Proparco’s investment in CarbonFarm supported by EDFI Carbon Sinks guarantee

EU-backed risk-sharing helps scale satellite-verified methane reduction in rice farming and new income for smallholder farmers in Asia.

Brussels, Belgium – 27 October 2026: EDFI Management Company (EDFI MC) announces its support, through the EDFI Carbon Sinks guarantee programme under the European Fund for Sustainable Development Plus (EFSD+), for Proparco’s EUR 1 million equity investment in CarbonFarm. The investment is covered by a 50% guarantee, providing Proparco with a cover backed by the European Union as part of the Global Gateway strategy.

“CarbonFarm shows how the EFSD+ guarantee can reach beyond forestry to agricultural carbon solutions that deliver for both climate and livelihoods. We are pleased to support Proparco in an investment of this kind under the Global Gateway strategy.” – said Dietske Simons, Chief Partnerships Officer, EDFI Management Company.

CarbonFarm is a French company that develops carbon projects which reduce methane emissions from rice cultivation. Working with agribusinesses, NGOs and other project developers, it supports the roll-out of Alternate Wetting and Drying (AWD), an irrigation practice that cuts methane emissions and uses an estimated 20% less water. Its proprietary Digital Monitoring, Reporting and Verification (DMRV) platform uses satellite imagery and machine learning to verify wetting and drying events in the field, bringing greater transparency to rice methane carbon projects.

Proparco’s investment forms part of CarbonFarm’s EUR 5 million Series A round. The funds will be used to develop new carbon projects, further develop CarbonFarm’s DMRV technology and expand its commercial activities, including licensing the technology to other project developers to help scale best practice across this segment of the carbon market. Most of CarbonFarm’s activity is in Asia and the Pacific, notably Vietnam and India, where its projects work directly with smallholder rice farmers.

Rice methane projects are a young and still small segment of the carbon market, and early-stage project developers face long lead times before projects generate revenue. The EDFI Carbon Sinks guarantee shares part of this risk, enabling Proparco to invest at this stage and helping CarbonFarm close its Series A round.

Vassily Carantino, CEO and co-founder of CarbonFarm added “We are seeing a significant increase in interest in decarbonising rice production, both in voluntary carbon markets and through regulated carbon market mechanisms. Recent commitments by Amazon and Google in this sector reflect this growing awareness. As one of the superpollutants, methane deserves a much more prominent place in corporate climate strategies, alongside investments in CO₂ capture. Decarbonising rice production delivers several major benefits: reducing emissions, saving water, improving farmers’ incomes and strengthening their resilience to climate change.

We are delighted to partner with Proparco, one of the most active development finance institutions in carbon markets, to mobilise carbon finance and accelerate the adoption of sustainable rice farming practices at scale around the world.”

The investment is expected to contribute to several Sustainable Development Goals:

• Climate action (SDG 13): reducing methane emissions from rice production and helping farmers adapt to water stress.
• No poverty (SDG 1): creating additional income for smallholder farmers, often in low-income rural provinces.
• Clean water (SDG 6): AWD irrigation uses an estimated 20% less water than continuous flooding.
• Gender equality (SDG 5): co-developing projects with partners committed to integrating women farmers.

Jean-Gabriel Dayre, Head of Proparco’s Natural Capital Division concluded –

“Reducing methane emissions is one of the key ways to deliver significant climate benefits in the near term, and rice farming offers considerable potential in this respect that remains largely untapped. CarbonFarm fully embodies the ambition of our Natural Capital strategy: to support science-based solutions capable of transforming agricultural practices and delivering positive, measurable impacts for the climate, natural resources and smallholder farmers.

We are particularly pleased to support this French startup, which is harnessing innovation, satellite imagery and data to address a global climate challenge, with the potential to deploy its solution at scale across emerging and developing countries.”

By supporting sustainable food systems and climate-resilient agriculture in South-East Asia, the investment also contributes to the Team Europe Initiative on green partnerships with ASEAN under the Global Gateway strategy.

About EDFI Management Company

EDFI Management Company (EDFI MC) is an impact-driven financial service provider created by the EDFIs and supported by the European Union. EDFI MC manages EU-funded investment facilities and EU guarantee programmes, including guarantees backed by the European Fund for Sustainable Development Plus (EFSD+), which is the EU’s main financing arm under the Global Gateway strategy for mobilising private capital in developing and emerging markets.

The EDFI Carbon Sinks Programme is a joint EFSD+ guarantee programme developed by European Development Finance Institutions and EDFI Management Company under the EU’s Global Gateway. Backed by a €366 million guarantee, the Programme supports equity investments in forestry and regenerative agribusiness companies developing carbon sink projects—such as natural forests, marine ecosystems, and blue carbon initiatives—across Africa, Asia, Latin America, and other regions. Its goal is to mobilise up to €4 billion for nature-based climate solutions, helping remove greenhouse gases, restore habitats, and advance global climate and biodiversity objectives. For more information see: https://edfimc.eu/what-we-do/edfi-carbon-sinks/

Enquiries: carbon.sinks@edfimc.eu

About Proparco

Proparco is France’s development finance institution dedicated to the private sector and part of the French Development Agency (AFD) Group. For nearly 50 years, it has supported sustainable economic, social, and environmental development across Africa, Asia, Latin America, Eurasia, and the Middle East, by financing companies and financial institutions in more than 115 countries.

Its activities focus on key sectors, including renewable energy, infrastructure, agribusiness, healthcare, and education. Proparco offers a range of financial solutions—loans, guarantees, and investments—as well as technical assistance through its Propulse program. Its subsidiary Digital Africa supports early-stage African tech startups.

With 26 local offices worldwide, Proparco works closely with its partners to build a more just and sustainable world.

More information: proparco.fr/en |

About CarbonFarm

CarbonFarm is a French company that develops and helps build carbon projects based on methane reduction in rice cultivation. Its proprietary Digital Monitoring, Reporting and Verification (DMRV) tool uses satellite data to verify wetting and drying events, and is also offered to other project developers. CarbonFarm

About EFSD+

The European Fund for Sustainable Development Plus (EFSD+) is the financing arm of the EU’s Global Gateway strategy. It provides guarantees and blended finance instruments to support investments that contribute to sustainable development, particularly in fragile and emerging markets.

About Global Gateway

Global Gateway is the European Union’s strategy to boost smart, clean, and secure connections in digital, energy, and transport sectors, and to strengthen health, education, and research systems across the world. It aims to mobilise up to €300 billion in investments between 2021 and 2027 to support sustainable and trusted partnerships globally.