Climate financing – Paf supports projects in England and Nicaragua

Every year, Paf provides climate financing equivalent to its measured climate impact as part of its environmental work. This year the support goes to two projects – one in England that turns carbon dioxide into building material, and one in Nicaragua that generates renewable energy from geothermal heat.

Paf has a long-term commitment to the environment and a clear goal of reaching Net-Zero 2040. As part of our environmental work, we map and measure our emissions, both within our own operations and across our value chain, where the impact occurs more indirectly through suppliers and partners. We work to reduce Paf's impact on the environment and, at the same time, we want to contribute to projects that work more directly on improvements.

"Climate financing is a way to support the transition on a broader front and to highlight the positive efforts being made around the world. This year we have chosen to support two projects that represent different types of environmental measures," says Daniela Johansson, Deputy CEO & Chief Responsibility Officer.

Company in Leeds captures carbon dioxide

The Leeds Carbon Mineralization project in England turns carbon dioxide emissions into solid building material using Accelerated Carbonation Technology (ACT). With this technology, carbon dioxide can be captured and react with residual material, creating a lightweight building material. By binding CO₂ instead of releasing it into the atmosphere, the facility in Leeds helps reduce the carbon footprint of the construction industry. The project is certified by Puro.earth.

"We provide climate financing for the same amount of carbon dioxide that we measured in our Carbon Accounting Report for 2025. It's exciting to follow how new technical solutions for capturing and reducing carbon dioxide keep developing, we are glad to contribute to projects like these when the opportunity arises," says Ludvig Winberg, Corporate Communication Manager.

Geothermal heat becomes electricity in Nicaragua

In addition to the project in Leeds, Paf also provides climate financing for the San Jacinto Tizate geothermal project in Telica, Nicaragua, which uses geothermal heat to generate renewable electricity. The facility is operated by a Canadian company specialising in renewable energy in Latin America. The project is registered under the UN's Clean Development Mechanism (CDM), and the emission reductions it generates are certified as Certified Emission Reductions (CERs).

"The project is listed on the UN Carbon Offset Platform, where verified climate credits can be cancelled voluntarily. For us, it's important that the projects we support are reviewed and verified, so that we know the climate benefit is real. The fact that we're contributing to both carbon capture and renewable energy this year also shows the range of solutions that are needed," says Ludvig Winberg.

Read more about Paf's environmental work and Net-Zero 2040 goal.