent. We're committed to supporting new technical solutions, influencing climate policy for greater ambition, and scaling up nature-based projects. With 49 projects already backed and 15+ partners on board, we're paving the way for a sustainable future.
Durable carbon removal (CDR)
Decarbonisation 
Nature protection and restorationProjects supported by the fund
Durable carbon removal (CDR)
Inplanet
Brazil
InPlanet operates in Brazil as the first Enhanced Rock Weathering startup solely focused on the tropics. They spread silicate rock powder under ideal soil and climate conditions, promoting rapid weathering and carbon capture. The carbon is stored in soil leachates, waterways, and ocean sediments. Key co-benefits include the restoration of degraded soils, improved food nutrition, and reduced reliance on conventional chemical inputs in agriculture. InPlanet conducts rigorous measurements, from laboratory to field, to assess the net carbon removal effectiveness of rock spreading in various agricultural contexts.
Decarbonisation
Crop Intellect
United Kingdom
Nitrous oxide (N₂O) is one of the most difficult greenhouse gases to mitigate. Today N₂O from agriculture contributes ~2.3 GtCO₂e per year with few mitigation options. Crop Intellect has developed R-Leaf, a novel foliar spray that uses photocatalysis to break down nitrous oxide into inert nitrogen and oxygen directly in the field. This project will undertake the first large-scale, independently verified deployment of R-Leaf. Spanning 5,000 hectares of cereal crops, the trial will be monitored by independent researchers from either the UK Centre for Ecology & Hydrology (UKCEH) or the University of Lincoln. The study aims to generate the first robust field data on atmospheric N₂O removal, assess agronomic co-benefits, and establish a transparent methodology for future crediting under international carbon frameworks. The receiving entity is Crop intellect, a UK-startup, they in turn will fund the independent third-party academic partner as well as other project costs.
Nature protection and restoration
Carbon Justice Standard
Ecuador
The Kawsay Ñampi project, led by the Kichwa People of Sarayaku in the Ecuadorian Amazon, protects 142,500 hectares of intact rainforest through Indigenous governance and modern monitoring tools. The project is developed under the Climate Justice Standard, which ensures that the project channels most funds directly to community priorities while piloting an ethical, non-offset Climate Justice Contribution model. It offers a replicable pathway for Indigenous-led, high-integrity climate and biodiversity solutions.
Latest updates
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Climate solutions
Why funding climate solutions matters
Taking meaningful climate action is essential for addressing the climate crisis. Strategies like internal carbon fees allow businesses to invest in high-quality projects that tackle critical challenges, such as carbon removal, nature restoration, and reforestation, while driving measurable and lasting impact. This approach fosters innovation, accountability, and real progress toward a net-zero future. Milkywire supports companies in achieving effective climate action through its proven Climate Transformation Fund. Aligned with leading frameworks like SBTi and guided by top scientific experts, the fund ensures every contribution supports impactful, science-backed projects. With rigorous quality assurance, transparent reporting, and a focus on maximizing outcomes, Milkywire offers a best-in-class solution for funding meaningful environmental change.
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