Launched in 2021, the Climate Transformation Fund (CTF) is a premier solution for companies committed to going beyond emission reductions. This portfolio of high-impact, innovative projects is designed to accelerate global net-zero goals. Aligned with SBTi’s Corporate Net-Zero Standard, the CTF aims to maximize long-term CO₂ reduction or removal per dollar spent. It focuses on innovative CDR technologies, effective nature restoration, and leveraging policy to drive large-scale decarbonization. These efforts are supported by three critical pillars:
Durable carbon removal
Decarbonization
Protecting and restoring nature
Leading frameworks like SBTi, WWF/BCG, and Gold Standard/Milkywire endorse a four-step approach to credible climate action. Responsible companies go beyond emission reductions and implement an internal carbon fee to support climate projects beyond their own value chains. By funding these external climate projects, companies can drive innovation and internalize environmental costs in order to reach global net-zero.
Measure your climate footprint, including Scope 1, 2, and 3 emissions. Align with Science-Based Targets (SBT) to reduce and mitigate CO₂ intensity.
Set an internal carbon fee to fund high-impact projects. Read our guide to learn how.
The CTF helps companies support carbon removal, decarbonization, and nature restoration projects to reach global net-zero.
Communicate your contributions and impact to stakeholders, showcasing your commitment to climate-positive goals.
Total contributions to date since the fund was created in 2021.
Total number of consumers engaged. Through our solutions, companies can engage thousands of consumers for the CTF.
Total projects supported since 2021. The fund currently supports 26 projects operating in 21 countries across 6 continents.
The Climate Transformation Fund encompasses a wide array of projects, each addressing different themes and approaches. We focus on three main pillars, which support the portfolio's overall framework. Within each pillar, various projects pursue similar goals through different methods.
There is a need to support efforts that can reduce emissions. Change is not happening fast enough on its own. A high-impact way of accelerating emission reductions is by supporting effective organizations influencing decision-makers to implement more ambitious climate policies. Another way is to support innovation in new fossil-free energy solutions in cases where market forces are not providing the necessary funds.
Co-benefits: Projects that benefit marginalized communities, provide social co-benefits, or aid ecosystems beyond carbon storage are prioritized.
Climate impact: Projects are assessed on their potential direct or indirect effect on avoided emissions.
High additionality: Projects unlikely to occur without support are prioritized, avoiding those similar to already funded initiatives.
Catalytic effect: Projects are evaluated for their potential to scale and create impact beyond their immediate scope, especially as pioneering solutions.
This initiative introduces Electric Three-Wheelers (E3Ws) in Pakistan, replacing traditional three-wheelers with E3Ws with swappable batteries. The project implements solar- and biogas-powered battery swapping stations in peri-urban agricultural areas. Using the energy efficiency of E3Ws the project demonstrates a scalable model for sustainable mobility in Pakistan.
CDR is one of the most crucial solutions to reach and maintain net-zero emissions and limit global warming. To counterbalance fossil emissions from the long carbon cycle, the carbon removed needs to be stored durably. While solutions for durably removing carbon are still nascent, pre-purchasing carbon removal from startups can help kickstart the sector, making it an affordable and climate-relevant solution in the future. When credits or certificates are bought, they will be retired, meaning they cannot be resold and will not be counted as financial instruments.
High additionality: Projects are evaluated on their ability to remove tonnes that wouldn't occur without funding.
Potential: Projects are assessed for their potential to become a significant solution to the climate crisis.
Catalytic effect: Projects are prioritized if donations or purchases lead to greater growth of the method beyond just the purchased tonnes.
Co-benefits: Projects are given higher priority if they benefit people in poverty or help ecosystems beyond carbon storage.
