Food production is responsible for about 31% of total greenhouse gas emissions, with 70% of these emissions originating from farms. By 2050, we will need to produce 60% more food to feed a growing population of 9.3 billion. This means that promoting change in agricultural practices is a crucial sustainability measure.
eAgronom’s mission is to do just that by leveraging carbon insetting and regenerative farming practices. The company aims to significantly reduce carbon footprints while providing financial incentives and education for farmers.
This new round of funding includes €4.2 million raised during a booster round last year, now converted into equity, plus an additional €5.8 million raised this year. Swedbank leads the round with a €4 million investment, joining existing investors Icos Capital, Soulmates Ventures, and SmartCap Green Fund.
Beyond expanding the number of onboarded farmers that can store more carbon in the soil, the funding round also positions eAgronom to start selling carbon credits through its Carbon Program, offering additional revenue streams for farmers and improving its practice verification capabilities.
According to Robin Saluoks, co-founder and CEO of eAgronom, the farming sector is extremely conservative. Since the average farmer’s career spans only 40 harvests, they’re unlikely to experiment. “If something is more or less working, it makes sense to continue with it,” Saluoks says. Risk reduction is clearly needed for lasting change. eAgronom’s sustainability programs help reduce risk for farmers by providing extra incentives and education.
eAgronom’s Carbon Program relies on soil’s efficient carbon sequestering capabilities. As a natural carbon sink, soil’s efficacy is second only to the world’s oceans. In addition, thanks to Swedbank’s ongoing cooperation with eAgronom, the bank offers farmers in the Baltics favourable financing terms.
Jon Lidefelt, Head of Baltic Banking at Swedbank, said: “Enabling our customers in their transition with products and services is key for Swedbank. The partnership with eAgronom adds to a fantastic overall solution for our agricultural customers in Estonia, Latvia and Lithuania.”
Founded in 2016, eAgronom already works with over 3,000+ farmers in 14 countries and has initiated field trials and seminars with farmers to determine best practices for each region with specific climate and soil conditions. Partner farms across Europe and Africa have already stored 525,000 tCO2 p.a., roughly equivalent to the annual carbon emissions of 100,000 people. The company is on track to reach its 4.1 million hectare target by 2025.
Not resting on their (sustainably farmed) laurels, eAgronom plans to raise an additional €2-4 million later this year.
The Estonian tech sector takes the environment seriously, and eAgronom is just one promising example. Take a look at what else is going on in the GreenTech sector of the world’s most environmentally conscious country and drop us a line so we can help you find the most impactful investment opportunities.
