Carbonaires, the London-based carbon asset management company, today announces it has entered into a partnership with Klarna, a leading global payments provider and shopping service, and the biochar innovation business HUSK.
Under the arrangement, Carbonaires are supporting HUSK with the funding of machinery in a state-of-the art biochar production facility in Cambodia. The new plant will generate high-quality carbon credits to be purchased by Klarna as part of their carbon reduction programme. The first phase of this project alone will remove approximately 16,000 tonnes of carbon dioxide from the atmosphere – the equivalent to removing over 9,000 cars from the road – with the biochar then being used to make carbon-based fertilisers to regenerate degraded soils.
Biochar is plant-based charcoal made by heating organic waste materials under a controlled process that leads to carbon being sequestered from the air for centuries, thereby lowering atmospheric carbon dioxide levels. Biochar also has highly beneficial agricultural properties where it can be used to replace synthetic fertilisers, enhance water conservation and boost farmers´ yields.
Carbonaires was founded in 2021 by a group of entrepreneurial investors and ESG ambassadors to finance high-quality, high-integrity carbon reduction projects. Through its proven streaming model, the company provides funding to enterprises that demonstrably reduce atmospheric carbon, in turn helping businesses to strengthen their financial viability. The carbon credits generated through projects are made available for purchase to corporations who have committed to a transparent and verifiable carbon reduction plan. A portion of the carbon credits’ value is given to the project’s workforce. This fairer and more equitable business model is what Carbonaires call Carbon Democratisation.
Klarna is a global shopping platform and payments provider, accelerating commerce for 500,000 retail partners and making it easier and safer for 150 million consumers worldwide to shop and pay for their purchases. The company is active in 45 markets, with over 5,000 employees worldwide. In 2021, Klarna set up the Climate Transformation Fund with Milkywire, through which it actively invests in carbon removal solutions as part of its carbon reduction strategy. Funded by the proceeds of its internal carbon tax, Klarna supports a wide range of climate projects that help to mitigate the negative impacts of the climate crisis.
HUSK, founded by female social entrepreneurs Heloise Buckland and Carol Rius, specialise in the development of innovative carbon-based fertiliser production using biochar made from rice husks – a natural by-product of the rice processing industry. HUSK has developed an innovative circular economy solution for rural communities in emerging markets providing inputs and training on building soil carbon as part of the transition to regenerative agriculture in emerging markets. The products, improve soil quality, increase yields and help communities generate additional revenues.
Michael Spenley, co-founder of Carbonaires, said: “We’re thrilled to be partnering with HUSK and Klarna. This collaboration is a great example of what can be achieved when companies share a vision to tackle an issue as devastating as climate change. In this first project together, Carbonaires are supporting HUSK in deploying their innovative biochar solution in Cambodia, benefiting both the local community and the planet. We look forward to working with HUSK and sustainability-focused companies like Klarna on this and other important carbon reduction projects going forward.”