Several international companies have purchased the first carbon credits generated by local farmers in Lithuania, creating a new source of revenue for the agricultural sector, independent Lithuanian news agency BNS reported on June 22.

This is one of the first signs that carbon farming is becoming a real business model rather than just an environmental concept. The development reflects growing demand from businesses seeking verified carbon offsets as part of their climate strategies. It also highlights the increasing role of agriculture in carbon markets across Europe.

Among the initial buyers are US biotechnology giant Thermo Fisher Scientific, climate finance companies Anew Climate and Key Carbon, and Baltic private equity investor Livonia Partners. The transactions mark the first commercial sale of carbon credits produced through Lithuania's largest carbon farming programme, BNS said.

The initiative, operated by climate finance company InSoil in partnership with agricultural group Linas Agro, rewards farmers for adopting practices that help capture and store carbon in agricultural soils. Programme organisers say the first sales have already generated tens of thousands of euros for participating farms, BNS said.

According to Jonas Baksys, head of Linas Agro, the payments demonstrate that carbon credits can become an additional revenue stream alongside traditional agricultural production.

The programme has expanded rapidly, with more than 140,000 hectares already enrolled. To preserve environmental quality and ensure strong performance metrics, organisers have decided to cap new admissions this year. A further 50,000 hectares of arable land will be accepted into the scheme during 2024.

Investor interest has also strengthened. Canadian climate finance company Key Carbon previously announced plans to support the programme's expansion by providing up to €100mn in financing for participating farmers. The company has additionally invested €3.7mn to secure rights to part of the future carbon credit output, BNS said.