Agreena Wraps Second Carbon Farming Harvest Year and Annual Payout to Farmers
Farmer participation grew 4x for HY 2022 while increased farmland enrollment by existing members accounted for 20% of Agreena’s overall portfolio growth
(14 June 2023) Copenhagen, Denmark – Agtech company Agreena, whose soil carbon platform is the largest in Europe operating in 16 countries and developed to help farmers finance their transition to regenerative practices, today announced the results of its second harvest year (HY) and second annual early payout to participating European farmers. The number of hectares enrolled grew 10X over the previous year and farmer participation increased 4X. Agreena is paying the largest incentives to farmers under a soil carbon scheme to-date at €32 to €36 per anticipated carbon certificate generated depending on region, an increase of up to 45% from last year. The company is a pioneer in creating nature-based soil carbon removals. The associated certificates will soon be available on the market for companies that want to participate in the transition of the world’s farmers to practices that help address climate change, biodiversity loss and the future of food security.
While carbon sequestration in agriculture has been identified as one of the top solutions to scale climate action because of its accessibility and the immediate impact it can have, the primary hurdle to adoption is the high upfront costs for farmers. By leveraging the voluntary carbon market (VCM) to convert climate-friendly farming efforts into high-quality carbon certificates, Agreena is driving a new revenue stream to the farmer. Farmers are seeing the benefit too. Twenty percent of the year-on-year hectare growth in Agreena’s portfolio came from member farmers adding more land to the program.
“Agreena is introducing a new category of carbon certificates into the market and it will take time to build and scale, but farmers cannot wait – they need a reliable and liquid payment to help cover their transition efforts,” said Simon Haldrup, CEO of Agreena. “That is why Agreena takes a calculated risk and pays farmers each harvest year. Still, carbon certificates are just one part of the solution and a mix of incentives is needed to rapidly transition the world’s farmers to regenerative practices.”
Farmers and the companies that rely on carbon certificates for their ESG and sustainability efforts are on different timelines. Sales of credits can take a year or longer to occur after the impact has been certified. Agreena’s early payout option for farmers bridges the gap between the two. Farmers enrolled in Agreena’s program get to decide how they’d like to use the certificates that they generate, and one of those options is to be paid soon after the harvest year ends to help cover their upfront costs. The early payout is based on market prices at the time. Growth of the Voluntary Carbon Market and pricing for high-quality carbon certificates continue to grow, any upside when Agreena’s certificates are sold is shared with the farmer.
Agreena’s carbon certificates are the result of farmers taking measures to sequester additional carbon from the atmosphere within their soils and at the same time reduce their own emissions through practices like no till. The company has developed a highly credible programme that is in alignment with the latest IPCC science and the recognised principles of the VCM, and built relationships with agricultural partners and farmers across Europe.
More recently Agreena has developed its corporate unit that oversees certificate sales, and MRV and risk solutions. Agreena works with certificate buyers to tailor, structure and scale portfolios from across the company’s inventory, modelled after assets already sold and traded in traditional financial markets.
“Our first vintage of high quality carbon certificates originates from farmers in Central Europe and has just been made available for a limited quantity presale,” said Frederik Aagaard, Agreena’s Director of Carbon Markets. “We’re delighted to be able to facilitate the participation of companies in helping finance this journey for farmers.”
The deadline for enrolling in Agreena’s 2023 programme is quickly approaching. Farmers have until June 30 to enter this year’s harvest, and can calculate their earning potential and apply by completing this form on Agreena’s website. More information about the programme and how it works can be found here.
Agreena anticipates that as the VCM continues to grow and evolve, the market will see continued developments related to certification and new standards in the space. Agreena’s portfolio of GHG reduction and carbon removal certificates are accredited to the ISO 14064-2 standard and are currently undergoing Verra VCS certification. The outcome is anticipated before the end of the year.
About Agreena
Agreena unlocks the power of soil carbon removals and natural capital to finance the transition to regenerative agriculture. Working in close collaboration with partner farmers across 16 European markets and growing, AgreenaCarbon is Europe’s leading soil carbon platform. Combined with market-leading satellite monitoring technologies, Agreena’s solutions can support farmers, companies, and governments on the road to net zero.
####
Media Contact:
Nicole Shore
External Communications Manager
nicole.shore@agreena.com