Agreena partners with IFC to boost bank support for regenerative agriculture
Agreena and the International Finance Corporation (IFC) will collaborate on a partnership to expand access to sustainable finance for farmers transitioning to regenerative agriculture.
The collaboration will equip financial institutions with the tools needed to support farmers and develop innovative financial solutions to scale the shift toward a low-carbon and resilient agricultural system.
Copenhagen, Denmark – 18 September 2024: The International Finance Corporation (IFC), a member of the World Bank Group, and Danish climate fintech, Agreena, have today announced a groundbreaking financial services partnership to advance sustainable farming across Eastern Europe. This first-of-its-kind collaboration aims to expand the regenerative agriculture transition through improved access to finance for farmers, while supporting banks to achieve their green finance goals.
IFC is the largest global development institution focused on the private-sector in emerging markets. Agreena will be working with the institution’s Europe Sustainable Finance Project, which provides advisory services to increase the flow of climate finance towards initiatives and projects across a range of sectors, including agriculture.
The partnership aims to help banks support their agricultural customer portfolio in switching to more sustainable farm operations and unlock bank lending to farmers who can face a ‘finance gap’ in the early years of transitioning to regenerative farming. With many farm businesses operating on thin margins, the demand for new equipment and the risk of short-term production losses can make the move to regenerative agriculture challenging, despite its ability to deliver long-term social, economic, and environmental benefits.
“By partnering with Agreena, IFC is committed to accelerating the transition to regenerative agriculture in Eastern Europe,” said Liliana Pozzo, IFC Sustainable Finance Advisory Services Manager Latin America and the Caribbean and Europe. “This collaboration not only helps farmers reduce their carbon footprint and enhance biodiversity but also equips financial institutions with the tools needed to support farmers during this critical transition period.”
Financial institutions have a unique position to promote and help drive the adoption of regenerative agriculture due to the scale of their lending to farmers across Europe. In parallel, pressure is mounting to reduce so-called 'paper decarbonisation', the act of reducing emissions by reshuffling portfolios. Instead, banks are being asked to provide more evidence of the impact of their green lending, while also doing more to help their clients become more sustainable.
Agreena is already developing solutions for banks who are seeking to build strong sustainable finance offers in the agriculture sector. Drawing on its expertise as the developer of Europe’s largest soil carbon programme, Agreena leverages its farmer interface and advanced Measurement, Reporting, and Verification (MRV) capabilities to assist banks with granular, verified farm-level data, to support eligibility documentation for green finance offers.
"Agreena is extremely excited to embark upon this new strategic alliance with the World Bank's IFC – it is a bold step towards a new era of regenerative agriculture finance," said Frederik Aagaard, Chief Commercial Officer at Agreena. “The agricultural sector is one of the largest contributors to greenhouse emissions but it can also be a leader in the fight against climate change, and banks have a key role to play in unlocking this potential. Our collaboration with IFC will enhance banks’ awareness of regenerative agriculture and soil carbon removals and support them with documentation. We also plan to explore new solutions for the market, such as carbon credits for loan repayment and green bonds,” added Aagaard.
The collaboration underscores the critical role that financial institutions can play in supporting farmers to deliver meaningful climate-nature impact. By transitioning to regenerative agriculture, farmers can reduce their greenhouse gas emissions and remove carbon dioxide from the atmosphere, while also delivering ecosystem services, including improved soil health, greater water retention capacity and enhanced biodiversity.
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Agreena press office: press@agreena.com
Notes to Editors
Regenerative agriculture aims to create resilient agricultural systems through the implementation of practices including cover cropping, reduced tillage, sustainable use of crop residues and use of organic fertilisers.
AgreenaCarbon is Europe’s leading soil carbon programme, supporting more than 1,000 farmers, who are transitioning more than two million hectares of farmland in 19 countries to regenerative farming.
Following an IPCC-aligned rigorous scientific methodology, Agreena’s third-party validated programme quantifies a farm’s greenhouse gas reductions and carbon removals. The company’s advanced Measurement, Reporting and Verification (MRV) approach combines advanced, satellite-driven, remote-sensing technology and on-site field inspections, to enable continuous monitoring of on-field practices while offering best-in-class rigour, accuracy and traceability at scale.
About Agreena
Agreena unlocks the power of soil carbon removals and natural capital to finance the transition to regenerative agriculture. Working closely with partner farmers across 19 European markets, AgreenaCarbon is Europe’s leading soil carbon programme. Agreena’s advanced digital Measurement, Reporting, and Verification (dMRV) technology supports farmers, companies, and governments on the road to net zero.
Visit: www.agreena.com
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilising private capital to create a world free of poverty on a livable planet. For more information.
Visit www.ifc.org