Japanese industrial and food industry conglomerate Mitsubishi Corporation has bought a 40 per cent stake in Australian Integrated Carbon, one of the country's leading nature-based carbon developers.
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Adelaide-based AIC, established in 2016, has become one of the largest project developers in the nature-based carbon market.
AIC is currently developing projects with farmers to increase carbon and improve productivity.
Its activities attracted Mitsubishi's interest after the multi-national identified Australia's expansive landscapes as offering significant potential to generate quality carbon credits.
"This investment falls in step with our sustainability objectives, which include transitioning to a low-carbon society," a Mitsubishi statement said.
The corporation also noted Australia's government-backed carbon market had underpinned its confidence in the investment.
AIC's projects with farmers have the potential to generate a substantial flow of carbon credits (ACCU) which can be monetised through the Australian Government's Carbon Farming Initiative.
AIC was the largest bidder of nature-based carbon credits in the last two Emission Reduction Fund auctions.
With Mitsubishi Corporation's support, AIC's immediate plan is to develop projects delivering up to 100 million ACCUs.
AIC chief executive officer Adam Townley said the partnership offered a significant opportunity to join forces with a global player to originate projects in both the Australian and international carbon markets.
AIC expects its financial and environmental experience will be a critical help for companies seeking carbon neutrality as they transition to a low emission economy.
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Andrew Marshall
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
Andrew Marshall is the group agribusiness writer for ACM's state agricultural weeklies and websites. He is a former editor at The Land and has worked in various Rural Press group roles in Canberra, North Richmond (NSW) and Toowoomba (Qld).
