In a significant development in climate finance, Vilnius-based InSoil, previously known as HeavyFinance, has secured a €100M partnership with Canada’s Key Carbon. This collaboration aims to propel the adoption of regenerative agriculture across European farmlands. The funding is part of a larger effort to combat climate change by promoting practices that improve soil health and reduce atmospheric carbon. InSoil, founded by Laimonas Noreika in 2021, already has a track record of providing substantial financial support to farmers committed to sustainable agriculture.
Historically, collaborations aimed at reducing agricultural emissions have focused on increasing productivity and efficiency. However, this partnership shifts towards more sustainable farming practices and carbon sequestration. Over the years, Key Carbon has built a reputation for its investment in diverse climate-positive initiatives, including clean cooking solutions and large-scale carbon removal projects. The current collaboration with InSoil signifies a crucial step in prioritizing regenerative agriculture as a viable solution to the ongoing climate crisis.
How Will the €100M Investment Be Utilized?
The multi-year agreement allows Key Carbon to inject €100M into InSoil’s zero-interest Green Loans program, benefiting small and medium-sized farms transitioning to regenerative practices. Through this financial support, InSoil can extend its reach across one million hectares of European farmland by 2026, with the ultimate goal of sequestering over 35 million tonnes of CO2. Key Carbon further solidifies this arrangement with a €3.7M investment in a royalty agreement, ensuring a steady expansion of regenerative practices in Europe.
What is the Role of Carbon Credits in This Initiative?
The focus on carbon credits is integral to the initiative’s success. InSoil’s Green Loans offer zero-interest financing in exchange for a fixed share of carbon credits generated through regenerative farming. These credits are meticulously created and validated under the EU Carbon Removals Certification Framework. Advanced technologies, including laboratory-grade soil sampling and remote sensing, are employed to ensure high accuracy in carbon credit generation.
Key Carbon’s history in climate finance reveals its extensive involvement in carbon credit markets, having financed 25 projects across 15 countries, removing or avoiding significant amounts of carbon, and investing in reforestation. Their collaboration with InSoil marks a targeted effort to produce high-integrity, removal-based solutions, catering to the rising demand for quality carbon credits in compliance with evolving standards.
InSoil CEO, Laimonas Noreika, highlights the importance of this support, stating, “As farmers across Europe face headwinds from climate change and global regulatory dynamics, financial and agronomic support from projects like these are critical to achieving the systemic shifts that achieve real impact in carbon sequestration and a more resilient food system that doesn’t leave the stewards of our lands in the dust.”
Luke Leslie, CEO of Key Carbon, adds, “Corporate appetite for carbon credits is increasingly shifting towards high-integrity, removal-based and localised solutions to meet the evolving compliance standards. Our partnership with InSoil will provide increased access to funding for farmers, enabling the transition to regenerative agriculture and growing Key Carbon’s supply of high-quality carbon credits.”
InSoil’s initiative extends beyond just financial backing. It encompasses expert agrotechnical guidance and cutting-edge soil and emissions monitoring technologies to assist farmers. This aims to improve biodiversity, soil health, and water cycles, enhancing resilience to climate challenges. Meanwhile, Key Carbon’s EU Soil Carbon Corp subsidiary will finance further expansion, offering vital support to farmers embracing regenerative agriculture.
This partnership represents a substantial commitment towards addressing climate challenges through agriculture. By harnessing financial incentives and technological advancements, InSoil and Key Carbon are paving the way for large-scale adoption of regenerative practices. The collaboration not only promises environmental benefits but also serves as a blueprint for future endeavors in climate-resilient agriculture.
