The Clean Energy Finance Corporation (CEFC), an Australian government-owned green bank, and CDPQ, a global investment group, have joined forces to launch a strategic partnership focused on agricultural land in Australia. The partnership’s first move is the acquisition of a farm dedicated to row crops in New South Wales, signaling their commitment to sustainable agriculture. With an initial investment of AUD 200 million (CAD 178 million) over the next three years, the partnership aims to acquire assets that will be managed by Gunn Agri Partners, a leading Australian farmland manager, in which CDPQ and the CEFC will become minority shareholders.
Gunn Agri Partners, founded by agricultural and investment industry professionals with extensive experience in institutional farm ownership and management, has a strong sustainability focus in its agricultural asset management approach. The firm aims to establish a specialized operational team in local communities where assets are. By partnering with CDPQ and the CEFC, Gunn Agri Partners will enhance its position in the Australian market and promote sustainable land practices.
The initial asset acquired under this partnership spans 1,200 hectares and includes arable crops, grazing areas, and conservation zones. The favorable weather conditions in the region allow for a variety of summer and winter cropping options, including cereals, oilseeds, pulses, and dryland cotton.
The partnership between CEFC and CDPQ demonstrates the potential for institutional capital to drive the decarbonization of agriculture. Heechung Sung, Head of Natural Capital at the CEFC, emphasized the significant untapped potential for investment in sustainable agriculture as part of a net-zero economy. By providing much-needed capital, this collaboration supports farmers in their decarbonization efforts, boosts production, and enhances global competitiveness. Additionally, the partnership will showcase market-leading sustainable land practices to farmers across various production and climate regions, offering a pathway to reduce their carbon footprint.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ highlighted the partnership’s contribution to the decarbonization of the agricultural sector through their Sustainable Land Management strategy. CDPQ aims to invest in land-focused assets with long-term positive environmental impact and the highest environmental, social, and governance (ESG) standards. By leveraging the expertise of Gunn Agri Partners, CDPQ and CEFC will aggregate and manage farmland in Australia in line with regenerative agriculture practices. CDPQ’s Sustainable Land Management initiative, established in 2020 within its Infrastructure portfolio, demonstrates the organization’s commitment to investing in assets that have a positive environmental impact.
Bill Gunn, Founding Chairman of Gunn Agri Partners, expressed pride in the company’s investor-aligned approach and its commitment to sustainable asset management. Gunn Agri Partners has a successful track record in managing grazing pastures, forests, row crops, and permanent crops, with a focus on sustainable practices.
The CEFC, as a specialist investor, plays a crucial role in advancing Australia’s transition to a low-emissions future. With a strong investment track record, the CEFC aims to accelerate the country’s path to net-zero emissions by 2050. By collaborating with investors, innovators, and industry leaders, the CEFC fills market gaps and stimulates substantial new investment in areas that have the greatest impact. The CEFC operates on behalf of the Australian Government, with a commitment to deliver positive returns for taxpayers.
CDPQ, a global investment group managing funds for public pension and insurance plans, focuses on constructive investments that generate sustainable returns over the long term. With expertise in major financial markets, private equity, infrastructure, real estate, and private debt, CDPQ partners with organizations to drive performance and progress. As of December 31, 2022, CDPQ’s net assets totaled CAD 402 billion.
The strategic partnership between CEFC and CDPQ, facilitated by Gunn Agri Partners, marks an important step towards sustainable agriculture in Australia. By combining their expertise and resources, these organizations are well-positioned to drive the decarbonization of the agricultural sector, promote regenerative farming practices, and support Australia’s transition to a low-emissions future.
Photo by Elsa GUYADER on Unsplash
