- RLF AgTech (RLF) enters a strategic carbon alliance deal with Commonwealth Bank (CBA)
- CBA will fund an RLF-led soil carbon program and RLF will also receive $1 million in funding from the bank to see the four-season project through to its end
- The goal is to prove the validity and efficacy of the soil carbon program so as to develop the market for soil-based ACCUs in Australia
- Shares in RLF last traded at 17 cents
RLF AgTech (RLF) has entered a strategic carbon alliance deal with Commonwealth Bank (CBA) to boost the company’s carbon credits program.
The company has been seeking to roll out its carbon-in-soil strategy to generate Australian carbon credit units (ACCUs) for its own operations – and now it’s sold the first 50,000 units to Commonwealth Bank.
Commonwealth Bank will fund an RLF-led soil carbon program and RLF will also receive $1 million in funding from the bank to see the four-season project through to its end.
The overall goal is to prove the validity and efficacy of the soil carbon program so as to develop the market for soil-based ACCUs in Australia.
High-quality soils naturally absorb a certain degree of atmospheric carbon and for this reason, agricultural companies have been showing increased enthusiasm for ACCU schemes that treat carbon-in-soil as a carbon offset.
Offsets broadly aim to mitigate the emissions load of company operations by having those companies invest in ecological programs, with tree planting being the most well-known example.
ACCUs can be traded by companies between other holders to rebalance ecological investment requirements under State and Federal legislation.
“Because soils have such a large storage capacity, holding three times the amount of carbon currently in the atmosphere and almost four times the amount held in living matter, soil carbon has a very important role to play in the world’s journey to net zero,” RLF CEO Ken Hancock said.
“If our relationship with CBA proves out the potential of our technology to generate carbon credits in the Australian grain industry, we look forward to deploying our products globally to make a significant impact.”
Commonwealth Bank Managing Director of Global Carbon Dr Yasmina Elshafeis reiterated Mr Hancock’s positive sentiment.
“Soil carbon is a strategic focus for CBA because we want to enable our agricultural client base to access carbon markets in a way that enhances and complements what they’re already doing and doesn’t out-compete for agricultural land,” she said.
“[Commonwealth] is supporting the pilot by prepaying for carbon credits .. the upfront funding we’re providing will assist participating farmers with covering the costs of registration, management and measurement that are associated with the project.”
Shares in RLF last traded at 17 cents.