Rio Tinto, Qantas and BHP commit $80m to carbon credits fund
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The news: Silva Capital has announced the first close of its $250 million Australian carbon credits fund, with commitments secured from Rio Tinto, Qantas, and BHP as foundation investors.
The numbers: Silva Capital — a joint venture between investment managers Roc Partners and C6 Investment Management — has received commitments totalling $80 million from Rio Tinto, Qantas, and BHP.
The context: The Silva Carbon Origination Fund aims to provide investors with access to large-scale, high-integrity carbon credits from land reforestation projects integrated with sustainable agriculture, supporting the transition towards net zero.
Silva Capital will originate and manage Australian Carbon Credit Units (ACCUs) by investing in Australian agricultural land and developing large-scale carbon sequestration projects. These projects will focus on reforesting cleared areas while ensuring the land remains productive for farming.
By integrating carbon projects with traditional farming, Silva Capital aims to balance agricultural productivity with environmental stewardship, adopting a model that supports both economic and ecological sustainability.
The fund is designed for financial investors seeking attractive risk-weighted returns, as well as for carbon market participants looking for high-integrity ACCUs to supplement their decarbonisation efforts and meet regulatory compliance obligations.
What they said: Silva Capital co-managing director Raphael Wood said: "We are thrilled to have Rio Tinto, Qantas and BHP as foundation investors in the Silva Carbon Origination Fund. Their partnership and commitment highlight the importance of high-integrity carbon credits in the transition to a low-carbon economy."
"This fund represents not only an investment in carbon abatement but a significant milestone in Australia’s carbon market, that will, importantly, support the long-term success of our farming communities and nature repair," he said.
The source: Silva Capital media release
