Australian airline Qantas has partnered with mining heavyweights Rio Tinto and BHP to launch a new fund to develop nature-based carbon projects in Australia. This initiative, the Silva Carbon Origination Fund, is set to raise $165 million to manage Australian Carbon Credit Units (ACCUs). The three companies have collectively pledged AUD80 million as foundational investors.
Aerial view of Tasmanian Wilderness, the biggest forest in Australia. AI generated picture.
This fund is one of the first in Australia to offer large-scale access to high-integrity ACCUs, focusing on land reforestation and integrated agriculture. Qantas, which plans to finance its investment through its $265 million Climate Fund, sees this as a critical step in its broader decarbonisation strategy.
Qantas emphasised the importance of carbon offsets for industries like aviation, where direct emissions reduction is challenging. The company’s recent sustainability report targets a 25% reduction in net emissions by 2030, with carbon offsets expected to contribute significantly to this goal.
Read more: Global carbon credit market set to soar to $1.2 trillion by 2029
The airline is also evolving its carbon credit portfolio to prioritise nature-based solutions, aligning with global emissions reduction targets under the Paris Agreement. The demand for high-quality carbon offsets is anticipated to rise, driven by policies like Australia's Safeguard Mechanism.
Last month, Qantas joined the Sustainable Aviation Fuel Financing Alliance (SAFFA) to further accelerate global biofuel production, signalling a strong commitment to sustainable aviation.
Read more: What makes DGB’s reforestation projects unique?
As more companies strive for carbon neutrality, the demand for carbon credits, especially from nature-based projects, is expected to increase, leading to higher prices. By partnering with DGB Group, businesses can collaborate with a leader in the carbon credit market and nature-based solutions. Our projects not only effectively mitigate carbon but also deliver substantial environmental and socio-economic benefits. We produce high-quality, verified carbon units that support businesses in meeting their sustainability goals.
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