PyroCCS pioneers sustainable industrial biochar carbon removal in the Global South, deploying its own low-cost, robust, pyrolysis systems powered by renewable energy and backed by a digital measurement and reporting solution. These plants efficiently convert invasive acacia bushes in Namibia, a significant threat to the savanna ecosystem, into high-quality biochar, while providing critical employment in regions with high youth unemployment rates. PyroCCS's scalable technology, which they are also offering as a solution to other project developers, not only captures carbon but also supports local agricultural and environmental recovery as well as food security.
Protecting and restoring nature is of paramount importance for addressing climate change. Deforestation and forest degradation result in substantial carbon emissions as forests are destroyed. Preserving the carbon stored in existing ecosystems and restoring carbon to areas that have lost it are critical steps in mitigating climate change. These actions not only help reduce greenhouse gas emissions but also have significant co-benefits for both human societies and biodiversity.
Climate impact: Projects that protect or increase carbon stocks in nature.
Catalytic effect: Projects that can be replicated, spread to new communities, or inspire innovative solutions are preferred.
Track record: Projects with a strong history of successful implementation outcomes are prioritized.
Co-benefits: Projects are prioritized if they benefit marginalized communities, contribute to environmental justice, or help ecosystems beyond carbon storage.
This project focuses on large-scale seagrass ecosystem restoration in Western Australia using robotic technology. Ulysses is working in collaboration with the University of Western Australia. The group aims to restore thousands of hectares of seagrass meadows, which can store large amounts of carbon annually. The project develops innovative robotic technology for seed collection, planting, and monitoring. Ulysses, in partnership with UWA, provides a novel, scalable method with significant co-benefits for carbon sequestration, biodiversity, and coastal ecosystems.
We collaborate with a broad network of experts and maintain a robust portfolio management system to ensure high quality and scientific rigor. The CTF is overseen by two main portfolio managers who work closely with an external advisory group.
The Climate Transformation Fund is not currently accepting proposals. We will open a call for proposals in December 2024 for projects joining the CTF in 2025. We seek innovative projects focused on nature protection, decarbonization, and carbon dioxide removal. Our mission is to support groundbreaking initiatives that significantly impact the fight against climate change and advance global net-zero emissions.
By supporting the Climate Transformation Fund, companies contribute to a diverse range of solutions needed to combat climate change. This increases the likelihood of reaching global net-zero and reduces investment risk by spreading contributions across various high-impact projects.
Annually, we invite interested projects to apply for our Climate Transformation Fund by issuing a call for proposals. We select about 30 projects that best meet our criteria for maximum impact. Our latest call attracted over 1,000 applications, with a selection rate of about 2%.
Choosing Milkywire's curated portfolio offers a diversified, scientifically-backed selection of projects, unlike direct carbon credit purchases which often lack this breadth and strategic alignment. It also mitigates the risk of greenwashing claims, demonstrating a commitment to supporting the most effective climate projects.
The CTF does not issue carbon credits or claim offsets. Our focus is on long-term impact. This can involve purchasing carbon removals at higher prices today to make them cheaper in the future or supporting projects to protect forests and plant trees. We quantify the impact of contributions in our reporting, but the actual effect of a tonne of carbon avoided or removed varies between solutions.
Durable carbon removal involves technologies and projects that remove CO₂ from the atmosphere and store it for long periods (hundreds to thousands of years). With over 90% of global GDP committed to net-zero, durable carbon removal will be essential to meet these targets. However, the CDR market is still developing and requires significant funding to meet future demand.
A credible carbon fee varies, but one approach is to base it on the cost of durably removing and storing CO₂ from the atmosphere, which is currently several hundred US dollars per tonne. The New Climate Institute suggests 100 euros per tonne as a credible level for corporate climate contributions. This can differ based on company needs. Contact us for help in determining an appropriate carbon fee for your organization. Read more on setting an internal carbon fee here.
Transparency is key. Instead of claiming to offset a specific number of tons, an internal carbon fee allows you to tax your own emissions, providing an incentive to reduce them, and explaining where the funds are spent. For example, read more on how Northzone communicates their impact here.
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