BNP Paribas Asset Management Alts backs FarmCarbon
FarmCarbon offers discounted biodigesters in exchange for associated carbon credits.
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BNP Paribas Asset Management Alts (BNPP AM Alts) has announced an investment in Sistema.bio’s newly created vehicle, FarmCarbon, which is focused on climate finance to scale methane reduction in smallholder agriculture.
Sistema.bio manufactures and installs biodigesters for smallholder farmers in more than 30 countries across Latin America, Asia and Africa to process livestock waste streams into cooking biogas and organic fertiliser.
Farmers receive the biodigester unit at a discounted price, either as an upfront payment or on credit with instalments, in exchange for transferring the associated carbon credits generated by using the biodigester.
This investment is made through BNPP AM Alts’ Natural Capital and Impact investments strategy which seeks to invest in companies with innovative solutions that aim to tackle global climate challenges.
Jonathan Dean, deputy head of natural capital and impact private equity at BNP Paribas Asset Management Alts, said: “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. In our view, we see strong potential for positive impact given the scale of Sistema.bio’s farmer global network, of methane emissions from its biodigesters, and the additional benefit of savings for farmers from the fertiliser and decentralised energy provided by biodigesters.”
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