BNP Paribas Asset Management Alts (BNPP AM Alts), Europe’s largest alternative asset manager, has announced a strategic investment in FarmCarbon, a new climate finance vehicle launched by biogas leader Sistema.bio.
The investment, made via BNPP AM Alts’ Natural Capital and Impact strategy, aims to accelerate the deployment of biodigesters for smallholder farmers across Latin America, Asia, and Africa.
FarmCarbon is designed to make renewable energy more accessible to family farms. Key features of the initiative include:
- Discounted technology: Farmers receive biodigester units at lower costs or through credit instalments.
- Carbon credit exchange: In return for the discount, farmers transfer the carbon credits generated by the methane-reduction technology.
- Direct impact: The model channels carbon finance back to rural communities while producing high-quality emission reductions.
The technology converts livestock waste into clean cooking biogas and organic fertiliser. This process tackles climate change on multiple fronts by capturing methane—a potent greenhouse gas—displacing chemical fertilisers, and providing an alternative to “slash-and-burn” agricultural practices.
Jonathan Dean, Deputy Head of Natural Capital & Impact Private Equity at BNPP AM Alts, stated: “FarmCarbon shows how carbon markets can reach the level of high-quality that institutional investors expect. This vehicle demonstrates how capital can flow into climate solutions at scale for vulnerable communities.”
The investment follows a significant capital raise for BNPP AM Alts’ Natural Capital strategy, which now exceeds $560 million (£440 million) following commitments from the International Finance Corporation (IFC) and European development finance institutions.
BNPP AM Alts—which recently consolidated the activities of AXA IM Alts—now manages approximately €300 billion in assets, cementing its position as a global leader in sustainable alternatives.
