H&M Group, Stripe and Shopify announced last week, that the companies are spending $7 million on carbon removal from new startups.
The deal was facilitated by Frontier, a public benefit company owned by the payment processing company Stripe. Frontier was launched back in 2022 to accelerate the development of carbon removal technologies.
H&M, Stripe and Shopify are three of the member companies of Frontier. Together, the three companies spent $7 million on carbon removal purchases from 12 startups.
Frontier facilitates carbon removal purchases for its member companies using different techniques. These includes pre-purchase agreements and offtake agreements. Pre-purchase agreements are usually smaller purchases, where payment is made up front. The goal with the project is to support early stage carbon removal companies.
The $7 million announced last week are pre-purchase agreements. The expected amount of carbon to be removed ranges from 58 tons to 1,666 tons, depending on the company.
“We have the pre-purchase program to support the early stage companies,” Joanna Klitzke from Frontier told CNBC.
“For Frontier, the idea of carbon removal is not isolated from a primary climate goal,” Klitzke added.