Cibus Capital has launched its first Australian carbon and nature-based land restoration fund, targeting to raise between A$200-$300m (€112m-€168m) from corporate investors who require carbon credits to meet their obligations under Australian regulations.
The fund, which expects a first close before the end of this year, is targeting delivery of around 11.25m cost-effective Australian carbon credit units (ACCUs) over a 30-year period.
Damon Petrie, consultant director, Cibus, told IPE Real Assets that the price of the ACCUs would be comparable to the spot price for carbons credits today.
Petrie said the fund had been designed to meet the needs of corporations in hard-to-abate industries, such as mining and transportation to access ACCUs to meet compliance obligations.
“We are currently talking to 9 potential investors with a further four or five waiting to enter our data room. The target is to sign up two to three investors by the first close, and raising A$70-A$80m,” Petrie told IPE Real Assets, adding that due diligence was currently underway to acquire its first asset.
He said the fund would own five plantations, each typically covering around 3000-5000ha of degraded land. It will plant native vegetations to restore the land to their natural state before European settlement in Australia some two centuries ago.
Rob Appleby, founder and CIO of Cibus Capital, said: “Cibus Carbon shows that protecting ecosystems and creating value can go hand in hand” strategy helps companies reach net zero while generating wider benefits for communities and investors alike.”
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