Sistema.bio raises $53M to launch FarmCarbon, expanding climate finance for small farmers and mitigating methane.

Sistema.bio raises $53M to launch FarmCarbon, channeling climate finance to smallholder farmers to reduce methane emissions through biogas technology.

LONDON, UNITED KINGDOM, March 17, 2026 /EINPresswire.com/ -- Sistema.bio, a global leader in biogas technology and climate solutions for smallholder farmers, today announced the financial close and launch of FarmCarbon, a pioneering carbon finance vehicle designed to channel global climate capital directly to farmers.

The first US$53 million close of the facility has been led by BNP Paribas Asset Management Alts (BNPP AM Alts), the alternative investments platform of BNP Paribas Asset Management; British International Investment (BII), the UK’s development finance institution and impact investor; and Shell Foundation, an independent charity supporting underserved communities in Africa and Asia to increase incomes while reducing emissions.

FarmCarbon will facilitate financing for more than 90,000 Sistema.bio biodigesters on farms worldwide, capturing and destroying methane emissions from livestock waste and generating over 9 million tonnes of CO₂ equivalent emissions reductions over the coming decade.
Beyond emissions reductions, FarmCarbon is designed to deliver meaningful economic benefits for smallholders. By converting livestock waste into biogas and organic fertiliser, biodigesters reduce household energy costs, replace purchased chemical inputs, and improve farm productivity. The systems provide renewable energy for cooking, heating, and electricity generation while improving waste management and soil health.

FarmCarbon aims to scale climate finance in small-scale agriculture, a critical but often overlooked sector in global climate strategies despite its significant emissions footprint and mitigation potential. The initiative focuses on methane, a powerful short-lived climate super-pollutant with 28 times the warming potential of CO₂ over 100 years, according to the GHG Protocol. Methane is responsible for roughly 30% of global warming, with livestock manure management representing a major source—accounting for around 10% of global greenhouse gas emissions.

Despite the urgency of methane mitigation, recent reports show that only about 2% of tracked global climate finance flows are directed toward methane abatement projects.

FarmCarbon has been specifically designed to overcome the financial barriers that have historically limited investment in agricultural methane reduction. The vehicle provides pre-financing for biogas project development, securing future emissions reductions that are delivered to carbon credit buyers through multi-year purchase agreements.

The fund’s structure combines rigorous pre-validation, digital monitoring and reporting systems, and a robust legal and financial framework to ensure high-quality emissions reductions and transparent carbon outcomes. At the same time, the model enables farmers to receive financial benefits upfront, helping them adopt climate-smart technologies and maximize the long-term value of biodigesters.

“For 15 years, Sistema.bio has worked hand-in-hand with farmers in Asia, Africa, and LATAM installing biodigesters. FarmCarbon builds on that proven solution by bringing climate finance directly to farmers and enabling them to co-invest in energy, productivity, health, and climate outcomes on their own farms,” said Alexander Eaton, CEO of Sistema.bio.

Methane abatement through biodigesters is widely recognized as one of the most cost-effective and immediate climate actions available. A 2025 study published in Science, estimates a benefit-cost ratio of at least 3:1, rising to more than 6:1 when health co-benefits are included, and places the global social cost of methane at approximately US$7,381 per tonne.

“By embedding strong governance, digital monitoring, and robust standards into the vehicle from the outset, FarmCarbon shows how capital can be mobilized into climate solutions that deliver measurable impact for both farmers and the planet,” said Jonathan Dean, Deputy Head of Natural Capital & Impact Private Equity at BNP Paribas Asset Management Alts.

Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate at British International Investment, added: “At BII, we play a catalytic role in driving innovative financing solutions that mitigate climate change while strengthening resilience for communities most affected.

We are proud to support FarmCarbon alongside Sistema.bio, BNP Paribas Asset Management Alts, and Shell Foundation to help channel private capital into climate-positive solutions for smallholder farmers across Africa and Asia.”

FarmCarbon’s first project has already received an ex-ante rating of AAe from BeZero Carbon and the Core Carbon Principles (CCPs) label, reflecting the rigorous preparatory work behind the initiative.

“Farmers need higher incomes. Investors need scalable opportunities that deliver returns. And the planet needs both to happen on a low-carbon pathway,” said Jonathan Berman, CEO of Shell Foundation. “FarmCarbon is a breakthrough that aligns all three, helping unlock further investment while demonstrating that this model can work for people, markets, and the climate.”

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Introducing FarmCarbon: High-Integrity Carbon Credits & Climate Finance

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