InSoil and Key Carbon have announced a landmark €100 million partnership aimed at accelerating regenerative agriculture and carbon credit generation across Europe. The agreement will support the transition of conventional farming practices to regenerative methods over one million hectares of farmland, mainly in key grain-producing regions such as Lithuania, Poland, Ukraine, Germany, Spain, and France.
The investment provides Key Carbon with the right of first investment in InSoil’s innovative green loan financing model. This model offers small and medium-sized farmers interest-free capital for up to 10 years in exchange for a fixed share of the carbon credits generated from their transition to regenerative agriculture. In addition to this financial mechanism, the deal includes support from EU Soil Carbon Corp, a subsidiary of Key Carbon, which will fund the expansion of InSoil’s technical and financial advisory services for farmers.
This strategic collaboration addresses growing concerns about the sustainability of industrial agriculture. Intensive farming has led to the depletion of soil health and biodiversity, rising input costs, and stagnant yields, all of which strain farmers’ incomes and reduce food quality. The regenerative approach counters these trends by promoting soil regeneration, enhancing water cycles, and increasing biodiversity practices that can contribute to long-term productivity and resilience in agriculture.
Agriculture-related greenhouse gas emissions have significantly increased over the past five decades, and projections indicate a potential 30% rise by 2050. The shift to regenerative methods presents a viable path to reverse this trend. As demand for carbon credits grows, especially those with high integrity and traceability, the partnership between InSoil and Key Carbon is expected to play a crucial role in scaling up credible, removal-based solutions.
Farmers involved in the program will benefit from InSoil’s robust measurement, reporting, and verification (MRV) framework. This includes laboratory-grade soil analysis, remote sensing technologies, expert agronomic assessments, and other data-driven techniques that ensure carbon credits generated are verifiable and compliant with EU regulations.
Corporate demand for reliable, localised carbon credits is rising, driven by evolving environmental standards and corporate climate targets. The deal enhances the availability of such credits while offering farmers much-needed access to long-term, low-cost financing and expert guidance.
InSoil has already provided more than €80 million in financing to over 3,000 European farmers. With this new injection of capital, the firm is positioned to extend its reach to another 2,500 farmers, providing both financial support and the tools needed to transition successfully to regenerative practices.
The collaboration not only addresses the economic pressures faced by farmers but also contributes to the broader goals of climate mitigation, sustainable food production, and ecosystem restoration across Europe’s agricultural heartlands.
