Carbon asset management company Carbonaires has partnered with global payments provider Klarna as well as biochar innovation business HUSK to fund a biochar production facility in Cambodia.
Carbonaires is funding the machinery in the state-of-the-art facility, which will generate high-quality carbon credits for purchase by Klarna as part of its carbon reduction programme.
The first phase of the project will alone remove approximately 16,000 tonnes of carbon dioxide from the atmosphere. The partners also plan to use the biochar to make carbon-based fertilisers for regenerating degraded soils.
Biochar is a plant-based charcoal made by heating organic waste materials under a controlled process that sequesters carbon from the air for centuries, thereby lowering atmospheric carbon dioxide levels. Biochar also has highly beneficial agricultural properties, where it can replace synthetic fertilisers, enhance water conservation, and boost farmers’ yields.
A group of entrepreneurial investors and ESG ambassadors founded Carbonaires in 2021 to finance high-quality, high-integrity carbon reduction projects. Through its streaming model, the company provides funding to enterprises that demonstrably reduce atmospheric carbon, in turn helping businesses to strengthen their financial viability.
Focus on carbon
Carbonaires makes the carbon credits generated through projects available for purchase to corporations committed to a transparent and verifiable carbon reduction plan. Additionally, the project’s workforce receives a portion of the carbon credits’ value. Carbonaires refers to this business model as Carbon Democratisation.
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 also supports a 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, specialises in the development of innovative carbon-based fertiliser production using biochar made from rice husks, a natural by-product of the rice processing industry.
It 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.”