The three companies announced on Thursday that they had signed a memorandum of understanding for a major integrated reforestation and carbon farming project in Western Australia’s Whitbelt region, an area the size of Belgium in the state’s southwest.

After completing an extensive initial assessment of the carbon farming project, the parties are now ready to undertake a more detailed feasibility study of harvesting and processing local biomass crops and selected agricultural waste residues to produce low-carbon renewable biofuels.

The project will see marginal farmland replanted with resilient, drought-tolerant native plant species, which aims to improve the environment and generate Australian carbon credits to help offset the future carbon footprints of the three companies.

According to the MoU, the first planting of native trees is expected to take place in the winter of 2023.

The three companies plan to seek collaboration between sponsors, landowners and rural communities as a priority to further diversify the regional agribusiness economy while supporting Wheatbelt farming communities with local employment and investment in regional infrastructure.

"We look forward to working closely with landowners and rural communities, many of whom are our customers, on this important project aimed at supporting the future economy of the Wheatbelt and its community," said ANZ chief executive Shane Elliott .

INPEX CEO, President and CEO Takayuki Ueda said the project is a positive step towards achieving the company's sustainability goals.

"We look forward to delivering this exciting collaboration by working closely with the Wheatbelt communities, landowners and stakeholders and our fellow MoU sponsors ANZ and Qantas," said Mr Ueda.

According to Qantas chief executive Alan Joyce, "the partnership ticks a lot of boxes".

"It's an environmental support in an iconic part of the Australian landscape, creating carbon credits and potentially contributing to a future local SAF industry with all the jobs and opportunities that will come with that," Mr Joyce said.

Also on Thursday, Qantas pledged to cut its carbon emissions by 25 percent by 2030 before reaching its net-zero goal in 2050.

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Already an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.