Qantas Partners with Rio Tinto and BHP in $250m Carbon Fund
Qantas has solidified its commitment to sustainable business practices by joining forces with Rio Tinto and BHP as foundational investors in a pioneering new fund designed to develop high-integrity, nature-based carbon projects across Australia. This collaborative effort is aimed at advancing Australia’s environmental sustainability while addressing the pressing challenges of carbon emissions in hard-to-abate industries such as aviation.
The fund, known as the Silva Carbon Origination Fund, is managed by Silva Capital—a joint venture between Roc Partners and C6 Investment Management. It seeks to raise $250 million to originate and manage Australian Carbon Credit Units (ACCUs) on a large scale, generated primarily through land reforestation projects and integrated agricultural initiatives. The investment is significant as it positions the fund as one of the first in Australia to offer investors access to a robust supply of high-integrity ACCUs.
Qantas, through its AUD$400 million Climate Fund established in 2023, has committed $80 million to this groundbreaking initiative. The Climate Fund was created to support the Qantas Group’s decarbonisation efforts, which include significant investments in Sustainable Aviation Fuel (SAF) in partnership with Airbus. These efforts underscore Qantas’ broader strategy to combat climate change and contribute to the global push for emissions reduction.
The Silva Carbon Origination Fund will be instrumental in helping Qantas meet its compliance obligations under the Australian Government’s Safeguard Mechanism Policy and the Paris Agreement’s global emissions reduction targets. As demand for high-quality, nature-based carbon credits is expected to rise, particularly in sectors where emissions are difficult to eliminate entirely, Qantas’ involvement in this fund is both timely and strategic.
Andrew Parker, Qantas’ Chief Sustainability Officer, highlighted the importance of this investment in enhancing Qantas’ carbon market strategy:
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.
Mr. Parker further emphasised Qantas’ commitment to nature-based solutions, stating,
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. Through our Climate Fund, we continue to turn our attention to Australian projects that create ecological and economic benefits.
Silva Capital’s approach to acquiring agricultural land in Australia is unique in its dual focus on carbon sequestration and sustainable land management practices. By prioritising projects that reforest cleared land while ensuring it remains productive for farming, the fund aims to deliver significant biodiversity, economic, and conservation benefits to local communities.
This investment is part of a broader momentum within Qantas’ sustainability initiatives. The airline has recently made strides through its Climate Fund by investing in various projects, including the Sustainable Aviation Fuel Financing Alliance (SAFFA) to boost global biofuel production, and a biofuel production facility in Queensland being developed by Jet Zero Australia in collaboration with LanzaJet.
For more information on Qantas’ flights or on the GTM Carbon Offset Programme, please contact your Global Travel Management Account Manager.
