Tuesday, August 13, 2024 Qantas , Rio Tinto, and BHP invest in Silva Carbon Origination Fund to advance high-integrity, nature-based carbon projects in Australia, boosting climate efforts. Qantas has joined forces with Rio Tinto and BHP as foundational investors in a new initiative aimed at developing high-integrity, nature-based carbon projects in Australia. This initiative is overseen by Silva Capital, a collaboration between Roc Partners and C6 Investment Management.
The Silva Carbon Origination Fund is set to raise $250 million, focusing on the origination and management of Australian Carbon Credit Units (ACCUs) with a high standard of integrity. As one of the first funds in Australia to offer large-scale access to high-integrity ACCUs, the fund will generate these credits through land reforestation and integrated agriculture projects. The foundational investors have already committed $80 million, with Qantas contributing through its AUD$400 million Climate Fund.
Established in 2023, the Climate Fund is designed to support Qantas Group’s decarbonization efforts, including investments in Sustainable Aviation Fuel (SAF) in collaboration with Airbus. In addition to direct decarbonization technologies like SAF, high-integrity carbon offsets are expected to play a crucial role in hard-to-abate sectors such as aviation. The Australian Government’s Safeguard Mechanism Policy and the global emissions reduction goals of the Paris Agreement are anticipated to drive demand for high-quality carbon projects.
Qantas’ investment in the Silva Carbon Origination Fund will assist in meeting its compliance obligations and advancing its climate goals with verifiable, high-quality carbon credits. Additionally, the fund is poised to scale up the production of quality, nature-based carbon credits in Australia, providing social and economic benefits to local communities. Silva Capital’s approach involves acquiring agricultural land in Australia to develop carbon sequestration projects that promote sustainable land management and agricultural practices.
These projects are designed not only to sequester carbon but also to enhance biodiversity, conservation, and economic benefits by reforesting cleared land while maintaining its productivity for farming. Chief Sustainability Officer Andrew Parker stated that the Silva Carbon Origination Fund would strengthen Qantas’ commitment to advancing its carbon portfolio in alignment with nature-based solutions. “For hard to abate sectors, such as aviation, high-integrity carbon offsets will play an important role in achieving climate targets.
We expect the demand for carbon offsets to continue to grow into the future and it’s going to take partnerships across industries to enhance the overall availability of high-quality, high-integrity carbon credits,” said Mr Parker . “The Silva Carbon Origination fund will enable us to continue to elevate our carbon market strategy, while also helping to positively shape the development of the overall industry. “We’re continuing to evolve our carbon portfolio to not only include high-quality, high-integrity carbon projects but also align to nature-based solutions.
Through our Climate Fund, we continue to turn our attention to Australian projects that create ecological and economic benefits.” This investment builds on Qantas’ recent progress, adding to several projects funded through its Climate Fund. Most notably, Qantas recently invested in the Sustainable Aviation Fuel Financing Alliance (SAFFA) fund to boost global production of aviation biofuel.
In Australia, Qantas has also supported a biofuel production facility in Queensland, developed by Jet Zero Australia in collaboration with the leading sustainable aviation fuel technology company LanzaJet..
