Mantas Mikuckas, co-founder of pre-loved clothes marketplace Vinted, invests 1M Eur to support the green transformation of agriculture, said HeavyFinance in a statement.
“Knowing how much effort and perseverance is needed to minimise carbon emissions in fashion,” said Mantas Mikuckas in the statement.
“I admire how companies like HeavyFinance are championing sustainability ideas in other sectors. The urgent need for decarbonisation possesses a huge opportunity for local communities, businesses and investors,” added Mikuckas.
According to the company, debt capital will be deployed to small and medium sized farms through climate tech.
Agriculture is one of the main sources of global greenhouse gases, accounting for approximately 22% of total CO2 emissions.
HeavyFinance aims to transform this sector by providing Green Loans for the shift to regenerative farming practices. These loans act as a debt instrument that enables both retail and institutional investors to tap into a rapidly growing carbon credit market. Returns for investors are generated from the sale of CO2 certificates generated on the farm, as farmers taking a Green Loan do not pay an interest rate.
The company is set to generate 250,000 carbon credits by the end of 2024 which will make it one of the largest carbon credit producers in Europe. It has set itself a target of removing 1 gigaton of CO2emissions by 2050.
“As we aim to meet the Paris Agreement targets and boost the UN SDGs initiative, it’s vital for businesses to support one another and set a global example,” said Laimonas Noreika, CEO and co-founder of HeavyFinance.
