Klarna Rejects Carbon Offsets With Fresh $1.25m Fund for Environmental Moonshots

Klarna, the AI-powered global payments network and commerce network, today announced $1.25M in fresh funding for 18 ‘moonshot’ climate projects for 2025 in a further rejection of the traditional ‘carbon offsetting’ model.

The latest funding takes Klarna’s total contribution in climate projects to $8.4 million over five years. The fund now supports over 60 initiatives across 27 countries, from cutting-edge carbon removal to community-led forest protection efforts. Klarna has cut its own greenhouse gas emissions by 43% since 2022, putting the company ahead of schedule to meet its 2040 net-zero target.

Klarna launched its Climate Transformation Fund in 2021 to take a different approach to fighting climate change. Instead of buying traditional carbon offsets, Klarna puts a price on the emissions it creates and invests that money into real solutions. From scientists developing new ways to extract carbon from the air, to indigenous communities protecting rainforests, Klarna is helping fund projects that often get overlooked but make a real difference.

“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,” said Alexander Farsan, Klarna’s Head of Climate and Environment. “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.”

Among the 18 new projects funded in 2025 are:

• BluShift – capturing CO2 from seawater in the US

• Carbonsate – storing carbon from invasive bush species underground in Namibia

• Kairos Carbon – capturing carbon from wet organic wastes in the UK

• Releaf Earth – community-based biochar in Nigeria

Later this year, Klarna will also fund a new selection of projects beyond durable carbon removal, focusing on decarbonisation as well as nature protection and restoration under the CTF.

As in previous years, Klarna is supporting a mix of early-stage and scalable climate solutions—backing scientists, entrepreneurs, and local leaders building a more resilient and low-carbon future.

A full list of organisations supported in 2025 is available here.