CarbonFarm, a digital measurement, reporting, and verification provider and project developer focused on rice decarbonization, has closed an oversubscribed €7 million Series A round. The funding was led by Colam Impact, with participation from Proparco, Suma Capital, elea, Working Capital Fund, Albo, and BPI France. Existing investors Serena & makesense, through Racine², and Techmind also renewed their support to help scale high-integrity rice projects worldwide.
Investor Confidence and Strategic Focus
The capital will support CarbonFarm's next phase of growth, expanding the technology and expertise required to develop, finance, and measure rice projects. The round brings together impact investors, climate-focused funds, and development finance institutions that see rice decarbonization as a scalable climate solution. Colam Impact described the company as building enabling infrastructure for one of the largest untapped decarbonization opportunities globally.
Methane and Water Benefits
Rice feeds half of the world's population, but its cultivation produces around 12% of global human-caused methane and uses up to 28% of freshwater resources. Better water management, including periodic field drainage, can reduce emissions by up to 50% and water use by up to 30% without lowering yields. These practices also strengthen resilience to droughts, floods, and extreme weather, making rice decarbonization a rare opportunity for climate, adaptation, and livelihoods.
Field-Level Measurement and Local Expertise
Scaling rice decarbonization requires convincing tens of thousands of smallholder farmers to change practices and providing reliable evidence of results. CarbonFarm partners with rice producers, cooperatives, agribusinesses, NGOs, governments, and local project developers because trusted relationships are essential. The company complements local knowledge with project development expertise, digital MRV, access to climate finance, and connections to carbon buyers and corporate supply chains.
Technology and Carbon Accounting
To analyze change across many small plots, CarbonFarm uses AI-powered analysis of satellite imagery, field data collection tools, and greenhouse gas modeling. This technology allows partners to track farming practices and quantify emissions at field level, strengthening evidence for carbon credits and corporate Scope 3 claims. The company argues that independent, field-level evidence is becoming the expectation and helps build confidence among buyers willing to pay for high-quality credits.
Market Momentum and Growing Portfolio
Rice credits are now compatible with most regulated carbon markets, and corporate buyers are increasingly prioritizing methane reduction to slow near-term warming. Recent rice carbon deals announced by Amazon and Google highlight this momentum. Since its previous funding round, CarbonFarm has expanded to 19 countries and works with organizations including Mars Food, Diageo, Ebro, Tilda, BASF Agricultural Solutions, Livelihoods Funds, myclimate, the World Bank, and the Asian Development Bank.
Expansion Plans and Long-Term Goal
The new funding will allow CarbonFarm to deepen its presence across Asia, Africa, and Europe while accelerating its expansion into Latin America. Proparco said rice decarbonization is a highly promising climate finance opportunity that is beginning to receive the attention it deserves. CarbonFarm aims to become the go-to partner for organizations seeking to develop projects, deploy climate finance, or credibly measure their impact.
With this €7 million Series A, CarbonFarm is positioned to help the rice industry turn climate ambition into measurable change across millions of small farms. The company's combination of digital MRV, project development expertise, and access to climate finance addresses a major global decarbonization challenge. Its continued expansion is expected to bring high-integrity rice projects and methane reductions to more farming communities worldwide.