Klarna backs bold climate tech with $1.25m green fund

June 26, 2025

Klarna, the AI-driven global payments and commerce platform, has announced a fresh $1.25m investment into 18 high-impact climate projects set for 2025, reaffirming its stance against traditional carbon offsetting.

The new wave of funding brings Klarna’s total contribution to climate-focused initiatives to $8.4m since 2021.

The company’s Climate Transformation Fund now supports over 60 climate interventions across 27 countries. These range from advanced carbon removal technologies to grassroots forest preservation efforts.

Klarna’s direct environmental efforts have also shown tangible results, with the firm reducing its greenhouse gas emissions by 43% since 2022—placing it ahead of schedule to achieve its 2040 net-zero target.

Unlike conventional carbon offset strategies, Klarna’s approach prices its internal emissions and redirects those funds into supporting pioneering solutions that actively address the climate crisis. The fund was established to back underrepresented yet transformative projects—often overlooked by mainstream climate finance.

Klarna head of climate and environment Alexander Farsan said, “When we set out to reduce our own emissions, we realised we could have an even bigger impact by also helping others to develop innovative climate solutions.

“We need big ideas, moonshots to solve the climate crisis, that’s why we’re backing people with bold visions that don’t fit the typical mold for climate finance.”

The 18 new projects include several unique approaches to carbon removal and ecosystem protection. These include BluShift in the US, which captures carbon from seawater; Namibia-based Carbonsate, which stores carbon from invasive plants underground; UK-based Kairos Carbon, which captures emissions from wet organic waste; and Releaf Earth in Nigeria, which creates community-driven biochar initiatives.

Klarna plans to expand its support later in the year with a new set of projects that will address broader areas beyond durable carbon removal. These will include decarbonisation technologies and nature-focused efforts, such as habitat restoration and ecosystem resilience building.