QANTAS has joined Rio Tinto and BHP as foundational traders in a brand new fund that may develop high-integrity, nature-based carbon tasks in Australia.
Managed by Silva Capital – a three way partnership between funding managers Roc Companions and C6 Funding Administration – the Silva Carbon Origination Fund goals to lift $250 million to originate and handle high-integrity Australian Carbon Credit score Models (ACCUs).
It is likely one of the first funds in Australia to supply traders with entry to provide of high-integrity ACCUs at scale, generated by means of land reforestation tasks and built-in agriculture.
The foundational traders have dedicated $80 million, with Qantas financing the funding by means of its AUD$400 million Climate Fund. The Local weather Fund was established in 2023 to allow funding into the options the Qantas Group requires to decarbonise, together with investing in Sustainable Aviation Gas (SAF), in partnership with Airbus.
Alongside investments in direct decarbonisation applied sciences like SAF, high-integrity carbon offsets will play an ongoing and demanding position in tough to abate industries equivalent to aviation. The Australian Authorities’s Safeguard Mechanism Coverage and the Paris Settlement’s international emissions discount targets are anticipated to extend the demand for high-integrity carbon tasks.
Qantas’ funding within the Silva Carbon Origination Fund will assist to fulfill its compliance obligations and progress its local weather targets with verifiably high-quality, high-integrity carbon credit. Importantly, the fund can even assist scale high quality, nature-based carbon credit within the Australian market with social and financial advantages for native communities.
Silva Capital acquires agricultural land in Australia to develop carbon sequestration tasks that actively promote sustainable agricultural and land administration practices. Uniquely, these tasks create biodiversity, financial and conservation advantages because the fund prioritises planting tasks that reforest cleared land whereas making certain it could actually additionally stay productive for farming.
Chief Sustainability Officer Andrew Parker mentioned the Silva Carbon Origination Fund would additional Qantas’ dedication to evolving its carbon portfolio to align to nature-based options.
“For onerous to abate sectors, equivalent to aviation, high-integrity carbon offsets will play an vital position in attaining local weather targets. We anticipate the demand for carbon offsets to proceed to develop into the long run and it’s going to take partnerships throughout industries to boost the general availability of high-quality, high-integrity carbon credit,” mentioned Mr Parker.
“The Silva Carbon Origination fund will allow us to proceed to raise our carbon market technique, whereas additionally serving to to positively form the event of the general business.
“We’re persevering with to evolve our carbon portfolio to not solely embody high-quality, high-integrity carbon tasks but additionally align to nature-based options. By our Local weather Fund, we proceed to show our consideration to Australian tasks that create ecological and financial advantages.”
This funding builds on Qantas’ latest momentum, contributing to a number of tasks by means of its Local weather Fund. Most just lately, Qantas invested within the Sustainable Aviation Fuel Financing Alliance (SAFFA) fund to assist speed up international manufacturing of aviation biofuel.
In Australia, Qantas has additionally invested in a Queensland biofuel manufacturing facility being developed by Jet Zero Australia in partnership with main sustainable aviation gasoline know-how firm LanzaJet.
Supply: Qantas
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