World Bank’s IFC Teams Up with Agreena to Boost Sustainable Agriculture Funding

The partnership between the International Finance Corporation (IFC), a member of the World Bank Group, and Danish climate fintech company Agreena marks a significant step forward in promoting sustainable farming across Eastern Europe. This groundbreaking collaboration seeks to drive the transition to regenerative agriculture by improving farmers' access to financing while helping banks achieve their green finance objectives.

As the largest global development institution dedicated to the private sector in emerging markets, IFC will leverage its Europe Sustainable Finance Project to provide advisory services aimed at increasing the flow of climate finance. This initiative spans multiple sectors, including agriculture, where the focus will be on supporting farmers in adopting regenerative practices. Agreena’s role is to facilitate this shift by providing tools and resources that help banks expand lending to the agricultural sector, especially to farmers who may face financial challenges during the early stages of transitioning to more sustainable farming methods.

Regenerative agriculture offers long-term social, economic, and environmental benefits, such as enhanced biodiversity and reduced carbon emissions. However, the transition can be difficult for farmers due to the need for new equipment and the potential for short-term production losses. Many farm businesses operate on thin margins, making it essential for financial institutions to bridge this 'finance gap.' By supporting farmers through these initial challenges, banks not only help reduce carbon footprints but also strengthen their sustainable finance portfolios.

Liliana Pozzo, IFC's Sustainable Finance Advisory Services Manager for Latin America, the Caribbean, and Europe, emphasized the importance of the partnership, stating that the collaboration with Agreena is designed to accelerate the adoption of regenerative farming in the region. In addition to helping farmers implement sustainable practices such as cover cropping, reduced tillage, and the use of organic fertilizers, the partnership equips financial institutions with the tools and data they need to support these transitions.

Agreena’s expertise lies in its advanced Measurement, Reporting, and Verification (MRV) system, which combines satellite-driven remote sensing with on-site inspections to quantify a farm's greenhouse gas reductions and carbon removals. This robust system offers continuous monitoring and high levels of accuracy and traceability, ensuring that farmers’ environmental gains are thoroughly documented and validated. Agreena’s soil carbon program, one of the largest in Europe, provides granular, verified farm-level data that banks can use to support green finance documentation, thus opening up new financing opportunities for farmers.

Frederik Aagaard, Chief Commercial Officer at Agreena, highlighted the role of the agricultural sector in both contributing to and mitigating climate change. He noted that banks are instrumental in unlocking the sector's potential to become a leader in sustainability. Through this partnership with IFC, Agreena aims to increase banks' awareness of regenerative agriculture and soil carbon removals. The company also plans to explore innovative financial solutions, such as offering carbon credits for loan repayment and green bonds, to further support the development of sustainable farming.

This collaboration is expected to significantly enhance the transition to regenerative agriculture, benefiting farmers, financial institutions, and the environment alike. By addressing both financial barriers and sustainability goals, the partnership between IFC and Agreena represents a vital contribution to the future of farming in Eastern Europe and beyond.