Mantas Mikuckas, co-founder of Vinted, invested €1M in HeavyFinance, a Vilnius-based climate tech company. HeavyFinance is on a mission to remove 1 gigaton of CO2 emissions by 2050 through investment in sustainable agriculture.
Mantas Mikuckas says, “Knowing how much effort and perseverance is needed to minimise carbon emissions in fashion, 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,” adds Mikuckas.
Transforming the agricultural sector
Founded in 2020, HeavyFinance aims to transform the agricultural sector, a major contributor to greenhouse gas emissions, by providing Green Loans to small and medium-sized farms for transitioning to regenerative farming practices.
Green Loans do not carry interest rates for farmers and are repaid through the sale of carbon credits.
By generating revenue from the carbon credit market, HeavyFinance enables both retail and institutional investors to participate, making it a financially sustainable model.
HeavyFinance aims to produce 250,000 carbon credits by 2024 and remove 1 gigaton of CO2 emissions by 2050, showcasing a strong commitment to environmental conservation and sustainable agriculture.
Laimonas Noreika, CEO and co-founder of HeavyFinance says, “We’re thrilled about this investment because both HeavyFinance and Mantas share a similar mantra, focusing on creating a win-win scenario for our customers and the planet.”
“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.”
What are Green Loans?
A green loan is a specialised form of financing dedicated to funding projects that significantly contribute to environmental objectives. Similar to green bonds, green loans raise capital for eco-friendly initiatives.
Unlike general loans, these funds are exclusively used for projects like renewable energy, energy efficiency, and initiatives that reduce greenhouse gas emissions. This targeted approach ensures that the borrowed money directly supports environmentally sustainable projects, aligning with global efforts to combat climate change.
Agriculture is a major contributor to global greenhouse gas emissions, accounting for 22 per cent of total CO2 emissions. HeavyFinance addresses this issue by offering Green Loans designed to support the adoption of regenerative farming practices.