La Caisse and CEFC Launch A$250M Ag Platform to Generate Carbon Credits for Rio Tinto
Australia’s green bank Clean Energy Finance Corporation (CEFC) and La Caisse (formerly CDPQ) have launched a A$250m (€140m) large-scale, diversified agricultural platform to generate high-quality carbon credits to be sold to mining giant Rio Tinto.
La Cassie is investing A$200m with CEFC contributing A$50m to create the Meldora platform, which will be managed by Australian agriculture and natural capital asset manager, Gunn Agri Partners (GAP).
Meldora has purchased its first asset – a broadacre and irrigation farm of more than 15,000 hectares in Central Queensland. It will combine sustainable agricultural production with large-scale environmental plantings under the Australia’ Carbon Credit Unit (ACCU) regulated scheme.
Under the environmental plantings methodology for ACCUs, native vegetation is planted and maintained for a minimum of 25 years for some projects and as long as a century for others, providing long term carbon sequestration and biodiversity benefits.
Emmanuel Jaclot, executive vice-president and head of infrastructure and sustainability at La Caisse, said: “This investment is a timely step toward advancing resilient, climate-smart agriculture in Australia, while delivering measurable environmental and economic value.
“Teaming up once again with the CEFC and GAP – and with Rio Tinto as a foundation offtaker – reinforces our confidence in this platform’s ability to scale. It reflects La Caisse’s commitment to sustainable land use and our broader net zero ambition, as we position ourselves early in a growing market for high-quality carbon credits.”
CEFC head of natural capital, Heechung Sung, said: “This initiative represents a long term investment in nature and land-based strategies in Australian agriculture. By adopting an integrated sustainable land management model, this strategy can produce high-quality agricultural commodities while also increasing biodiversity, improving ecosystems, and earning carbon revenues through the investment in native landscape restoration.”
Sung added that sustainable agricultural practises across Australian farmland paved the way for a more resilient future with better environmental outcomes for the sector. By utilising a high-integrity method – environmental plantings – that also supports biodiversity, these carbon credits have the potential to command a premium in the market.
“This reinforces the role of nature-based solutions in climate action and underscores the increasing value of sustainable land management and investment in the restoration of trees and vegetation, as we transition to a low carbon economy,” she said.
Gunn Agri’s joint managing director, Bradley Wheaton, said: “The scale of this investment and the scope of the Meldora platform means that it is uniquely ambitious in integrating the restoration of native vegetation in the landscape of an institutional-quality agricultural investment. Through diversification across irrigation, dryland cropping and carbon credit generation, the investment model redefines the future of farming.”
Nick Lenaghan of The Australian Financial Review also reports Rio Tinto signs up for carbon credits from $250m agriculture platform:
Resources giant Rio Tinto has signed up to acquire carbon credits generated by a $250 million farmland portfolio newly established by one of Canada’s biggest pension funds and Australia’s green bank.
The initiative comes amid expectations that carbon farming techniques will play an increasingly important role on the path toward to Labor’s 2035 emissions target. Major emitters, including Rio Tinto, may need to tap the carbon credit market for offsets if they fall short of their obligations to reduce emissions under the federal government’s Safeguard Mechanism.
The Meldora platform, as it will be known, has purchased its seed asset, a broad acre and irrigation farm of more than 15,000 hectares in central Queensland.
Investors in the platform are $550 billion Quebec-based La Caisse, which is contributing $200 million, and the Clean Energy Finance Corporation, which is investing $50 million, with asset manager Gunn Agri on board to operate the platform. The three players have previously teamed up on a separate sustainable agriculture venture.
The Meldora platform will focus on sustainable agricultural activities and large-scale environmental plantings that generate Australian carbon credit units.
Carbon credits backed by environmental planting – such as eucalypts and acacias – are seen as more reliable and of higher integrity. The method involves native vegetation being planted and maintained for a minimum of 25 years on some projects and as long as 100 years for others.
CEFC head of natural capital Heechung Sung said investment into natural capital, including sustainable agriculture, was critical to Australia achieving a low carbon future and its climate ambition.
“We’re targeting assets across Australia’s landscape that can support both farming – so income from traditional commodity production – plus the generation of high-quality environmental planting ACCUs [Australian carbon credit units],” Sung told The Australian Financial Review.
“We’ve focused on this particular methodology because it will generate a more resilient landscape to support farming practices. It is a method that brings local, native species back into the landscape.
“These investments are long duration. You won’t see an outcome immediately. They take many, many years to see the fruits of the early investment.”
Rio Tinto’s projects are among 219 of the country’s highest greenhouse gas emitting facilities required to reduce their emissions through the federal government’s Safeguard Mechanism. Two of Rio Tinto’s facilities emitted below its baseline threshold over 2023-24, effectively allowing it to receive credits from the government.
