- Qantas, Rio Tinto, and BHP have committed $80 million to the $250 million Silva Carbon Origination Fund, managed by Silva Capital, to develop high-quality carbon projects in Australia.
- The fund generates Australian Carbon Credit Units (ACCUs) through large-scale reforestation and integrated agricultural projects that benefit local communities.
- Qantas’ investment aligns with its strategy to decarbonise aviation, supported by its AUD$400 million Climate Fund, which invests in Sustainable Aviation Fuel (SAF).
Qantas, Rio Tinto, and BHP have partnered to invest in a $250 million fund focused on nature-based carbon projects in Australia. Silva Capital, a joint venture between Roc Partners and C6 Investment Management, manages the Silva Carbon Origination Fund. The fund aims to generate high-quality Australian Carbon Credit Units (ACCUs) through large-scale land reforestation and integrated agricultural projects.
The three companies have already committed $80 million to the fund. Qantas is using its AUD$400 million Climate Fund, launched in 2023, to finance its share. This Climate Fund also supports investments in Sustainable Aviation Fuel (SAF), critical to Qantas’ emissions reduction strategy.
Qantas faces increasing regulatory and market pressures to meet climate targets. The Australian Government’s Safeguard Mechanism Policy and the global emissions reduction goals set by the Paris Agreement are driving the demand for high-integrity carbon offsets. These offsets are crucial in sectors like aviation, where decarbonisation is challenging.
Qantas’ Chief Sustainability Officer, Andrew Parker, highlighted the importance of carbon offsets for the airline. “In aviation, high-integrity carbon offsets are crucial for achieving climate goals,” Parker said. He noted the growing demand for such offsets, making partnerships like this essential for future needs.
Silva Capital plans to acquire and manage agricultural land in Australia for its projects. The fund will focus on developing carbon sequestration initiatives that promote sustainable land management practices. These projects will deliver local communities biodiversity, conservation, and economic benefits.
Qantas has taken significant steps in its sustainability journey through its Climate Fund. The airline recently invested in the Sustainable Aviation Fuel Financing Alliance (SAFFA) to boost global biofuel production. Qantas also supported a biofuel production facility in Queensland developed by Jet Zero Australia in partnership with LanzaJet.
Qantas is evolving its carbon portfolio by focusing on high-quality, nature-based solutions. The airline views the Silva Carbon Origination Fund as securing the carbon credits needed to meet regulatory obligations and advance its sustainability goals.
Qantas is reinforcing its commitment to decarbonising the aviation industry by investing in the Silva Carbon Origination Fund. The fund’s emphasis on high-integrity, nature-based projects aligns with Qantas’ goal of contributing to the growth of Australia’s carbon market, which will also benefit local communities economically and socially.
As demand for high-integrity carbon credits rises, Qantas positions itself as a leader in transitioning to a low-carbon future. The airline’s investment in the Silva Carbon Origination Fund demonstrates its dedication to sustainability and its role in shaping the future of the carbon market in Australia.