BNP Paribas Asset Management (BNPP AM) announced an investment in FarmCarbon, a newly established vehicle by biogas technology company Sistema.bio, aimed at deploying climate finance solutions to scale methane reduction across smallholder farming systems.
Founded in 2010, Mexico-based Sistema.bio develops modular biodigesters that convert animal waste into biogas and biofertilizer, enabling farms to generate on-site renewable energy while reducing reliance on fossil fuels and chemical inputs.
The company said that FarmCarbon is designed to channel carbon financing directly to Sistema.bio’s global farmer network. Under the model, farmers receive discounted biodigesters, either upfront or via installment financing, in exchange for transferring the carbon credits generated. The platform’s methane reduction programs are expected to deliver high-quality emissions reductions while providing economic benefits to farming households.
Jonathan Dean, Deputy Head of Natural Capital & Impact Private Equity at BNP Paribas Asset Management Alts, said:
“We believe our investment in FarmCarbon presents an opportunity to scale a relatively low-risk, high-quality carbon project with potentially significant co-benefits for rural populations. In our view, there is strong potential for positive impact given the scale of Sistema.bio’s global farmer network, the methane emissions reduction enabled by its biodigesters, and the additional savings for farmers from the fertilizer and decentralized energy provided by the systems.”
The investment follows recent funding commitments to BNPP AM Alts’ Natural Capital and Impact strategy, formerly part of AXA Investment Managers, prior to its acquisition last year by BNP Paribas. Launched in late 2022, the strategy focuses on the protection, restoration and sustainable management of natural capital, providing project financing of natural capital activity as well as equity to companies that are facilitating development of the sector. The strategy reached $560 million in commitments late last year, with backing from several development finance institutions.
