Sustainable Agriculture Carbon Credit Platform Launched by La Caisse and CEFC at a Cost of $165 Million
La Caisse and CEFC Launch Carbon Credit-Generating Sustainable Agriculture Platform Meldora
In a significant move towards sustainable land use and climate-smart agriculture, La Caisse (formerly CDPQ) and Clean Energy Finance Corporation (CEFC) have announced the launch of a new platform named Meldora. The platform, managed by Australian agriculture and natural capital asset manager, Gunn Agri Partners (GAP), aims to provide long-term carbon sequestration and biodiversity benefits.
The initial investment for Meldora stands at AUD$250 million, with $200 million from La Caisse and $50 million from CEFC. This investment will be used to develop Meldora into a sustainable agriculture platform on a broadacre and irrigation farm of more than 15,000 hectares in Central Queensland.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability at La Caisse, made a statement regarding the launch of Meldora, highlighting its positioning early in a growing market for high-quality carbon credits. He emphasized that this investment reflects La Caisse's commitment to sustainable land use and its broader net zero ambition.
The partnership with Rio Tinto provides a foundation for Meldora's carbon credit generation and offtake. The investment in Meldora is underpinned by a long-term offtake agreement with Rio Tinto for part of the Australian Carbon Credit Units (ACCUs) to be issued.
GAP Managing Director, Bradley Wheaton, has stated that Meldora's investment model redefines the future of farming by diversifying across irrigation, dryland cropping, and carbon credit generation. He further emphasized that this investment is a timely step towards advancing resilient, climate-smart agriculture in Australia.
Meldora's goal is to generate high-quality ACCUs through integrating large-scale sustainable agricultural production with long-term Environmental Plantings. This methodology for ACCUs involves planting and maintaining native vegetation for a minimum of 25 years and as long as a century for some projects.
The scale of Meldora's investment is uniquely ambitious. Bradley Wheaton, who oversees an ambitious agricultural and carbon investment strategy integrating sustainable farming with environmental restoration in Australia, stated that this investment will help redefine the future of farming.
The investment in Meldora delivers measurable environmental and economic value. By integrating the restoration of native vegetation into an institutional-quality agricultural investment, Meldora is poised to make a significant impact in the realm of sustainable agriculture.
In conclusion, the launch of Meldora marks a significant step forward in Australia's pursuit of sustainable, climate-smart agriculture. With the support of La Caisse, CEFC, and Rio Tinto, Meldora is set to generate high-quality carbon credits while providing long-term carbon sequestration and biodiversity benefits.