However, two other Queensland projects – bauxite mining at Weipa and its refinery at Gladstone – fell significantly short of its Safeguard Mechanism requirements, requiring it to surrender carbon credits.
To address such Safeguard Mechanism liabilities, the resources giant is investing into the carbon market to source high-integrity credits, backed by a variety of methodologies including savanna fire management, human-induced regeneration, and environmental planting.
As well, to reduce its reliance on the spot market in carbon credits, Rio Tinto has been investing in carbon developers, such as Australian Integrated Carbon and the Silva Carbon Origination Fund.
Canada’s La Caisse, formerly known as CDPQ, already has considerable interests in Australia with about $15 billion invested. The majority of that – $9 billion – is in infrastructure, including the Port of Brisbane, the Sydney Metro and Transgrid.
Emmanuel Jaclot, its executive vice-president and head of infrastructure and sustainability, said La Caisse was keen to position itself early in a growing market for high-quality carbon credits. The investment into ACCUs is its first in carbon credits globally.
“We believe that the only simple way to sequester carbon is through trees,” Jaclot told the Financial Review.
“Right now, there’s no framework to value this offsetting except what we’re trying to test here with the ACCU market in Australia which is very advanced, very robust and massively auditable and reliable.
“What we want to be very clear about is [that] not every carbon credit offset has the same value that we see here in the ACCUs in Australia.
“The fact we have CEFC and La Caisse working on this should give a lot of comfort that this is the highest standard that we were able to find.”
Marianne Webb of Mining Weekly also reports Rio Tinto backs new A$250m agriculture–carbon venture in Australia:
The Clean Energy Finance Corporation (CEFC) and global investment group La Caisse have launched a A$250-million agricultural and carbon platform in Australia, with Rio Tinto signing on as a foundation offtaker of Australian Carbon Credit Units (ACCUs).
The Meldora platform, managed by Gunn Agri Partners, will integrate sustainable agricultural production with large-scale environmental plantings under the ACCU scheme. La Caisse has committed A$200-million alongside A$50-million from the CEFC, with the platform’s first acquisition being a 15 000 ha broadacre and irrigation farm in Central Queensland.
“Teaming up once again with the CEFC and GAP – and with Rio Tinto as a foundation offtaker – reinforces our confidence in this platform's ability to scale. It reflects La Caisse's commitment to sustainable land use and our broader net zero ambition,” said La Caisse executive VP and head of infrastructure and sustainability Emmanuel Jaclot.
The initiative is designed to produce high-quality carbon credits by restoring native vegetation, which will be maintained for between 25 and 100 years, providing long-term carbon sequestration and biodiversity gains.
CEFC head of natural capital Heechung Sung said the investment represented “a long-term investment in nature and land-based strategies in Australian agriculture,” adding that Rio Tinto’s offtake showed “a commitment to invest in high-integrity carbon credits”.
Meldora’s model is expected to deliver multiple benefits by producing agricultural commodities, generating carbon revenues and enhancing ecosystems. Gunn Agri joint MD Bradley Wheaton said the scale and diversification of the investment “redefines the future of farming".
Earlier today, La Caisse announced that along with CEFC, it is launching a $250m Australian ag and carbon platform and Rio Tinto signed up as offtaker:
The CEFC and global investment group La Caisse (formerly CDPQ) have launched a AU$250 million landmark, large-scale, diversified agricultural platform to generate high-quality Australian Carbon Credit Units (ACCUs), with Rio Tinto as a foundation offtaker.
La Caisse has invested AU$200 million alongside a AU$50 million commitment from the CEFC to create the Meldora platform (Meldora), managed by Australian agriculture and natural capital asset manager, Gunn Agri Partners (GAP). Meldora has purchased its first asset, a broadacre and irrigation farm of more than 15,000 hectares in Central Queensland.
Meldora will combine sustainable agricultural production with large-scale Environmental Plantings under the ACCU scheme, underpinned by a long term offtake from Rio Tinto for part of the ACCUs to be issued, creating both economic and environmental benefits. Under the Environmental Plantings methodology for ACCUs, native vegetation is planted and maintained for a minimum of 25 years for some projects and as long as a century for others, providing long term carbon sequestration and biodiversity benefits.
The investment will promote the integration of sustainable Australian agricultural production with restoration of local species vegetation that generates carbon credits, harnessing carbon sequestration and supporting the efforts of the sector to remain competitive in the global net zero economy.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability, La Caisse said: “This investment is a timely step toward advancing resilient, climate-smart agriculture in Australia, while delivering measurable environmental and economic value. Teaming up once again with the CEFC and GAP – and with Rio Tinto as a foundation offtaker – reinforces our confidence in this platform’s ability to scale. It reflects La Caisse’s commitment to sustainable land use and our broader net zero ambition, as we position ourselves early in a growing market for high-quality carbon credits.”
La Caisse’s investment highlights growing global interest in carbon farming and sustainable agriculture as a valuable asset class.
