The latest investment move from JERA in Japan;
JERA Co., Inc. (JERA), a global energy leader and Japan’s largest power generation company, today announced an investment of AUD$25 million in the Silva Carbon Origination Fund (the Fund) – one of Australia’s largest high integrity, nature based carbon credit funds, notable for integrated reforestation and sustainable agriculture.
The Fund, which aims to raise $250 million to generate high integrity carbon credits to support global transition to a lower carbon future, has already raised $100 million from its foundation investors.
Silva Capital, a joint venture between investment managers Roc Partners and C6 Investment Management, will lead the Fund’s land reforestation initiatives, generating Australian Carbon Credit Units (ACCUs).
The Fund focuses on development of integrated agricultural and environmental planting projects to generate high integrity ACCUs at scale in Australia. Comprehensive carbon sequestration through environmental planting works to help improve soil quality and biodiversity and is designed to complement and benefit farming activities.
JERA, which helps to ensure Japan’s energy security by producing 30 per cent of the nation’s total electricity, is one of the world’s largest buyers of liquified natural gas (LNG). JERA has participated in Australian LNG projects through its subsidiary JERA Australia and related companies, and is working actively to reduce and offset its Australian carbon emissions.
JERA Australia CEO and Managing Director Gaku Takagi said the Fund’s practical combination of quality environmental planting projects with ongoing sustainable farming was a major attraction for investment by JERA.
“The combination of ongoing farming activities with habitat and biodiversity restoration benefits both local communities and companies like JERA, which are committed to responsible carbon abatement and robust carbon credit methodologies,” he said.
“Silva Capital’s aim to balance agricultural productivity with environmental stewardship is a model that supports both economic and ecological sustainability.”
He said that JERA’s investment in the fund aligns with the company’s Net Zero Emission 2050 goal. The high integrity ACCUs generated are expected to support JERA’s endeavours to decarbonise its Australian LNG projects through a combination of direct abatement and carbon offsets.
This investment would also help JERA Australia to fulfill obligations to joint venture partners to satisfy requirements of the Australian Government’s Safeguard Mechanism – requiring large emitting facilities to reduce emissions annually from a mandated baseline level.
Silva Capital Co-Managing Director Raphael Wood said the Fund was a pioneering platform for development of high integrity, nature based carbon credit projects.
“The Silva Carbon Origination Fund provides benefits to local communities and to investors and as the Fund manager, we welcome the involvement of JERA as Japan’s biggest energy company and a global player in the LNG sectors,” he said.
“JERA joins other quality partners in projects that will reintroduce forests on cleared lands, incorporating a diverse range of native plant species, and designed to maintain the agricultural productivity of the land which enables concurrent agricultural activities without compromising environmental goals.”
Mr Wood said that respectful and genuine engagement with local communities on developing projects that met their needs and aspirations was key to the Fund’s operation.
“Our goal is mutually beneficial outcomes,” he said. “Integrating sustainable agriculture with carbon sequestration can be successful for both the local communities we operate in, and the companies that choose to invest in the creation of high integrity carbon credits.”
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