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Klarna signs up with Sligo firm Silicate for carbon credits scheme

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The Klarna HQ in Stockholm

The Klarna HQ in Stockholm

The Klarna HQ in Stockholm

Buy now pay later app Klarna is to partner with Sligo startup Silicate to help bolster its green credentials.

It is the first investment of its kind in Ireland by the Swedish fintech, which will hive off €240,000 from its internal carbon tax to help scale Silicate.

In exchange, the Irish start-up will provide Klarna with credits to offset its carbon footprint.

Silicate processes waste concrete into a material that can be spread on fields to help farmers lower soil acidity while trapping and storing carbon from the atmosphere for up to 100,000 years.

Silicate co-founder Maurice Bryson said the money would make an “an immeasurable difference”, allowing the company to launch its first commercial scale pilot in Wexford. It will take around year for the results to come through.

“We want to use this money, this revenue, from Klarna to show that it works on a kind of larger scale,” he told the Irish Independent.

Klarna introduced an internal charge on its own and suppliers’ emissions in 2021, raising just under $1.67m (€1.63m) so far.

It has ploughed the money into several decarbonisation projects, including Silicate, as it works to halve its carbon emissions by 2030 and become climate neutral by 2040.

The announcement comes after a Wall Street Journal report said claimed the company’s valuation has fallen around seven-fold since last year. Klarna said it did not comment on valuation.

Salah Said, Klarna’s head of sustainability, said its increased climate focus has been made possible by buoyant growth.

“For Klarna, especially in the last two to three years, sustainability has just become a priority, and it could become a priority because the company was growing so well.”

In a trading update in May, Klarna said it would lay off 10pc of its workforce due to the more “volatile” economy.

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