CK Asset (01113) and CK Hutchison (00001), through CK Life Sciences (00775) (collectively known as the CK Group), have jointly ventured into the field of regenerative agriculture, primarily investing in carbon sequestration projects. The CK Group’s regenerative agriculture portfolio is expected to sequester approximately 1 million tonnes of carbon dioxide.
Kenneth Kan, Deputy Managing Director of CK Asset and CK Hutchison and President of CK Life Sciences, stated that the CK Group is pleased to participate in the expansion of regenerative agriculture. The group has acquired leases and related rights to over 350,000 hectares of agricultural land in Australia—equivalent to approximately 3.5 times the total land area of Hong Kong—for carbon sequestration purposes. Moving forward, the CK Group will continue to seek high-quality regenerative agriculture projects.
Australia’s Carbon Sequestration Market is Relatively Mature
One of the major global challenges is greenhouse gas emissions, which contribute to global warming and climate change. Under the United Nations Framework Convention on Climate Change (UNFCCC), multiple countries have pledged to achieve net-zero emissions by 2050. To meet this goal, public and private sector organizations worldwide are exploring various solutions to reduce carbon emissions while simultaneously increasing carbon sequestration—such as capturing carbon dioxide from the atmosphere and storing it in trees and soil.
Australia’s carbon sequestration market is relatively mature, offering high-quality carbon sequestration projects along with a well-established regulatory framework. Its carbon credit market has also been experiencing continuous growth.
All carbon sequestration projects in Australia must be registered and approved by the Clean Energy Regulator, a government agency, to receive Australian Carbon Credit Units (ACCUs). The ACCU scheme was established to encourage individuals and businesses to engage in carbon reduction or carbon storage initiatives.
Carbon Sequestration Using Human-Induced Regeneration (HIR)
The CK Group’s regenerative agriculture program will be managed by CK Life Sciences. According to Albert Yu, Vice Chairman and Executive Director of CK Life Sciences, the CK Group’s regenerative agriculture portfolio currently adopts the Human-Induced Regeneration (HIR) method for carbon sequestration. HIR is one of the carbon sequestration methods recognized by the Australian Clean Energy Regulator, utilizing land management practices such as controlled grazing to facilitate the regeneration of native vegetation and forests.
Under the Australian Carbon Credit Unit (ACCU) scheme, a project is awarded one ACCU unit for every metric ton of carbon dioxide equivalent (CO₂-e) avoided or sequestered. These ACCUs can be sold to the Australian government through Carbon Abatement Contracts, with the government having already invested over AUD 1 billion in purchasing ACCUs. Additionally, ACCUs can be sold to private enterprises for voluntary carbon offsetting or to comply with government-mandated emission reduction obligations in Australia.
News source:https://inews.hket.com/article/3849857/長和系｜長實長和長科進軍再生農業%E3%80%80購澳洲逾35萬公頃農地作碳封存用途