CEFC Head of Natural Capital, Heechung Sung, said: “This initiative represents a long term investment in nature and land-based strategies in Australian agriculture. It’s a great privilege to again be able to work with La Caisse and GAP to invest in this strategy and alongside Rio Tinto, who have demonstrated with their long term offtake, a commitment to invest in high-integrity carbon credits.”
“By adopting an integrated sustainable land management model, this strategy can produce high-quality agricultural commodities while also increasing biodiversity, improving ecosystems, and earning carbon revenues through the investment in native landscape restoration. ”
“Sustainable agricultural practices across Australian farmland paves the way for a more resilient future with better environmental outcomes for the sector. By utilising a high-integrity method – Environmental Plantings - that also supports biodiversity, these carbon credits have the potential to command a premium in the market. This reinforces the role of nature-based solutions in climate action and underscores the increasing value of sustainable land management and investment in the restoration of trees and vegetation, as we transition to a low carbon economy.”
Gunn Agri Partners’ joint Managing Director, Bradley Wheaton, said: “The scale of this investment and the scope of the Meldora platform means that it is uniquely ambitious in integrating the restoration of native vegetation in the landscape of an institutional-quality agricultural investment. Through diversification across irrigation, dryland cropping and carbon credit generation, the investment model redefines the future of farming.”
ABOUT LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2025, La Caisse’s net assets totalled CAD 496 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
So what is this all about? At the heart of it, La Caisse which is a leader in sustainable land management teamed up once again with Australia's Clean Energy Finance Corporation (CEFC) and Gunn Agri Partners (GAP) to create the Meldora platform, a A$250-million agricultural and carbon platform in Australia, with Rio Tinto signing on as a foundation offtaker of Australian Carbon Credit Units (ACCUs).
Australia is a global leader in agriculture and it has world leading organizations in place to make sure they will continue being a leader in agriculture, incorporating the latest leading sustainable agricultural practices.
From La Caisse's press release:
Meldora will combine sustainable agricultural production with large-scale Environmental Plantings under the ACCU scheme, underpinned by a long term offtake from Rio Tinto for part of the ACCUs to be issued, creating both economic and environmental benefits. Under the Environmental Plantings methodology for ACCUs, native vegetation is planted and maintained for a minimum of 25 years for some projects and as long as a century for others, providing long term carbon sequestration and biodiversity benefits.
The investment will promote the integration of sustainable Australian agricultural production with restoration of local species vegetation that generates carbon credits, harnessing carbon sequestration and supporting the efforts of the sector to remain competitive in the global net zero economy.
Mining giant Rio Tinto signed up to be a foundation offtaker of Australian Carbon Credit Units (ACCUs).
That not only gives the platform immediate credibility, it also allows it to potentially attract other businesses with activities that are eligible offsets projects.
These carbon credit units allow companies to reduce their carbon footprint and they work both ways because if emissions go up, you need to retire the units as Quantas recently did.
Again, La Caisse is positioning itself to be a global leader in sustainable land management as it has already entered into nice deals in the US and now in Australia.
And with that, it will be a major facilitator of the carbon credit market and benefit over the long run.
That's ultimately why La Caisse is backing this platform, it's thinking scale and being a major player in the carbon credit market over the long run.
Moreover, Emmanuel Jaclot, La Caisse's Head of Infrastructure and Sustainability was very clear with the Financial Review:
“We believe that the only simple way to sequester carbon is through trees,” Jaclot told the Financial Review.
“Right now, there’s no framework to value this offsetting except what we’re trying to test here with the ACCU market in Australia which is very advanced, very robust and massively auditable and reliable.
“What we want to be very clear about is [that] not every carbon credit offset has the same value that we see here in the ACCUs in Australia.
“The fact we have CEFC and La Caisse working on this should give a lot of comfort that this is the highest standard that we were able to find.”
Alright let me wrap it up there and congratulate Emmanuel and his team for teaming up again with CEFC and GAP to create the Meldora platform, providing long term carbon sequestration and biodiversity benefits.
Below, can carbon credits be trusted? Companies buy these certificates to offset emissions, but their integrity is being called into question. Business presenter Alan Kohler says the scheme needs to be fixed if Australia is to reach its net-zero emissions target.
Also, Megan Surawski, Manager of ACCU Implementation at the Department of Climate Change, Energy, the Environment, and Water (DCCEEW), provides essential insights into the ACCU scheme, discussing its impact on sectoral decarbonisation and its role in national climate strategies.
Lastly, carbon credits are intended to help neutralize the emissions of Australia's biggest polluters and they're integral to meeting climate targets but there are fresh claims that the nation's most popular emission offset lacks integrity.
The scheme's former watchdog gave evidence to Labor's national conference about the controversial carbon farming method. This report from Ashlynne McGhee and Hannah Meagher (August 2023).
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