Global food production generates at least a quarter of greenhouse gas emissions, more than 80% of which comes from agriculture. But managing that impact is easier said than done because there are so many variables to deal with.
'Regenerative' agriculture is being hailed as one way to move towards several sustainability goals, as it offers farmers the opportunity to increase biodiversity and enrich soil while reducing carbon emissions. Well advertised. It has a direct impact on food production and thus the food supply.
Berlin-based agritech startup Klim is working to make it easier for farms to switch to regenerative agriculture, and to help expand its business internationally, the startup recently announced that It has secured $22 million in a Series A funding round led by bank BNP Paribas. Notably, this round is one of the largest funds raised by a European agritech startup this year.
Thanks to Krim, farmers have the tools to plan, execute, and finance their transition to regenerative practices. This includes data on soil health, biodiversity restoration, carbon capture and emissions reduction.
Farmers can also use Krim’s platform to track their transition progress and prove it to their supply chain partners, allowing them to earn revenue payments for the carbon they sequester. Kulim then receives a commission on the sale of carbon 'insets' linked to the supply chain, which farmers can earn by selling these on Kulim's markets.
As a result, food companies can purchase these “ecosystem services” to make their supply chains more environmentally friendly, especially as emissions reporting requirements increase. In other words, farmers are paid as much for their “agricultural carbon” as they are for growing and selling crops and cattle.
Klim was founded in Berlin in 2020 by Robert Gerlach, Nina Mannheimer and Adib Maimon, and over the past four years has grown to 3,500 people across 700,000 hectares of land, or 5% of Germany's agricultural land. The company says it has been providing services to farmers. Currently, the company's customers include major agricultural companies such as Nestlé, Kaufland, and Arista.
Gerlach told TechCrunch that the world is slowly losing soil, given that many of the world's soils have already lost 50% of their original organic carbon stock. There is an urgent need to transition agricultural land to regenerative practices.”
“To guide farmers toward regenerative agriculture, we need to do two things. The first is a digital agronomist who shows them how best to get started for their particular farm situation. For example, starting with just 5% of the farm and choosing appropriate methods,” says Gerlach.
He said the second thing is to quantify the impact. “We do that by combining satellite data, soil samples, and primary data that farmers need to input into the platform, which is then all incorporated into a certified model.” This is about removing and reducing emissions. Quantify. However, it is a misconception to say that we are being used for carbon offsets. ”
“What companies like Nestlé really need is reliability. Supply chains are deteriorating and yields are difficult to predict. This is very problematic for food companies,” he added. Ta.
The new funds will be used to expand the company's operations outside Germany.
Krim is not alone in this sector, especially in Europe, where the agritech sector is well-developed. For example, Agricarbon, based in Dundee, Scotland, measures and validates soil carbon capture and storage for farms and carbon markets, and has raised more than €14 million in funding to date. Another competitor, Regrow, raised $63.6 million and Soil Capital raised €5 million.
Maha Keraman, Head of Positive Impact Business Accelerator at BNP Paribas, said: “Krim's innovative platform and approach to scaling up regenerative agriculture will help mitigate climate change and build ecosystem resilience. “It's perfectly aligned with our commitment to funding solutions that improve people's lives and improve their lives.” statement.
Krim's Series A round also saw participation from Earthshot Ventures, Rabobank, AgFunder, Norinchukin Bank, Achmea, Ananda Impact Ventures, and Elevator Ventures, the VC arm of Raiffeisen Bank International. In 2022, the startup closed a $6.6 million seed round led by Berlin-based food and green technology investor Green Generation Fund.