New Delhi, May 11, 2026: Sistema.bio has announced the launch and financial close of FarmCarbon, a carbon finance initiative designed to expand climate finance access for smallholder farmers while accelerating methane reduction efforts globally. The first close of the platform has secured US$53 million in funding led by BNP Paribas Asset Management, British International Investment and Shell Foundation.
According to Sistema.bio, the FarmCarbon initiative will facilitate financing for more than 90,000 biodigesters on farms worldwide. These biodigesters are expected to help capture and destroy methane emissions, generating estimated emissions reductions of more than 9 million tonnes of CO₂ equivalent.
The company stated that beyond emissions reduction, the platform is intended to support income growth and resilience among smallholder and family farmers. Biodigesters convert livestock waste into biogas and organic fertiliser, helping reduce household energy expenses, dependence on chemical fertilisers, and improving farm productivity.
FarmCarbon has been developed to address financing gaps in agricultural methane reduction, an area that continues to receive limited climate finance despite the sector’s large emissions footprint. According to the release, methane contributes nearly 30 per cent of global warming, while livestock alone accounts for around 10 per cent of global emissions. However, only a small share of global climate finance currently targets methane mitigation.
Unlike traditional carbon finance mechanisms, FarmCarbon uses a pre-financing model that allows farmers to access the economic value of future carbon credits upfront. The initiative deploys financing into biogas project development before carbon credits are generated, while long-term purchase agreements with carbon credit buyers provide future revenue certainty.
The platform also incorporates digital Measurement, Reporting and Verification (dMRV), pre-validation systems, and legal and financial frameworks aimed at ensuring transparency, traceability, and quality assurance in emissions reductions.
Mr. Alexander Eaton, CEO and Co-founder of Sistema.bio, said, “Investing in infrastructure, financing, and services for smallholder and family farms is vital for global food system resilience. For 15 years, Sistema.bio has worked hand-in-hand with farmers in Asia, Africa and LATAM, installing biodigesters that capture methane from animal waste and convert it into a clean energy source—biogas—for thermal, mechanical, and electrical needs on the farm, as well as producing organic fertiliser. FarmCarbon takes this proven solution and makes it accessible at an even larger scale—paying the economic benefits of carbon credits forward to farmers, and empowering them to co-invest in energy, productivity, health and climate outcomes on their own farms.”
The company highlighted that methane abatement through biodigesters is considered one of the more cost-effective near-term emissions reduction approaches, particularly in the agriculture sector. It added that biodigester systems can also provide co-benefits linked to energy access, food security, waste management, and income resilience for farming households.
Mr. Jonathan Dean, Deputy Head of Natural Capital & Impact Private Equity at BNP Paribas Asset Management Alts, said, “FarmCarbon shows how carbon markets can reach the level of high-quality that institutional investors and stakeholders expect. This vehicle demonstrates how innovative financing addresses the cause and effect of climate change for smallholder farmers and vulnerable communities. By strengthening access to financing and embedding robust standards, this facility demonstrates how capital can flow into climate solutions at scale.”
Mr. Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate at British International Investment, said, “At BII, we play a catalytic role in driving innovative financing solutions that aim to protect the planet, mitigate impacts of climate change and strengthen resilience for communities most affected. We are proud to support FarmCarbon, in partnership with Sistema.bio, BNP Paribas Asset Management Alts, and Shell Foundation, to channel more private capital into climate-positive solutions for smallholder farmers across Africa and Asia.”
Sistema.bio stated that FarmCarbon’s first project has already received an ex-ante AAe rating from BeZero Carbon and the Core Carbon Principles (CCPs) label, indicating compliance with carbon quality standards.
Jonathan Berman, CEO of Shell Foundation, added, “FarmCarbon is a breakthrough that aligns all three. Shell Foundation is proud to support this transaction, helping unlock further investment and proving that this new model can work for people, markets, and the climate alike.”
Founded in 2025 by Sistema.bio, FarmCarbon aims to mobilise more than US$1 billion over the next decade toward methane and CO₂ emissions reduction projects in agriculture. The platform is currently engaging with businesses, governments, and organisations interested in integrating methane mitigation into climate action strategies.
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