Commonwealth Bank (CBA) has entered a strategic alliance with plant nutrition company RLF AgTech, financing an innovative pilot program that aims to generate soil carbon credits. The transaction is the latest milestone in the bank’s strategy to accelerate the development of high-quality Australian carbon credits.
RLF AgTech, a specialist in plant nutrition, has launched a soil carbon pilot program with Australian farmers who will utilise its Accumulating Carbon in Soil System (ACSS) technology. The pilot aims to demonstrate that ACSS increases soil carbon sequestration and generates Australian Carbon Credit Units (ACCUs).
Each ACCU represents one tonne of carbon dioxide equivalent stored or avoided and are registered with the Clean Energy Regulator.
Through the strategic alliance, CBA has pre-paid for the first ACCUs generated by this pilot program. The funding RLF has received from CBA will assist participating agribusiness operators with the upfront costs associated with registering and managing the carbon projects.