Sistema bio raises $ 53 million for climate capital

A new climate finance initiative aims to channel global capital to smallholder farmers, supporting methane reduction and sustainable agriculture through biodigester adoption.

Written by Geeta Nair

March 17, 2026 19:22 IST

Backed by $53 million in funding, a new platform will help farmers access carbon credit income while scaling biogas technology and reducing agricultural emissions.

Sistema.bio has raised $ 53 million to launch FarmCarbon, a carbon financing initiative to take climate finance to smallholder farmers and enhance methane mitigation efforts. The initial $ 53 million in funding was led by BNP Paribas Asset Management Alts (BNPP AM Alts), the alternative investments platform of BNP Paribas Asset Management, along with contributions from British International Investment (BII), the UK’s development finance institution and impact investor, and the Shell Foundation, an independent charity that supports underserved communities in Africa and Asia to improve incomes while reducing emissions.

Sistema.bio is a biogas technology and climate solutions company based in Pune, India. The company has deployed approximately 1,50,000 of its innovative bio-digesters across the country. These are prefabricated, modular biodigester packages equipped with biogas appliances that are easy to install and use, converting organic waste into renewable biogas and organic fertiliser.

Undisclosed amount raised in strategic funding

In November 2025, Sistema.bio raised an undisclosed amount in strategic funding from Next Bharat Ventures (NBV), an Impact Fund created by Suzuki Motor Corporation in India. Before this, the company raised $15 million from ElectriFi. Sistema.bio has also collaborated with farmers in Asia, Africa, and Latin America.

FarmCarbon will channel global climate capital directly to farmers and facilitate the financing of 90,000 Sistema.bio digesters on farms worldwide. This initiative aims to capture and destroy methane, resulting in emissions reductions equivalent to over nine million tonnes of CO₂.

What did Alexander Eaton say?

“FarmCarbon takes Sistema’s solution and makes it accessible on a larger scale—providing the economic benefits of carbon credits directly to farmers. This empowers them to co-invest in energy efficiency, productivity, health, and climate resilience on their farms,” stated Alexander Eaton, CEO and Co-founder of Sistema.bio.

FarmCarbon focuses on scaling climate finance in small-scale agriculture and emphasises methane reduction, which contributes to 30% of global warming, with livestock accounting for about 10% of global emissions. Methane is a potent greenhouse gas, possessing 28 times the warming power of CO₂ over a century. Despite this, only 2% of tracked global climate finance is directed toward methane abatement measures.

The FarmCarbon model utilises pre-financing for biogas project development, securing future emissions reductions that will later be delivered to carbon credit buyers through multi-year purchase agreements.

This structure ensures that financial benefits reach farmers upfront, providing them with long-term support to maximise the advantages of biogas technology over time. Additionally, FarmCarbon’s pre-financing model enables farmers to access the economic value of future carbon credits immediately, unlocking new income streams and lowering financial barriers to adopting climate-smart technologies.

This article was first uploaded on March seventeen, twenty twenty-six, at twenty-two minutes past seven in the evening.