Rio Tinto to buy carbon credits from A$250M agriculture platform

Canadian pension fund La Caisse, together with Australia’s Clean Energy Finance Corp. (CEFC), is investing A$250 million in the launch of a diversified agricultural platform designed to generate Australian carbon credit units (ACCUs).The platform — named Meldora — will combine sustainable agricultural production with large-scale environmental plantings under the ACCU scheme, a joint statement said on Monday.Underpinning the investment is a commitment by global miner Rio Tinto (ASX: RIO) to serve as a “foundational offtaker” for the carbon credits generated by Meldora. The firm’s aim is to halve its scope 1 and 2 emissions by 2030 from 2018 levels, and the credits are expected to account for up to 10% of the reduction.The Meldora platform will be managed by Australian agriculture and natural capital asset manager, Gunn Agri Partners (GAP). As its first asset, Meldora has purchased a farm of over 15,000 hectares in central Queensland to practice sustainable agriculture and carbon capture and storage.Under the “environmental plantings” methodology for ACCUs, native vegetation is planted and maintained for a minimum of 25 years for some projects and as long as a century for others, providing long-term carbon sequestration and biodiversity benefits.“This investment is a timely step toward advancing resilient, climate-smart agriculture in Australia, while delivering measurable environmental and economic value,” said Emmanuel Jaclot, EVP and head of infrastructure and sustainability at La Caisse, which contributed A$200 million of the investment, with CEFC committing an additional A$50 million.“This initiative represents a long-term investment in nature and land-based strategies in Australian agriculture,” Heechung Sung, CEFC’s head of natural capital, added. “It’s a great privilege to again be able to work with La Caisse and GAP to invest in this strategy and alongside Rio Tinto, who have demonstrated with their long-term offtake, a commitment to invest in high-integrity carbon credits.”Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com