BNP Paribas Asset Management Alts backs FarmCarbon to scale methane reduction in agriculture

BNP Paribas Asset Management Alts has invested in FarmCarbon, a climate-focused vehicle launched by Sistema.bio, as the firm expands its natural capital and impact investing strategy.

The investment supports the rollout of methane-reduction solutions in smallholder agriculture through the deployment of biodigesters, which convert livestock waste into biogas and organic fertiliser.

FarmCarbon introduces a carbon financing model that enables farmers to access biodigesters at a reduced cost, while transferring the associated carbon credits generated through emissions reduction.

The transaction highlights growing private equity interest in scalable climate solutions, particularly those addressing emissions in agriculture and supporting rural economies.

BNPP AM Alts is deploying capital through its Natural Capital and Impact strategy, which focuses on investments that contribute to greenhouse gas reduction, biodiversity preservation, and sustainable land use.

“We believe our investment in FarmCarbon presents an opportunity to scale up a relatively low-risk, high-quality carbon project with potentially significant co-benefits for rural populations,” said Jonathan Dean, Deputy Head of Natural Capital & Impact Private Equity at BNPP AM Alts.

Sistema.bio operates in more than 30 countries across Latin America, Asia, and Africa, providing climate technology solutions to smallholder farmers.

The investment underscores the increasing role of private capital in financing climate transition initiatives, particularly in emerging markets where scalable solutions can deliver both environmental and social impact.

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