Global food production is responsible for at least a quarter of greenhouse gas emissions, with over 80% coming from agriculture alone. However, tackling this impact is no easy feat, given the complexity of the issue.

“Regenerative” farming has emerged as a potential solution to address various sustainability goals. By practicing regenerative farming, farmers can reduce carbon emissions, increase biodiversity, and improve soil health, directly impacting food production and supply.

Berlin-based agritech startup Klim is leading the way in promoting regenerative farming practices. Recently, the startup secured a $22 million Series A funding round led by BNP Paribas, Europe’s largest bank. This funding is one of the largest raised by agritech startups in Europe this year.

Klim provides farmers with tools to plan, implement, and finance the transition to regenerative farming. Through their platform, farmers can access data on soil health restoration, biodiversity enhancement, carbon capture, and emission reduction. Additionally, farmers can monitor their progress and demonstrate the impact to supply chain partners to earn revenue from sequestered carbon.

With Klim’s marketplace, farmers can sell carbon “insets” linked to supply chains, generating additional revenue. Food companies can purchase these “ecosystem services” to green their supply chains, particularly as emissions reporting requirements become stricter. This means that farmers can earn income from “farming carbon” in addition to traditional crop and livestock sales.

Founded in 2020 in Berlin by Robert Gerlach, Nina Mannheimer, and Adiv Maimon, Klim has served 3,500 farmers in four years, covering 700,000 hectares of land, equivalent to 5% of German farmland. Its client base includes industry giants such as Nestlé, Kaufland, and Aryzta.

In an interview, Gerlach emphasized the urgency of transitioning farmland to regenerative practices, especially as global soils lose organic carbon. Klim’s goal is to equip farmers with the tools and knowledge needed to adopt regenerative agriculture successfully.

Klim plans to use the recent funding to expand its operations internationally. While Klim operates in a competitive European agritech sector, its innovative approach to scaling regenerative agriculture has attracted support from various investors, including Earthshot Ventures and Rabobank.

Overall, Klim’s mission aligns with financing solutions that combat climate change, enhance ecosystem resilience, and improve livelihoods. The startup’s success reflects a growing interest in sustainable agriculture practices and the need for innovative solutions to address environmental challenges.