BHP, Rio Tinto, and Qantas have announced a joint investment of A$80 million (approximately $52.7 million) in an Australian carbon credits fund focused on land reforestation projects. This initiative aims to support the generation and management of Australian Carbon Credit Units (ACCUs) through reforestation efforts.
Managed by Silva Capital—a collaboration between Roc Partners and C6 Investment Management—the fund seeks to raise A$250 million to fund various projects. ACCUs are issued by the Australian government’s $3 billion Emissions Reduction Fund (ERF), which aims to reduce the country’s carbon emissions by 43% from 2005 levels by 2030.
The ERF primarily issues credits for projects that prevent deforestation, regenerate native forests, or capture methane from landfills. As companies in high-emission sectors, like mining and aviation, increasingly pursue carbon credits to offset their emissions, this fund represents a significant investment in carbon abatement.
Raphael Wood, Co-Managing Director of Silva Capital, emphasized that this fund not only contributes to carbon reduction but also supports the long-term success of farming communities and environmental restoration. The fund plans to invest in farmlands to develop large-scale carbon sequestration projects that promote sustainable agricultural practices.