Qantas joins Rio Tinto and BHP as foundational investors in new local carbon projects fund

Qantas joins Rio Tinto and BHP as foundational investors in new local carbon projects fund
Edited by Travel Weekly


Qantas has joined Rio Tinto and BHP as foundational investors in a new fund that will develop high-integrity, nature-based carbon projects in 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 $250 million to originate and manage high-integrity Australian Carbon Credit Units (ACCUs).

It is one of the first funds in Australia to provide investors with access to supply of high-integrity ACCUs at scale, generated through land reforestation projects and integrated agriculture.

The foundational investors have committed $80 million, with Qantas financing the investment through its AUD$400 million Climate Fund. The Climate Fund was established in 2023 to enable investment into the solutions the Qantas Group requires to decarbonise, including investing in Sustainable Aviation Fuel (SAF), in partnership with Airbus.

Alongside investments in direct decarbonisation technologies like SAF, high-integrity carbon offsets will play an ongoing and critical role in difficult to abate industries such as aviation. The Australian Government’s Safeguard Mechanism Policy and the Paris Agreement’s global emissions reduction targets are expected to increase the demand for high-integrity carbon projects.

Qantas’ investment in the Silva Carbon Origination Fund will help to meet its compliance obligations and progress its climate targets with verifiably high-quality, high-integrity carbon credits. Importantly, the fund will also help scale quality, nature-based carbon credits in the Australian market with social and economic benefits for local communities.

Silva Capital acquires agricultural land in Australia to develop carbon sequestration projects that actively promote sustainable agricultural and land management practices. Uniquely, these projects create biodiversity, economic and conservation benefits as the fund prioritises planting projects that reforest cleared land while ensuring it can also remain productive for farming.

Chief sustainability officer Andrew Parker said the Silva Carbon Origination Fund would further Qantas’ commitment to evolving its carbon portfolio to align to nature-based solutions.

Qantas chief sustainability officer Andrew Parker.

“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,” said Parker.

“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 momentum, contributing to several projects through its Climate Fund. Most recently, Qantas invested in the Sustainable Aviation Fuel Financing Alliance (SAFFA) fund to help accelerate global production of aviation biofuel.

In Australia, Qantas has also invested in a Queensland biofuel production facility being developed by Jet Zero Australia in partnership with leading sustainable aviation fuel technology company LanzaJet.

Qantas joins alliance to accelerate global sustainable aviation fuel supply

Latest News

  • Sustainability
  • Wholesalers

The Intrepid Foundation launches appeal to support Northern Vietnamese communities following Typhoon Yagi

Intrepid Travel has launched an emergency appeal through its not-for-profit, The Intrepid Foundation, to support impacted communities in Northern Vietnam following Typhoon Yagi, which made landfall on 7 September, 2024. All funds raised through the appeal will go directly to grassroots organisation Blue Dragon Children’s Foundation, to provide immediate relief to thousands without shelter, food […]

  • Aviation

Philippine Airlines and VietJet look to community connection near Western Sydney Airport

Both Philippine Airlines and VietJet will explore services from Western Sydney Airport with the airport’s proximity to the Filipino and Vietnamese diaspora in Sydney potentially beneficial to both carriers. Philippine Airlines VP revenue management and commercial planning Alex Featherstone, speaking at the CAPA Airline Leader Summit Australia Pacific, said the carrier would “explore” the potential […]

  • Tourism

Australian Cycle Tours adds new cycle trip to the Murray to the Mountains Rail Trail

Australian Cycle Tours has added a new, extended cycle trip that includes all sections of the popular Murray to the Mountains Rail Trail. The new trip commences in Beechworth with the first two days cycling with a transfer back to Beechworth, before continuing to Myrtleford and Bright, with a cycle on the newest sections of […]

  • Events
  • News

Anangu Communities Foundation raises $75,000 at its third annual Sydney fundraiser

Generous supporters gathered at the Sofitel Sydney Darling Harbour for the third annual Anangu Communities Foundation Sydney fundraiser to help raise $75,000. Voyages Indigenous Tourism Australia administers the Foundation which so far has funded over $3 million in projects to support Anangu communities of Central Australia with a focus on building community capacity in healthcare, […]

  • News
  • Travel Agents

‘Virtuoso on Tour’ photos: Virtuoso showcases its best to agent base

Virtuoso hosted its second annual Virtuoso On Tour,  a destinations event at the ICC in Sydney showcasing tour operators, tourism boards and more to its agent family. The event is designed for travel agency members in Australia and New Zealand to network with Virtuoso partners across the globe. It housed six destination-themed pavilions (Australia & […]