The co-founder of pre-worn garments market Vinted, Mantas Mikuckas (pictured), is funding €1m (£864,000)-worth of ‘inexperienced loans’ to farmers by way of HeavyFinance.
Debt capital can be deployed to small- and medium-sized farms via the peer-to-peer lending platform, to assist the inexperienced transformation of agriculture.
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Lithuania-based HeavyFinance launched its inexperienced loans earlier this yr, enabling farmers to earn carbon credit primarily based on their emissions, which may be offered to merchants or different corporations.
Traders earn returns from the mortgage itself and the sale worth of the carbon credit score.
The agricultural trade accounts for 22 per cent of whole CO2 emissions, so HeavyFinance is aiming to encourage a shift to regenerative farming practices.
“We’re thrilled about this funding as a result of each HeavyFinance and Mantas share an identical mantra, specializing in making a win-win state of affairs for our clients and the planet,” mentioned Laimonas Noreika, chief government and co-founder of HeavyFinance.
“As we purpose to satisfy the Paris Settlement targets and enhance the UN SDGs initiative, it’s very important for companies to assist each other and set a worldwide instance.”
Mikuckas added: “Realizing how a lot effort and perseverance is required to minimise carbon emissions in trend, I like how corporations like HeavyFinance are championing sustainability concepts in different sectors. The pressing want for decarbonisation possesses an enormous alternative for native communities, companies and traders.”
HeavyFinance closed a €3m fundraising spherical in March to assist develop its inexperienced mortgage providing.
Darius Verseckas, co-founder and chief advertising and marketing officer of HeavyFinance, revealed to Various Credit score Investor that the platform is concentrating on greater than €5m of inexperienced loans by the top of 2023.
The platform has offered finance for greater than 1,300 agricultural ventures in Bulgaria, Latvia, Lithuania, Poland and Portugal.