Rio Tinto to Buy Carbon Credits from New Australian Platform
(Bloomberg) -- Rio Tinto Group has signed up as a future buyer of carbon credits generated by a new platform in Australia.
The Melbourne-based mining giant will be “a foundational offtaker” for the Meldora platform, according to a statement on Monday. The facility has been launched with an investment of A$200 million ($131 million) from Canadian pension fund La Caisse and A$50 million from the Australian government’s Clean Energy Finance Corp.
Firms buy carbon credits to offset their emissions, which are usually hefty in the case of mining companies. Rio’s goal is to halve its scope 1 and 2 emissions by 2030 from 2018 levels, with credits accounting for up to 10% of the reduction.
The Meldora platform has purchased its first asset, a farm in Queensland of over 15,000 hectares, that will practice sustainable agriculture and carbon capture and storage.
Still, the use of carbon credits remains controversial for allowing companies to operate without outright cuts to their emissions.
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