Highlights

• Qantas is investing in a fund with Rio Tinto and BHP to support nature-based carbon projects in Australia.
• Managed by Silva Capital, this fund plans to raise $250 million for Australian carbon credits through reforestation and farming.
• Qantas is using its AUD$400 million Climate Fund, set up in 2023, to invest in the Silva Carbon Fund and help with its carbon reduction goals.
• The fund supports sustainable farming, biodiversity, and benefits for local communities.

Qantas has partnered with Rio Tinto and BHP as initial investors in a new fund designed to develop nature-based carbon projects across Australia.

This initiative is managed by Silva Capital, a joint venture between Roc Partners and C6 Investment Management, under the Silva Carbon Origination Fund. The fund aims to secure $250 million to generate and manage Australian Carbon Credit Units (ACCUs) with a strong emphasis on integrity.

As one of the first funds in Australia to offer large-scale access to ACCUs, the focus is on land reforestation projects and integrated agricultural practices. The founding investors have collectively committed $80 million, with Qantas contributing through its AUD$400 million Climate Fund. This fund was established in 2023 to support Qantas Group's decarbonisation strategies, including investment in Sustainable Aviation Fuel (SAF) in collaboration with Airbus.

Carbon offsets, particularly those with high integrity, are increasingly important for sectors like aviation, where direct emissions reductions are challenging. The Australian Government’s Safeguard Mechanism Policy and global targets set by the Paris Agreement are likely to drive up demand for credible carbon projects. Through its investment in the Silva Carbon Origination Fund, Qantas aims to meet regulatory requirements while advancing its climate goals with verifiable, high-quality carbon credits.

Silva Capital's approach involves acquiring agricultural land in Australia to develop carbon sequestration projects. These projects not only contribute to carbon reduction but also promote sustainable land management, create biodiversity, and provide economic benefits to local communities. The fund prioritises reforesting cleared land while ensuring that it remains viable for farming.

Qantas’ Chief Sustainability Officer, Andrew Parker, says: "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.

“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.

“We’re continuing to evolve our carbon portfolio to not only include high-quality, high-integrity carbon projects but also align to nature-based solutions. Through our Climate Fund, we continue to turn our attention to Australian projects that create ecological and economic benefits.”

This investment builds on Qantas' recent progress, including its contribution to the Sustainable Aviation Fuel Financing Alliance (SAFFA) fund to accelerate the global production of aviation biofuel. In addition, Qantas has invested in a Queensland biofuel production facility being developed by Jet Zero Australia in partnership with LanzaJet, a leader in sustainable aviation fuel technology.

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Source: Qantas