Qantas has joined Rio Tinto and BHP as foundational investors in a new fund aimed at developing high-integrity, nature-based carbon projects across Australia.
Managed by Silva Capital—a joint venture between investment managers Roc Partners and C6 Investment Management—the Silva Carbon Origination Fund aims to raise AU$250 million to originate and manage high-integrity Australian Carbon Credit Units (ACCUs).
This fund is among the first in Australia to provide investors with access to a large-scale supply of high-integrity ACCUs, generated through land reforestation projects and integrated agriculture.
The foundational investors have committed AU$80 million, with Qantas financing its share of the investment through its AU$400 million Climate Fund. Established in 2023, the Climate Fund supports the Qantas Group’s decarbonisation efforts, including investments in Sustainable Aviation Fuel (SAF), in partnership with Airbus.
In addition to investments in direct decarbonisation technologies like SAF, high-integrity carbon offsets are expected to play a critical and ongoing role in hard-to-abate industries such as aviation. The Australian Government’s Safeguard Mechanism Policy and the Paris Agreement’s global emissions reduction targets are anticipated to increase the demand for such high-integrity carbon projects.
Qantas’ investment in the Silva Carbon Origination Fund will assist in meeting its compliance obligations and advancing its climate targets with verifiably high-quality, high-integrity carbon credits. Importantly, the fund will also contribute to scaling quality, nature-based carbon credits in the Australian market, delivering social and economic benefits to local communities.
Silva Capital acquires agricultural land in Australia to develop carbon sequestration projects that actively promote sustainable agricultural and land management practices. These projects uniquely generate biodiversity, economic, and conservation benefits by prioritising reforestation of cleared land while ensuring it remains productive for farming.
Chief Sustainability Officer Andrew Parker stated that the Silva Carbon Origination Fund would further Qantas’ commitment to evolving its carbon portfolio to align with nature-based solutions.
