Climate Transformation Fund offers access to corporate negative emissions portfolios

Climate Transformation Fund

The Climate Transformation Fund now allows access to corporate negative emissions portfolios via a partnership with Ceezer.

Climate Transformation Fund is a charitable fund that supports pioneering projects needed to reach global net zero and with the new partnership corporations will be able to directly make the CTF part of their existing emission reduction portfolio to foster climate action beyond traditional offset credits.

With more severe warnings for corporates to take effective action against climate change, the need for reliable negative emission technologies and strategies is ever more critical. Moreover, as global emissions are still rising, corporates are increasingly asked to deliver climate action ahead of their internal decarbonisation pathway. The message was recently reinforced by the IPCC and the science-based target initiative (SBTI), a framework for companies to set globally aligned climate targets.

So far, most corporates have engaged with the traditional voluntary carbon market to accelerate decarbonisation outside their supply chain. The voluntary carbon market allows trading external reductions and removals of CO2 equivalents, e.g., from forest restoration or technical removal like direct air capture. However a lack of trust in the market and continuous quality issues have made it difficult to make the right investment decisions. Only as more data becomes available can optimized strategies be developed.

As a response, pioneering companies have started setting up their own funds and investment vehicles to directly accelerate the transformation towards a net-zero future beyond the credit markets. For example, the impact platform Milkywire has set up the Climate Transformation Fund that supports a portfolio of holistic climate action initiatives designed to help reach global net zero. The donation fund includes projects within permanent carbon removal, nature protection and climate policy. Swedish payment leader Klarna partnered with Milkywire being the first company to support the CTF, using funds generated from an internal carbon fee. However, setting up such a fund has proven hard to replicate for other corporates due to the high capacity and knowledge requirements.

Corporates can now seamlessly contribute to the Climate Transformation Fund much like they would invest in traditional avoidance and removal credits, from the Ceezer portfolio planner. This opens up an entirely new category of climate mitigation finance to corporate buyers on the platform and fundamentally facilitates holistic tracking and reporting of climate impact. Milkywire and Ceezer will work with new and existing customers to incorporate contributions into long-term mitigation portfolios of corporates – as a key contribution mechanism to corporate climate change mitigation.

“We are excited to partner with Milkywire – a true pioneer in corporate climate action. Long-term climate mitigation portfolios will require holistic contribution models like the Climate Transformation Fund in addition to classical avoidance and removal credits. Making it even easier for organizations to contribute is key to our mission”, said Magnus Drewelies, ceo of Ceezer.

“Pioneering companies should take an impact-first approach and look at how they best can help reaching global net zero with their climate contributions rather than just compensating for their own emissions. With the fund we open a simple possibility for this,” said Robert Höglund, climate advisor and manager of the Climate Transformation Fund.

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