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CEFC partners with CDPQ on $200m sustainable agricultural platform

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4 minute read

CDPQ and the Clean Energy Finance Corporation (CEFC) have joined forces to create a sustainable agricultural platform aimed at reducing emissions and improving sustainability in the sector.

The platform, titled Wilga Farming, is set to receive a significant boost with a $150 million investment from global investment group CDPQ, accompanied by an additional $50 million investment from CEFC. This infusion of capital is expected to greatly support the decarbonisation of Australian farming while also enhancing farm production.

The platform will be managed by Gunn Agri Partners, a mid-market sustainable agriculture manager with a strong commitment to improved sustainability across production systems and landscapes.

In addition to the investment, CDPQ and CEFC have also acquired a minority stake in Gunn Agri Partners, allowing them to shape future sustainable agriculture and natural capital strategies.

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Commenting on the partnership, CEFC head of natural capital investments Heechung Sung said: “This CDPQ investment is a welcome addition to the Australian market, to demonstrate the potential for institutional capital to drive the decarbonisation of agriculture.

“We believe there is enormous untapped potential for new investment in a sustainable future for agriculture as part of a net zero economy.”

Ms Sung expressed confidence that the platform will showcase market-leading sustainable land practices to farmers across multiple production and climate regions, offering a pathway to reduce their carbon footprint.

Similarly, Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ, emphasised the importance of the partnership in contributing to the decarbonisation of the agricultural sector.

“The CEFC and CDPQ’s experience — combined with Gunn Agri Partners’ recognised expertise as a land operator — will enable us to aggregate and manage farmland in the attractive Australian market, in line with regenerative agriculture practices,” said Mr Jaclot.

The platform aims to accelerate the adoption of low-emissions technologies, carbon sequestration on agricultural land, and measures to improve climate adaptability. Moreover, it is expected to demonstrate the benefits of regenerative farming and help position the sector to capture economic opportunities in the clean energy transition.

The agriculture sector in Australia is a major player in the country’s natural capital, accounting for 55 per cent of land use. It contributes around 12 per cent of goods and services exported and produces approximately 17 per cent of national emissions.

“The long-term impact of climate change on the agriculture sector and its critical role in food and fibre production is an important problem to tackle in a world that needs to rapidly decarbonise and address broader nature-positive outcomes,” Ms Sung said.

The platform has already secured The Glen, a 1,200-hectare property near Delungra in northern NSW, as a seed asset. Initiatives to reduce emissions at The Glen include reducing the use of synthetic fertilisers, improving landscape function to slow overland water flows, and implementing grazing management and soil carbon improvements.

The CEFC is also an investor in the Gunn Agri Transforming Farming Platform, alongside the Kempen SDG Farmland Fund, which uses data-driven practices, expert advice, and regenerative farming methods to optimise yield productivity, reduce carbon emissions, and sequester carbon.

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.