CBA Partners With Greening Australia, Eyes Carbon Sequestration Projects

Commonwealth Bank of Australia (CBA) has made a minority equity investment in Nindethana Seed Service (Nindethana) to support the expansion of Australia’s native seed market and help meet growing demand from carbon sequestration and biodiversity restoration projects.

The investment also sees CBA enter into a strategic partnership with Greening Australia Limited, a not-for-profit environmental enterprise and majority shareholder of Nindethana. As part of this partnership, CBA and Greening Australia are collaborating on a broad program of work to explore opportunities to support Australia’s carbon market with a focus on carbon credit supply.

In a statement CBA said native seed is a crucial input for large-scale land restoration projects, maintaining ecosystem function and diversity, providing habitat for native wildlife and boosting landscape resilience. Through native environmental plantings, native seed can unlock the supply of high-quality, high-integrity carbon credits. Demand for native seed significantly outstrips supply at present.

Nindethana is Australia’s largest native seed merchant, with facilities in WA and NSW. The company works with seed collectors across the country and is well-placed to help develop and expand Australia’s native seed industry, including supporting the development of existing Indigenous-owned native seed businesses.

Andrew Hinchliff, CBA Group Executive Institutional Banking & Markets, said the bank’s investment in Nindethana aligned closely with its commitment to supporting the development of high-integrity carbon credits, fostering economic opportunities for local communities and helping clients manage climate change risk.

“As the world focuses on meeting carbon reduction targets, the issues of biodiversity and natural capital are increasingly in the spotlight. Australia’s unique ecology and vast land space give us the potential to play an important role in this global dynamic.

“Our investment in Nindethana will help to address current supply constraints in native seed, as demand grows from both carbon abatement projects and organisations seeking to help restore land that has been impacted by natural disasters or heavy industrial usage,” Hinchliff said.