Qantas commits to funding carbon credit projects

Australian airline Qantas is contributing to a new fund designed to develop “high-integrity, nature-based” carbon projects in its home country.

Qantas is joining mining giants Rio Tinto and BHP as foundational investors in the fund, run by Silva Capital, which aims to raise A$250 million (€150 million) to create and manage Australian Carbon Credit Units (ACCUs) through reforestation and other agricultural projects.

The three companies have committed AU$80 million (€48 million) for the fund, with Qantas using money from its Climate Fund, which was launched last year to allow the airline group to invest in decarbonisation initiatives including Sustainable Aviation Fuel (SAF).

Silva Capital acquires agricultural land in Australia to develop carbon “sequestration” projects, which promote sustainable agricultural and land management practices.

Qantas’ chief sustainability officer Andrew Parker said: “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.”

Qantas is using its Climate Fund for a series of sustainability initiatives, including its recent investment in the SAF Financing Alliance fund, which aims to accelerate the production of alternative fuels to power flights.

The airline is also investing in a biofuel production facility in Queensland, which is being developed by Jet Zero Australia in partnership with alternative aviation fuel specialist LanzaJet.