Baker & McKenzie has advised R.M. Williams Agricultural Holdings (RMWAH) on a landmark deal that directly engages the carbon market to fund the large-scale restoration of our National Reserve System. The Henbury Conservation Project was launched in the Northern Territory by the Federal Environment Minister on Tuesday 26 July 2011.
RMWAH purchased Henbury cattle station, located around 130km south of Alice Springs for AUD13 million, with the help of the Federal Government, under the Caring for Country program. It is the first time that a private sector company has undertaken such an endeavour, with the intention to fund the conservation from the sale of carbon rights and bio-diversity values. Under the project, cattle will be permanently removed from the property and a conservation program will be implemented, with the expectation of generating up to 1.5 million carbon credits a year, enabling the restoration of the Henbury landscape and protecting several endangered species. This will be achieved through working with the traditional owners.
This is the first time a business is attempting to establish a model for carbon farming and at the same time meet international benchmarks for long-term biodiversity conservation of a rare and under-represented bioregion in Australia’s National Reserve System.
Baker & McKenzie Partner and Global Head of the Firm’s Environmental Markets practice, Martijn Wilder, represented RMWAH and will be chair of the independent committee to oversee the project. Martijn said, “This is a significant deal, as it is the first time private capital has been attracted to such a conservation scheme, that traditionally is the province of philanthropic ventures. It’s the first time a private company has worked with the Government to buy a property to put into the National Reserve System and fund it with carbon rights. It will feed directly into the Government’s carbon farming initiative and carbon pricing policy.”
As legal adviser to R.M. Williams, Martijn noted, “Negotiations with the Federal Government were complex, given that such a project and the associated funding models have never been attempted before. The completion of the transaction was a significant accomplishment in itself and one of which all parties can be very proud of. Hopefully this will pave the way for more such projects in the future.”
The Baker & McKenzie team was led by Partner Martijn Wilder, who led all negotiatons with the Federal Government and the NT Government and advised generally on the project development. He was assisted by Senior Associate, Kate Phillips, on due diligence and land issues, as well as Senior Associate, Ilona Millar on native title issues.
For Henbury images, map, carbon and biodiversity fact sheets see: www.environment.gov.au/parks/nrs
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