Australia's first Carbon Farming Initiative deal takes off
Monday, 30 July 2012
Baker & McKenzie has advised RM Williams Agricultural Holdings on the first deal to occur under the Australian Government's new Carbon Farming Initiative.
The deal relates to RM Williams' Henbury Station property in the Northern Territory, which has the capacity to earn carbon credits by removing cattle from the area to encourage revegetation. Qantas has signed a deal to buy up to 1.5 million offset credits over five years, although according to Reuters reports, the exact quantum will depend on the take-up by Qantas customers under the airline's voluntary carbon offset programme.
It is intended that up to 1.5 million tonnes of greenhouse gases will be sequestered on the station each year.
The Baker & McKenzie team was led by partner Martijn Wilder and senior associate Simon Greenacre. The Qantas side of the deal was transacted entirely in-house.