12/05/2022 - 16:08

Mitsui invests in Climate Friendly

12/05/2022 - 16:08

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Japan's Mitsui & Co has joined Mitsubishi Corporation, Shell and KKR as major corporate investors in carbon farming operators in Australia.

Mitsui invests in Climate Friendly
Carbon farming projects are mostly developed on degraded farm land. Photo: Carbon Neutral

Japan's Mitsui & Co has joined Mitsubishi Corporation, Shell and KKR as major corporate investors in carbon farming operators in Australia.

Sydney-based Climate Friendly, which has supported 130 carbon farming projects across the country, announced today Mitsui has acquired a one-third shareholding.

It comes one year after Australian investment manager Adamantem Capital invested in Climate Friendly.

Climate Friendly said it has rapidly scaled up the business and developed the technology and platform to further expand its position as a market leader.

This includes working on an integrated farming method it expects to finalise next year.

“This method is expected to make high quality carbon farming projects available to thousands of land managers and enable up to 2.5 billion tonnes of CO2e abatement over the next ten years,” the company stated.

Co-chief executive Skye Glenday said the company has invested in new talent and technology to scale up its operations.

“We are looking forward to accelerating our impact, including through our new integrated farming method, and scaling up rapidly in this critical climate decade to deliver on our carbon abatement target of 100 million tonnes by 2025,” she said.

Mitsui’s investment follows several other big moves in the sector.

Fellow Japanese trading house Mitsubishi Corporation acquired a 40 per cent stake in AiCarbon last year.

Ontario Teachers’ Pension Plan Board acquired a stake in GreenCollar last year, joining private equity giant KKR as a major shareholder.

Shell acquired Sydney-based Select Carbon in 2020.

Another investor with a lower public profile is Melbourne-based Tiverton Agriculture Impact Fund, which last year bought a 65 per cent stake in Perth-based Carbon Neutral.

Carbon Neutral has planted 30 million trees across 15,000 hectares since 2007 and plans a big expansion of its operations, as reported by Business News this month.

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