Sistema.bio, a global provider of biogas and regenerative agriculture solutions for smallholder farmers, has announced the financial close and launch of FarmCarbon, a climate finance vehicle aimed at expanding methane mitigation and channeling climate capital directly to farmers worldwide.
The first USD 53 million close of the FarmCarbon facility has been led by BNP Paribas Asset Management’s alternative investments platform BNPP AM Alts, along with British International Investment (BII), the United Kingdom’s development finance institution, and Shell Foundation, an independent charity supporting low-income communities in Asia and Africa.
FarmCarbon is designed to finance the deployment of more than 90,000 biodigesters on farms globally. These systems capture methane emissions from livestock waste and convert them into biogas and organic fertiliser, helping reduce emissions while lowering farm energy costs and improving agricultural productivity. The initiative is expected to generate over 9 million tonnes of C*O_{2} equivalent emissions reductions.
The facility focuses on scaling climate finance in small-scale agriculture, a sector that contributes significantly to global emissions but receives limited climate funding. Methane, a powerful greenhouse gas, accounts for about 30 percent of global warming, and livestock activities contribute roughly 10 percent of global emissions. However, recent analyses show that only about 2 percent of tracked global climate finance currently targets methane reduction measures.
Unlike traditional carbon finance mechanisms, FarmCarbon deploys prefinancing for biogas projects, allowing farmers to access the future economic value of carbon credits upfront. The vehicle secures future emissions reductions and later delivers them to carbon credit buyers through multi-year agreements. The model also incorporates digital Measurement, Reporting and Verification (dMRV) and rigorous pre-validation to ensure transparency and high-quality carbon outcomes.
According to Alexander Eaton, CEO and Co-founder of Sistema bio, the initiative builds on more than 15 years of work supporting farmers with biodigester technology that converts livestock waste into clean energy and organic fertiliser. He said that the FarmCarbon platform aims to scale this proven solution globally while enabling farmers to reinvest in productivity, health, and climate-positive practices.
Jonathan Dean, Deputy Head of Natural Capital and Impact Private Equity at BNP Paribas Asset Management Alts, said that the vehicle demonstrates how carbon markets can deliver institutional-grade climate solutions while supporting vulnerable communities and strengthening access to financing for farmers.
Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate at British International Investment, added that the partnership aims to mobilise private capital for climate-positive agricultural solutions while improving resilience for communities most affected by climate change.
The platform’s first project has already secured an ex-ante AAe rating from BeZero Carbon and received the Core Carbon Principles (CCP) label, highlighting the quality and integrity of its emissions reduction framework.
Looking ahead, FarmCarbon aims to mobilise more than USD 1 billion in climate finance over the next decade, expanding access to clean energy, organic fertiliser, and sustainable waste management for farming communities while contributing to global climate mitigation goals.
