Landmark Agri-Deal Sees Commonwealth Bank of Australia Prepay for Carbon Credits

In the first-of-its-kind transaction for Australia’s agriculture sector and the domestic carbon market, the Commonwealth Bank of Australia (CBA) has prepaid for a portion of the carbon credits that will be generated by a carbon credit project in Western Australia.

This AUS$1.7 million transaction supports Forever Wild, an ecological and social enterprise, and Corporate Carbon, a carbon project service provider, to acquire and manage pastoral leases for cattle stations at Narndee Station and Mount Magnet in Western Australia, along with an associated carbon credit project.

Under the financing structure terms, the bank has prepaid for Australian Carbon Credit Units (ACCUs) that will be delivered over a five-year period. Each Australian Carbon Credit Unit represents 1 tonne of carbon dioxide equivalent stored or avoided by a project registered with the Clean Energy Regulator.

Announced on National Ag Day, the transaction is one of the first known private ACCU pre-payment deals in Australia, and supports the development of carbon credit supply from the domestic agriculture sector.

“CBA is having in-depth conversations with agribusinesses about how they can prosper from achieving a more sustainable future,” said Mike Vacy Lyle, CBA Group Executive Business Banking.

Conserving Biodiversity

“We are here to support agribusinesses to advance their decarbonisation journeys and enhance the quality of their natural assets while improving productivity.

“To do this, CBA is building on our track record of supporting agribusinesses with innovative sustainable financing solutions, from Australia's first Agri Green Loan and first Sustainability Linked Loan for the farming sector, to the first sustainability-linked inventory facility.”

More agribusinesses are exploring opportunities across sustainable practices and carbon markets to advance their environmental goals while improving farm assets and productivity.

Fiachra Kearney, Chief Executive Officer of Forever Wild, said the organisation is committed to achieving measurable sustainability improvements while maintaining a productive business.

“We are committed to conserving biodiversity, ecological systems, the cultural heritage of First Nations peoples and the broader community,” Kearney said.

“Agribusinesses need to work towards more regenerative and restorative ways of doing business. It’s all about valuing our natural and cultural assets and understanding that the business case is truly viable. Together we can make it happen.” 

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