The European Funding Fund (EIF) has backed a €50m (£42.69m) credit score fund from HeavyFinance to assist small- and medium-sized agricultural companies throughout Europe.
The EIF has dedicated €20m to the non-public credit score fund, supported by InvestEU – a programme designed to mobilise at the very least €372bn for European coverage priorities by 2027.
HeavyFinance stated that the brand new fund will assist on-farm decarbonisation and greener farming practices in 5 European international locations – Bulgaria, Latvia, Lithuania, Poland and Portugal.
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“Farmers are going through unprecedented challenges as a result of local weather change, however they’re additionally on the forefront of discovering revolutionary nature-based options,” stated HeavyFinance’s chief government and founder Laimonas Noreika.
“This fund represents a vital step in HeavyFinance’s dedication to eliminating one gigaton of carbon dioxide from the ambiance by 2050.”
The fund will present mid-term debt capital for small and medium-sized agricultural firms to assist them of their efforts to cut back their carbon footprint. This would possibly embody the introduction of no-till farming, enhancing soil well being, and utilizing fewer artificial fertilisers.
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“HeavyFinance is empowering European farmers to domesticate a extra sustainable future,” stated the EIF’s chief government Marjut Falkstedt.
“With the assist of the EIF and InvestEU, we’re nurturing the expansion of regenerative agriculture, contributing to decarbonisation, unlocking the potential of our land and fostering a extra resilient planet.”
Because it was established in 2020, HeavyFinance has taken greater than 10,000 soil samples to assist measure carbon storage on farmland. The peer-to-peer lender has already enabled greater than €50m in agricultural loans to 1,700 farmers to assist them promote sustainable practices, modernise tools and improve working capital in agriculture.
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