Qantas, Australia’s national carrier, is set to invest $80 million (US$53 million) in a carbon credits fund managed by Silva Capital. This fund, which aims to raise $250 million, will secure Australian Carbon Credit Units through land reforestation projects. Joining Qantas as founding investors are mining giants BHP and Rio Tinto, both listed on the Australian Stock Exchange.
Silva Capital specializes in developing carbon sequestration projects in Australia by acquiring or leasing agricultural land to secure carbon credits. This investment will assist Qantas in meeting compliance obligations and achieving climate targets by providing high-integrity carbon credits.
The fund will focus on developing mixed-use agricultural and environmental projects in Australia to produce carbon credit units at scale. Carbon market participants and financial investors will have the opportunity to participate in the Fund to access credits and attractive financial returns.
Qantas is also investing in the Sustainable Aviation Fuel Financing Alliance and a Queensland biofuel production facility as part of its aviation biofuel push. This aligns with the company’s commitment to reducing carbon emissions and transitioning to sustainable aviation fuel.
Qantas has set ambitious climate change targets, including reaching net zero emissions by 2050 and reducing emissions by 25 percent of 2019 levels by 2030. The airline plans to have 10 percent of its fuel mix comprised of Sustainable Aviation Fuel by 2030, increasing to 60 percent by 2050.
Meanwhile, competitors like Virgin Airlines and Air New Zealand are also making strides in reducing emissions and implementing sustainability measures within the aviation industry.
