Rio Tinto has become a foundation offtaker of a new $250 million agricultural platform aimed at generating high-quality Australian Carbon Credit Units (ACCUs).
The “landmark, large-scale, diversified” platform has been created through collaboration between the Clean Energy Finance Corporation (CEFC) and global investment group La Caisse.
The Meldora platform – which recently purchases a 15,000-hectare irrigation farm in central Queensland – will combine both agricultural production with large-scale environmental plantings under the ACCU scheme, the CEFC say.
This is believed to be underpinned by a long-term offtake from Rio Tinto for part of the ACCUs to be issued, said to create both economic and environmental benefits, including the planting of native vegetation for long-term carbon sequestration and biodiversity benefits.
Rio Tinto’s involvement in the project reinforces confidence in the platform’s ability to scale and aligns with the major miner’s goal of achieving net-zero carbon emissions by 2050.
The investment is said to promote the integration of sustainable Australian agricultural production with restoration of local species vegetation that generates carbon credits – harnessing carbon sequestration and supporting efforts in remaining competitive in the “global net zero economy”.
“This investment is a timely step towards advancing resilient, climate-smart agriculture in Australia, while delivering measurable environmental and economic value,” La Caisee head of sustainability Emmanuel Jaclot said.
The CEFC have committed over $18 billion in environmental projects as of June 30.
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