- Environmental enterprise Greening Australia has partnered with CBRE to increase its national land bank by 330,000 hectares to meet the demand for carbon offsets
- Greening Australia plans to acquire the land through a combination of leases, licences and acquisitions to plant up to 500 million native trees to meet corporate demand to achieve net-zero emissions
- The organisation said the appetite to invest in environmental offsets including carbon sequestered through large-scale tree plantings, has increased substantially amid corporate demand to achieve zero net emissions targets
- The partnership aims to, among other projects, provide stable and consistent returns via the production of Australian Carbon Credit Units
- “We see an opportunity to improve the environment and turn underperforming sections of properties into profit generating assets,” CBRE agribusiness associate director Phil Melville said
Environmental enterprise Greening Australia has partnered with CBRE to increase its national land bank by 330,000 hectares to meet the demand for carbon offsets.
Greening Australia, which began conserving and restoring land in 1982, plans to acquire the land through a combination of leases, licences and acquisitions to plant up to 500 million native trees to meet corporate demand to achieve zero net emissions.
The organisation said the appetite to invest in environmental offsets including carbon sequestered through large-scale tree plantings, has increased substantially amid corporate demand to achieve zero net emissions targets.
“The scale of the challenge means we need to leverage the best capabilities,” Greening Australia CEO Brendan Foran said.
“CBRE will assist us in meeting our ambitious targets but also reward landholders for their role in improving the environment.”
The partnership aims to, among other projects, provide stable and consistent returns via the production of Australian Carbon Credit Units (ACCU’s).
Prices for ACCU offsets have risen 11 per cent calendar year-to-date, reaching $18.40/t at the end of March, according to Reputex, with prices potentially doubling by 2030.
With a goal of 3.3 million tonnes of carbon sequestered per annum, the portfolio could secure over three million credit units each year, potentially generating over $60 million a year according to the current spot price.
Last financial year the company posted $31.2 million in total revenue, which it acquired through a variety of environmental credits.
CBRE agribusiness associate director Phil Melville said the appointment recognised CBRE’s extensive rural network as well as aligning with the firm’s own global commitment to significantly reduce greenhouse gas emissions from both its own operations and the properties it manages for investors and occupiers.
“CBRE is committed to using its expertise, resources and market influence to help our clients reduce the emissions their properties generate and to applying best practices that improve the sustainability of our own operations,” Melville said.
“Through this new partnership we can extend these efforts to help ensure Greening Australia achieves its targets to restore Australian landscapes and undertake environmental planting projects that provides tangible and long-lasting benefits,” he continued.
“We see an opportunity to improve the environment and turn underperforming sections of properties into profit generating assets,” Melville concluded.