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What is Milywire?
What is Milkywire and can you share more about its mission?
Robert Höglund - Milkywire is a leading impact platform dedicated to growing financing for high-quality environmental projects while enhancing efficiency and transparency. Milkywire has created the charitable Climate Transformation Fund that supports projects within carbon removal, emission reductions, and nature restoration & protection to help reach global net zero, providing an alternative to offsetting. Launched as a BVCM initiative in 2021, the fund—backed by companies like Spotify, Klarna, and ING Bank—has so far selected over 40 projects across the world.
CDR Challenges
What are some common misconceptions or challenges you've encountered regarding carbon dioxide removal, and how does Milkywire address them?
Robert Höglund - Common misconceptions about carbon dioxide removal (CDR) include the belief that it is a straightforward solution and that all CDR methods are equally effective and scalable. Challenges include ensuring the durability and verifiability of carbon storage, as well as the high costs and early-stage nature of many CDR technologies. Milkywire addresses these challenges by supporting various innovative and early-stage CDR projects, focusing on those with high potential for long-term impact and scalability. We also emphasise the importance of robust measurement, reporting, and verification (MRV) systems to ensure the effectiveness and integrity of carbon removal efforts.
Project Transparency
How does Milkywire ensure transparency in its selection process for projects funded by the Climate Transformation Fund?
Robert Höglund - Milkywire ensures transparency through a structured, multi-tiered selection process. We publish a framework for project selection, detailing requirements and criteria for evaluating proposals. The process includes extensive outreach to encourage relevant organisations to apply, followed by an initial short proposal submission, interviews, and supplementary information requests. Final project selection is based on a comprehensive assessment and scoring against our criteria, with input from an independent advisory group of experts. Additionally, we publish an annual impact report detailing the progress and outcomes of funded projects.
Success Stories
Can you share a success story of a project funded by Milkywire that has yielded unexpected positive environmental or social co-benefits?
Robert Höglund - One notable success story is the project with the Indonesian Conservation Community KKI WARSI, which focuses on reducing deforestation by securing forestry licenses for local communities. This project has not only helped protect over 40,000 hectares of forest, preventing the emission of millions of tonnes of CO₂, but also significantly improved local community engagement and ownership. The project has strengthened community capacity to manage their forests sustainably, contributing to both environmental conservation and the socioeconomic well-being of the local population.
CDR for Climate Action
What role do you see for carbon removal technologies in a comprehensive climate action strategy, and how does the fund prioritise these investments alongside emission reduction projects?
Robert Höglund - Carbon removal technologies are crucial for reaching and maintaining net-zero emissions, especially as emission reductions alone will not suffice to limit global warming to 1.5°C. The Climate Transformation Fund prioritises investments in carbon removal by supporting both the development of new, innovative technologies and the scaling of more mature solutions. We emphasise the catalytic effect of their support, aiming to make these technologies more affordable and widely implemented. Alongside carbon removal, Milkywire also fund emission reduction projects and nature-based solutions, balancing our portfolio to maximise long-term climate impact.
Emerging Technologies
Looking ahead, what emerging technologies or approaches within the climate change mitigation space does Milkywire find particularly promising, and how might the fund support them?
Robert Höglund - Milkywire finds several emerging technologies and approaches including novel ways of doing direct air capture, sustainable biochar production and enhanced rock weathering with exceptional benefits. There are so many promising CDR startups out there right now and we wish we could support even more. By being among the first buyers and supporters, Milkywire helps these technologies advance from prototype stages to commercial viability, enabling the testing and scaling of these methods, reducing costs, and increasing their potential for large-scale deployment.
Into the Future
In Milkywire's view, what are the biggest roadblocks hindering faster progress in achieving global net-zero emissions and gigaton removal by 2030?
Robert Höglund - Number one is the lack of corporate demand, as government-induced demand is not likely to be big by 2030. Other roadblocks include the high costs and technological uncertainties associated with new carbon removal methods, insufficient policy support and regulatory frameworks, and the lack of large-scale project financing for early-stage projects. Additionally, there are challenges in ensuring the durability and verification of carbon storage and addressing these technologies' social and environmental impacts. Milkywire addresses these issues by providing catalytic funding, advocating for supportive policies, and emphasising rigorous MRV systems to ensure the effectiveness and integrity of funded projects.
