GreenCollar
Developing market-based solutions to improve environmental outcomes
GreenCollar partners with landowners in Australia to implement land-management projects that store carbon or have other environmental benefits while also providing landowners with extra income.
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Sector
Year invested
The company
Australia-based GreenCollar works with landholders—from farmers and ranchers to Indigenous communities—to implement land-management projects that provide supplemental income while benefiting the environment through the sale of Australian Carbon Credit Units and other environmental market credits. Its large and diverse range of projects are administered under an Australian Government framework and are aimed at regenerating native vegetation, improving soil health and increasing biodiversity. GreenCollar’s team works in partnership with landholders throughout the lifecycle of its projects, and its activities include project design, registration, measurement and verification, and marketing of credits.
The opportunity
Ontario Teachers’ acquired a 37% interest in GreenCollar in March 2022. GreenCollar was already the leader in Australia’s well-established and increasingly liquid carbon-credit market, and we saw the opportunity to support its expansion. Global carbon markets are expected to grow exponentially in the coming years amid widespread commitments to reach net zero emissions by 2050, providing strong tailwinds for the investment. What’s more, GreenCollar has expanded beyond tackling carbon, pioneering the creation of new credits focused on improving water quality and biodiversity. Given its growth prospects, in 2023 we increased our position in GreenCollar to a significant majority stake in partnership with GreenCollar co-founder and CEO James Schultz.
The OTPP difference
Investing in GreenCollar underscores our patient capital approach. Many of GreenCollar’s projects are focused on conservation and natural regeneration and take years. The company enters into multi-year agreements with landholders as they work towards these goals. Our long-term investment horizon and capital will support GreenCollar as it expands into new jurisdictions and develops new products and services that contribute to our shared goal of advancing decarbonization and arresting the depletion of natural capital.
The results
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GreenCollar’s portfolio comprises more than 220 projects across Australia has already sequestered or abated 35 million tonnes of CO2e.
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In working with GreenCollar, many farmers, ranchers and Indigenous groups in Australia have an additional source of income, and they can use that revenue stream to benefit their families and their land.
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GreenCollar’s world-first Reef Credits Scheme¹ helps to improve the quality of water flowing into the Great Barrier Reef.
1 Read more about Reef Credits
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