Carbon

The firm wants to build up to a portfolio worth £100m and is targeting a 10-12% IRR.

Despite the segment’s leading contribution, it experienced a near 10% decline on H1 2022 figures while NBS removals credits account for less than one third of its total.

QIC acquired Stuart’s Creek, a beef cattle property with established carbon sequestration properties, from Packhorse via its Queensland Natural Capital Fund.

Portfolio manager Robert Hagler says the longer rotations and lower harvesting intensity possible under its Forest Climate Solutions Fund allow for timberland to be managed ‘more gently’.

Eastwood Forests’ first fundraise has shown how powerful the carbon story around timberland investments has become, including with Japanese LPs.

Climate change and energy minister Chris Bowen said decarbonization plans will be set for agriculture and five other sectors, without sector-specific emissions reduction targets being imposed.

The 15-year closed-end fund has been seeded with capital from 10 Japanese companies including Sumitomo Forestry, Japan Post Holdings, and Sumitomo Mitsui Banking Corporation.

The manager has set its sights on building out up to 150ha of strategically located greenhouses across Europe that will repurpose waste heat, energy and CO2.

Move comes ahead of potential intervention by regulatory agencies.

‘There isn’t resistance out of principle’ from Australian superfunds to investing in agriculture, but barriers remain, says CEFC’s Heechung Sung.