Climate Finance | March 18, 2024

HeavyFinance raises €20 million to help farmers regenerate Europe’s agriculture

Lucy Ngige
Guest Author

Lucy Ngige

HeavyFinance offers credit to help farmers and small agri-businesses adopt regenerative practices to improve soil health and sequester carbon. The Lithuania-based crowdfunding platform, which accepts amounts as small as €100, gives institutions and retail investors access to HeavyFinance’s portfolio of farmers and businesses.

Its model is similar to US-based Steward, which provides loans to regenerative and sustainable food businesses. HeavyFinance also links farmers to voluntary carbon markets.

The agri-investment startup has directed €53 million ($57.7 million) through nearly 1,800 loans.

HeavyFinance is looking to dial up lending in Bulgaria, Latvia, Lithuania, Poland and Portugal with a €50 million fund. The European Investment Fund anchored the company’s fund via InvestEU, which aims to mobilize €372 billion for European policy priorities, like regenerative agriculture, by 2027.

“Farmers face unprecedented challenges stemming from climate change, but they are also at the forefront of finding innovative nature-based solutions,” said HeavyFinance’s Laimonas Noreika. 

Green agriculture

Decarbonizing the agriculture sector is key to Europe’s goal of carbon neutrality by 2050. European Investment Fund recently invested in Blue Revolution Fund to support aquaculture companies and marine restoration, and in the Impact Bridge impact fund for Spanish ventures in sustainable agriculture, rural development and gender equality.

Last month, EIF participated in a €335 million “synthetic securitization” on future loans that help Romanian farmers update their farming equipment and energy efficiency.