BHP, Rio Tinto and Qantas will invest a total of A$80 million ($52.7 million) as early-stage investors in an Australian carbon credits fund that aims to invest in land reforestation projects. The fund, managed by Silva Capital — a joint venture between Roc Partners and C6 Investment Management — aims to raise A$250 million to generate and manage Australian carbon credit units (ACCUs) from reforestation initiatives.

ACCUs are issued by the Australian government’s $3 billion Emissions Reduction Fund (ERF) to help the country slash its carbon emissions by 43 percent from 2005 levels by 2030.

The ERF issues credits mostly to projects that avoid deforestation, regenerate native forests or collect methane from landfills. Those projects can sell credits to the government or to companies looking to meet their emissions-cutting targets.

Companies operating in high-emitting industries like mining and aviation are increasingly looking to buy carbon credits as they seek to buy offsets for their emissions.

“This fund represents not only an investment in carbon abatement but a significant milestone in Australia’s carbon market, that will, importantly, support the long-term success of our farming communities and nature repair,” Raphael Wood, Silva Capital’s co-managing director, said in a statement. 

(Reporting by Renju Jose in Sydney; Editing by Himani Sarkar)