- Through the partnership, Key Carbon has the right to invest over €100mn into InSoil’s zero-interest Green Loans, providing vital financing to small and medium-sized farms transitioning to regenerative agricultural practices over the next several years.
- In a royalty agreement, InSoil has received a €3.7mn investment from Key Carbon to scale its operations across one million hectares of European farmland by 2026, enabling the sequestration of over 35mn tonnes of CO2 emissions.
- This milestone marks InSoil’s (formerly HeavyFinance) largest funding to date and is one of Europe’s largest financial commitments to climate-resilient farming practices.
Abatable has supported climate finance company InSoil and financier Key Carbon to enter into a €100mn agreement to expand regenerative agriculture across one million hectares of farmland and provide access to low-carbon financing for farmers across Europe. Key Carbon’s investment in InSoil is expected to enable the sequestration of over 35mn tonnes of greenhouse gas emissions through regenerative practices adopted by more than 3,000 farmers across Europe.
The investment marks InSoil’s (formerly known as HeavyFinance) largest funding to date. It also represents one of the largest financial commitments to regenerative agriculture in Europe tied to the generation of carbon credits, supporting the transition to climate-resilient farming practices and the generation of high-quality carbon removals.
Through the deal Key Carbon has committed €3.7mn to acquire revenue royalties from carbon credits, while also providing €100mn in transition loans through InSoil to accelerate the shift to regenerative agriculture across Europe.
Supporting regenerative farming practices through the carbon market
With agriculture accounting for more than 20% of global emissions and soil seen as a critical carbon sink, the collaboration aims to unlock high-quality, nature-based carbon credits that are scientifically validated and third-party verified in alignment with the EU Carbon Removals Certification Framework (CRCF).
The agreement will finance the expansion of InSoil’s soil carbon programme and provide direct investment through InSoil’s zero-interest Green Loans. These loans support farmers in implementing regenerative farming practices such as reduced tillage by removing the financial barriers to adaptation. InSoil’s private debt arm has already deployed over €80mn in financing to small and medium farmers across Lithuania, Poland, Bulgaria, Latvia, Ukraine, and Portugal, with further expansion expected across the continent.
InSoil’s Measurement, Reporting, and Verification (MRV) framework is deployed to ensure accurate, transparent, and high-integrity carbon credit generation. These approaches include laboratory-grade soil sampling, advanced remote sensing technologies, expert agronomic assessments, and additional data-driven methodologies.
A long-term partnership
Abatable supported the deal by introducing InSoil and Key Carbon as highly suited partners and facilitating the origination and execution of the agreement. This helped build a long-term relationship that is driving significant investment into transformative climate action.
Commenting on the announcement, James Gourlay, Investor Carbon Solutions Manager at Abatable said: ‘We are delighted to have supported this deal by introducing these two key actors in the voluntary carbon market. This partnership unlocks a first-of-its-kind and innovative financing mechanism, and Abatable is proud to have helped facilitate this important outcome for climate, nature and people.’
‘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,’ said Laimonas Noreika, CEO of InSoil. ‘Through this agreement with Key Carbon, we will be able to reach more farmers, accelerate climate-positive outcomes, and deliver the kind of high-integrity credits the carbon market increasingly demands. As institutional interest in nature-based solutions continues to grow, 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.’
Luke Leslie, CEO of Key Carbon, said: ‘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. With its deep agronomic expertise and strong local networks, InSoil is uniquely positioned to deliver meaningful environmental outcomes and ensure the integrity of carbon credit generation. The partnership will also provide Key Carbon with access to millions of hectares of European farmland with the potential to deliver additional biodiversity monitoring.’
Alongside Abatable, the transaction was guided by a consortium of expert advisors including Phillip Lee and Cobalt which provided legal counsel, Soiranen on deal structuring and STEP as financial advisor.
For more information on Abatable’s carbon market investment solutions visit our webpage or contact James Gourlay, Abatable’s Investor Carbon Solutions Manager.
