Key Takeaways:
- HeavyFinance has launched Green Loans to tap into the rapidly growing carbon credit market and enable investors to get returns from the sale of CO2 removal credits generated in European farmland.
- The Green Loans financial product provides high-quality carbon certificates for investors while supporting farmers with the mass adoption of regenerative practices to tackle climate change.
- Regenerative agriculture can remove 1 billion tons of carbon dioxide equivalent per year by 2050, according to a recent report by the Food and Land Use Coalition.
HeavyFinance Launches Green Loans to Generate Carbon Credits in European Agricultural Land
HeavyFinance, a European climate tech investment marketplace for the agricultural industry, has launched Green Loans to tap into the rapidly growing carbon credit market. With the urgent need to take action on climate change and the high demand for the voluntary carbon credit market, Green Loans enables both retail and institutional investors to get returns from the sale of CO2 removal credits generated in European farmland. This new debt instrument is part of HeavyFinance’s aim to remove 1 gigaton of greenhouse gas emissions by 2050.
The Green Loans financial product provides high-quality carbon certificates for investors while supporting farmers with the mass adoption of regenerative practices to tackle climate change. With this financial product, farmers taking a Green Loan do not pay an interest rate, as returns for investors are generated from the sale of CO2 certificates. HeavyFinance estimates to facilitate €7-10 million of debt capital during the first year after the launch of Green Loans.
Regenerative Agriculture and Carbon Farming
Regenerative agriculture is a sustainable approach to farming that aims to reduce the amount of carbon dioxide entering the atmosphere by storing it within the soil, leading to increased yields. This innovative approach is based on sustainable agricultural practices such as no-tillage, strip or minimal cultivation, as well as crop rotation and management of crop residues. According to a recent report by the Food and Land Use Coalition, regenerative agriculture could remove 1 billion tons of carbon dioxide equivalent per year by 2050.
Carbon farming is a part of regenerative agriculture that focuses on the capture and storage of carbon in soils and vegetation. By adopting regenerative practices, farmers can generate carbon credits that can be sold to offset greenhouse gas emissions. This not only provides financial benefits for farmers but also supports the fight against climate change.
The Role of Green Loans in Tackling Climate Change
Green Loans represent a solution to the agriculture sector being labeled the third-largest contributor to greenhouse gas emissions in Europe, according to the quarterly greenhouse gas emissions in the EU report. HeavyFinance’s Green Loans aim to support carbon farming by enabling farmers to adopt regenerative practices and generate carbon credits, which can be sold to investors.
Laimonas Noreika, Founder of HeavyFinance, said, “Green Loans are an exciting new offering, supporting institutional investors and farmers alike to play a central role in tackling climate change.” By facilitating financing to more than 1,300 agricultural ventures in Bulgaria, Latvia, Lithuania, Poland, and Portugal, HeavyFinance has been able to connect investors with European farmers in need of external financing to expand their farms and shift to regenerative agriculture.
Violeta Gevorkjan, Decarbonization and Sustainability expert at HeavyFinance, added, “Benefits for farmers are clear in terms of the results of the triple bottom line becoming environmentally friendly, socially responsible, and economically viable. Improved practices reduce soil erosion and increase resiliency to high temperatures, droughts, and floods.”
Conclusion
HeavyFinance’s Green Loans represent an innovative approach to tackling climate change by supporting carbon farming and regenerative agriculture. With the ability to generate carbon credits and provide financial benefits to farmers, Green Loans have the potential to make a significant impact in the fight against climate change. As HeavyFinance continues to expand and enroll over 150,000 hectares across Europe to generate carbon credits, it is clear that the company is committed to achieving its goal of removing 1 gigaton of greenhouse gas emissions by 2050.
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