Key Carbon, a Vancouver-based private equity firm specializing in climate and biodiversity action, will partner with Lithuania’s InSoil to support regenerative agriculture across Europe, according to a joint statement on Tuesday.

Under the agreement, Key Carbon will invest over $114 million (€100 million) into InSoil’s zero-interest Green Loans, providing vital financing to small and medium-sized farms transitioning to sustainable practices.

In a related royalty agreement, InSoil received a $4.2 million investment from Key Carbon to expand operations across 2.5 million acres (1 million hectares) of European farmland by 2026.

The initiative is expected to sequester more than 35 million tons of atmospheric carbon dioxide (CO2), contributing to the fight against climate change.

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This is InSoil’s largest funding round to date and ranks among the largest climate finance commitments to European agriculture.

InSoil (formerly HeavyFinance) offers zero-interest loans to farmers in exchange for a share of carbon credits.

These credits are generated through verified regenerative practices and sold in the voluntary carbon market (VCM).

Key Carbon’s subsidiary, EU Soil Carbon Corp, will also support InSoil’s expansion, enabling technical and financial assistance to farmers.

The partnership aims to provide high-quality, science-backed, nature-based carbon credits in alignment with the EU Carbon Removals Certification Framework (CRCF).

InSoil’s MRV (Measurement, Reporting, and Verification) platform ensures transparency and accuracy through lab-grade soil sampling, remote sensing, and agronomic expertise.

So far, InSoil has deployed over $91 million in financing to more than 3,000 farmers.

“Our work 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,” said CEO Laimonas Noreika.

“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,” added Luke Leslie, CEO of Key Carbon.

Cobalt and Abatable advised InSoil on the transaction, while Philip Lee and Sorainen acted as legal advisors to Key Carbon.

Source - https://carbonherald.com