Inaugurated in 2021, the philanthropic fund allows businesses to invest in significant climate solutions. By the end of 2024, Klarna will have given $7 million to climate projects and will have supported more than 45 organizations who are addressing the issue.

The annual contribution amount is determined by Klarna by imposing a "carbon tax" on its total greenhouse gas (GHG) emissions. To demonstrate carbon neutrality, Klarna invests this money in impact-focused climate solutions rather than carbon offsets. This helps to lessen the adverse effects of the climate issue. Starting in 2024, Klarna will double the cost of its carbon tax to $200 per ton of CO2e for scope 1 and scope 2 emissions as part of its ongoing commitment to best practices in climate action.

"We continue to innovate in our funding models and have doubled the topline rate of our internal carbon tax," stated Alexander Farsan, Head of Climate and Environment at Klarna. Klarna has invested $7 million in impact-focused projects since 2021 that could have otherwise slipped between the cracks in the voluntary carbon market. We are thrilled to provide money in the coming year to 13 new global pioneers in carbon removal.

Today, at the Innovation Zero Conference in London, 13 start-ups showcasing a variety of innovative and promising methods to eliminate CO2 from the environment were unveiled. Among the companies are:

By modifying their alkalinity, US start-up Aquarry is repurposing flooded mining operations for carbon capture.
 

Ucaneo is a German firm that uses electrochemistry and solvents with biocatalytic qualities to extract carbon from the atmosphere.

A Kenya-based group called BIOSORRA uses a community-led method to turn crop waste into biochar and permanently store CO2 in the soil, enabling sustainable agriculture in the Global South.

One of the first businesses globally, Klarna has adopted a climate strategy in line with the Science Based Targets initiative's "Beyond Value Chain Mitigation" guidelines. These guidelines offer a framework that enables businesses to finance climate solutions in a credible manner while also lowering their own greenhouse gas emissions. In order to fund climate solutions, Klarna must first cut its own total emissions by 25% by the year 2023.