JERA backs Australian carbon fund with AUD25m investment

Japan’s largest power generation company, JERA Co., Inc., has announced an AUD$25 million investment in the Silva Carbon Origination Fund, one of Australia’s largest nature-based carbon credit initiatives focused on integrated reforestation and sustainable agriculture.

The fund, managed by Silva Capital — a joint venture between Roc Partners and C6 Investment Management — aims to raise AUD 100 million from foundation investors to date.

The investment vehicle focuses on combining environmental planting with ongoing agricultural operations. By reintroducing native plant species to cleared land, the projects aim to sequester carbon, enhance biodiversity, and improve soil quality without reducing agricultural output.

JERA, which supplies approximately 30 per cent of Japan’s electricity and ranks among the world’s largest buyers of liquefied natural gas (LNG), maintains extensive holdings in Australian energy developments through its subsidiary, JERA Australia.

The acquisition of high-integrity ACCUs aligns with JERA’s target to achieve net-zero emissions by 2050. The credits will support direct abatement efforts across its Australian LNG assets while helping satisfy obligations under the Australian Government’s Safeguard Mechanism, which mandates annual emissions reductions for large industrial facilities.

Gaku Takagi, CEO and Managing Director of JERA Australia, highlighted that the fund’s dual approach of maintaining farming productivity alongside habitat restoration was central to the investment decision. He noted that the model delivers benefits for local communities while providing responsible carbon abatement pathways for industrial operations.

Raphael Wood, Co-Managing Director of Silva Capital, welcomed JERA’s participation, stating that genuine community engagement and dual-use land management remain fundamental to the fund’s strategy. He added that combining agricultural productivity with nature-based carbon removal creates a sustainable framework for both local landholders and institutional investors.

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