Key Takeaways
- Sistema.bio has announced the financial close and launch of FarmCarbon, a carbon finance vehicle targeting smallholder farmers, with a first close of $53 million.
- The round was led by BNP Paribas Asset Management Alts, British International Investment, and Shell Foundation.
- FarmCarbon will finance more than 90,000 Sistema.bio biodigesters worldwide, targeting emissions reductions of over 9 million tonnes of CO₂ equivalent.
- The vehicle deploys pre-financing to biogas project development, allowing farmers to access the economic value of future carbon credits upfront.
- FarmCarbon's first project has received an ex-ante AAe rating from BeZero Carbon and the Core Carbon Principles label.
Sistema.bio Closes $53 Million First Tranche of FarmCarbon Vehicle
Sistema.bio, a global provider of biogas technology and climate solutions for smallholder farmers, has announced the financial close and launch of FarmCarbon, a pioneering carbon finance vehicle designed to direct global climate capital to farming communities. The first close of $53 million was led by BNP Paribas Asset Management Alts, British International Investment — the UK's development finance institution — and Shell Foundation, an independent charity supporting underserved communities in Africa and Asia.
FarmCarbon will facilitate financing for more than 90,000 Sistema.bio digesters on farms worldwide, with the goal of capturing and destroying methane to generate emissions reductions of over 9 million tonnes of CO₂ equivalent.
Addressing a Structural Gap in Agricultural Climate Finance
FarmCarbon is designed to tackle a problem that has long limited investment in agricultural methane: the structural barriers preventing capital from reaching small-scale farming operations. Methane accounts for approximately 30% of global warming, with livestock representing around 10% of global emissions. Despite this, recent data indicates that only 2% of tracked global climate finance flows toward methane abatement measures.
Unlike traditional carbon financing mechanisms, FarmCarbon deploys pre-financing to biogas project development, securing future emissions reductions that are later delivered to carbon credit buyers through multi-year purchase agreements. This structure allows farmers to access the economic value of future carbon credits upfront, unlocking new income streams and lowering the financial barriers to adopting biogas technology.
Biodigesters Deliver Multiple Benefits Beyond Carbon
For farming families, the benefits of biodigesters extend well beyond emissions reduction. By converting livestock waste into biogas and organic fertilizer, the systems significantly reduce household energy costs, replace purchased chemical inputs, and improve on-farm productivity. Alexander Eaton, CEO and co-founder of Sistema.bio, described FarmCarbon as taking a proven 15-year-old solution and making it accessible at a larger scale, paying the economic benefits of carbon credits forward to farmers and enabling them to reinvest in energy, productivity, health, and climate outcomes on their own farms.
Rigorous Standards Underpin FarmCarbon Carbon Quality
FarmCarbon's first project has already received an ex-ante rating of AAe from BeZero Carbon and the Core Carbon Principles label, reflecting the preparatory rigor behind the vehicle's launch. The vehicle employs digital Measurement, Reporting and Verification to ensure that only the highest-quality emissions reductions are funded, with transparent, measurable, and traceable origins. Jonathan Dean, Deputy Head of Natural Capital and Impact Private Equity at BNP Paribas Asset Management Alts, said FarmCarbon demonstrates how innovative financing can address both the cause and effect of climate change for smallholder farmers while meeting the quality standards institutional investors require.
FarmCarbon Targets Businesses and Governments Seeking Methane Mitigation
FarmCarbon is currently engaging businesses, governments, and organizations seeking high-impact methane mitigation as part of their climate action plans. Jonathan Berman, CEO of Shell Foundation, described the vehicle as a breakthrough that aligns farmers' need for income growth, investors' need for commercial returns, and the planet's need for a low-carbon pathway.
