Sistema.bio has raised $53 million in an initial close of a new carbon finance facility, FarmCarbon, aimed at expanding climate funding for smallholder farmers and accelerating methane reduction.
The funding round was led by BNP Paribas Asset Management’s alternatives platform, alongside British International Investment and Shell Foundation.
FarmCarbon will finance the deployment of more than 90,000 biodigesters globally, which convert livestock waste into biogas and organic fertiliser. The initiative is expected to cut over 9 million tonnes of carbon dioxide equivalent emissions, while boosting farm incomes through lower energy costs and improved productivity.
The vehicle targets methane emissions, a potent greenhouse gas responsible for about 30% of global warming and roughly 10% of emissions from livestock, according to industry estimates. Despite its impact, methane mitigation receives only about 2% of global climate finance.
FarmCarbon uses a pre-financing model that allows farmers to access the value of future carbon credits upfront. The facility secures emissions reductions in advance and delivers them to buyers through long-term carbon credit agreements.
Chief Executive Alexander Eaton said the model builds on Sistema.bio’s 15-year track record of deploying biodigesters across Africa, Asia and Latin America, adding that the facility would help scale both climate and income benefits for farmers.
The project has received an ex-ante AAe rating from BeZero Carbon and a Core Carbon Principles label, signalling high-quality emissions standards. It also incorporates digital measurement, reporting and verification systems to track impact.
Investors said the structure demonstrates how carbon markets can attract institutional capital while supporting climate resilience in underserved agricultural communities.
FarmCarbon aims to mobilise more than $1 billion over the next decade to expand methane and carbon reduction efforts in agriculture.