By Gerelyn Terzo, Global AgInvesting Media
A new cross-border partnership is poised to advance regenerative agriculture practices throughout European farming operations. InSoil, a Vilnius, Lithuania-domiciled climate finance company specializing in soil health, and Vancouver-based Key Carbon, a financier in the voluntary carbon market, have partnered in a multi-year tie up. Their mission is to champion transitions to regenerative ag across a massive 1 million hectares (2.5 million acres) of European farmland. The deal paves the way for Key Carbon to invest up to €100 million (US$115 million) in InSoil’s innovative financing platform designed for small and medium-sized farms pivoting to regenerative ag practices in the coming years.
InSoil Founder Laimonas Noreika stated on LinkedIn, “Five years into the InSoil journey, and I couldn’t be more proud than I am today. €100M committed alongside Key Carbon to support the transition to regenerative agriculture across Europe. A big deal with even bigger impact. With our Key Carbon partnership, we can accelerate climate-positive outcomes throughout Europe, and deliver the kind of high-integrity credits the carbon market increasingly demands.”
Noreika also pointed to rising demand from institutional investors for nature-based solutions, emphasizing that InSoil’s collaboration with Key Carbon “will represent a model for blending sustainable finance with climate impact, and turning soil into both a climate solution and a revenue stream for European farmers.”
This collaboration signifies InSoil’s most substantial funding achievement to date, marking one of Europe’s most influential financial commitments toward climate-resilient agricultural methods. Key Carbon’s investment will be directed into InSoil’s Green Loans financing model. Farmers overseeing small and medium-sized operations who are looking to integrate regenerative ag practices can gain access to attractive zero-interest loans. In exchange for this debt financing, the farmers agree to share a set portion of the carbon credits generated from their land.
Beyond this direct lending facility, the partnership extends to a €3.7 million (US$4.26 million) investment from Key Carbon through a royalty agreement, crafted to help InSoil achieve greater operational scale. This capital injection is designed to expand InSoil’s reach across that impressive 1 million hectares (2.5 million acres) of European farmland by 2026.
The ambition is to facilitate the sequestration of more than 35 million tons of atmospheric carbon dioxide emissions. Key Carbon’s subsidiary, EU Soil Carbon Corp, will bankroll the expansion of InSoil’s carbon farming division, ensuring farmers receive the necessary technical and financial backing to successfully adopt more sustainable agricultural practices.
As farmers transition to regenerative agriculture practices, they’re adopting methods designed to improve the health of their land. What this really means is focusing on ways to increase biodiversity, build healthier soil and improve how water moves through the farm. These practices lead to more carbon being pulled from the atmosphere and stored in the ground. Plus, they make farmland much tougher against extreme weather events.
Traditional farming practices are said to be responsible for over 20 percent of worldwide emissions. Meanwhile, agricultural soil holds the key to unlocking a powerful carbon sink, capable of capturing and storing carbon rather than letting it escape into the atmosphere. Through strategic partnership and capital infusion, farmers are expected to become empowered to produce high-quality nature-based carbon credits that meet stringent industry standards.
While InSoil’s private debt arm has so far deployed over €80 million (US$92 million) in financing to more than 3,000 farmers, this fresh infusion of capital from Key Carbon will achieve even greater impact. When put to work, this capital infusion holds the potential to significantly accelerate European farmers’ capacity to revitalize their lands, unlock diverse new revenue streams through carbon credit generation and establish more productive and profitable agricultural operations better equipped to deliver food security to the world.
Key Carbon CEO Luke Leslie commented, “Corporate appetite for carbon credits is increasingly shifting towards high-integrity, removal-based and localized 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.”
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