This method will expire 31 March 2025
The expiry of the landfill gas method may impact Australian Carbon Credit Unit (ACCU) Scheme participants who are:
- considering registering a new project
- in the process of registering a new project
- undertaking a project that has already been registered
- considering transferring their project to a new or updated method.
Learn more in our guidance for ACCU Scheme participants impacted by the expiry of a method.
Projects under the landfill gas method can earn Australian carbon credit units (ACCUs) by:
updating a landfill gas collection system
re-starting a non-operational system
installing new systems to regulate and combust landfill gas and help reduce methane emissions.
When to use this method
The landfill gas method might be suitable if you:
- upgrade or install a new gas collection system (new gas wells, pipes, pumps to increase volume of gas collection) to collect and combust landfill gas
- use a combustion device (a flare, boiler, combustion engine or other device) with a destruction efficiency of at least 98%.
Legislation
Before you plan or register your project, make sure you read and understand the legislative requirements and the method.
Eligibility
To be eligible under this method, your project must fall under one of the following categories:
- new: install a new gas collection system at a site that's never had one before
- upgrade: a pre-existing system with efficiency records covering the 4 years before the project application date
- recommencing: didn't operate for 3 years before applying to run a project or after 24 April 2014
- transitioning: a project moving from the Carbon Credits (Carbon Farming Initiative) Act 2011 can use methodology determinations listed in Part 3 section 12 of the method
- restarting flaring: a project that previously generated electricity but is switching back to flaring only.
You must also meet general eligibility requirements for the Australian Carbon Credit Unit (ACCU) Scheme.
Relevant legislation
- Part 3 of the method
- Part 3 section 12 of the method
Exclusions
The destruction of emissions from carbon tax waste is excluded under this method. This is waste deposited in landfill between 1 July 2012 and 30 June 2014.
Relevant legislation
- Part 5 of the method
Method requirements
The landfill gas method variation came into effect on 7 May 2021.
The variation:
- extended the crediting period for landfill gas-flaring activities by 5 years (new flaring projects receive a 12-year crediting period)
- changed the default methane proportion for landfill gas from 50% to 42% for new projects
- revised the eligibility requirements for upgrade projects so that new wells must be installed and 4 years of collection efficiency records must be provided at project registration.
If you already have a landfill gas project, you may be able to transfer your project to the varied method. If you don't transfer to the varied method, these changes won't apply to your project.
You can apply to transfer your project through the Client Portal (via Online Services).
Project activities are:
- collecting and combusting methane from decomposing biodegradable organic matter in the landfill
- converting methane to carbon dioxide
- using a combustion device.
The combustion device can be a flare, boiler, internal combustion engine or other device. It must have a destruction efficiency of at least 98%.
The combustion process must be monitored minute by minute. Operation of the combustion device must follow the manufacturer’s instructions.
Relevant legislation
- Part 3 of the method
You might need specialist skills to carry out a landfill gas project. This is due to the complexity and calculations required.
Specialist skills include:
- registered professional engineer
- certified energy manager
- certified measurement and verification professional.
Relevant legislation
- Section 13(f) of the rule
The crediting period for a landfill gas project depends on the project type.
Electricity generation projects: 7 years.
Flaring-only projects: 12 years.
Transferring projects: If you transfer an existing project to the varied method, it can get an extra 5-year crediting period. The extended crediting period starts when the current crediting period for flaring activities ends, provided it hasn't generated electricity for more than 7 years.
Combined projects: Projects can combine flaring and electricity generation activities to a maximum crediting period of 12 years. Electricity generation can occur for a maximum of 7 years.
Restarting flaring projects: 12 years minus the crediting period from when it was a landfill gas project that generated electricity. For example, if a project generated electricity for 7 years and re-entered the scheme as a restarting flaring project, then the crediting period for the restarting flaring project would be 5 years.
Projects under the original 2015 method: 7 years for both flaring and electricity-generating activities.
Relevant legislation
- Part 5 of the Act
- Part 3 section 13A of the method
Abatement is calculated using the net abatement amount. This is the project abatement minus baseline abatement.
Use your own landfill gas calculators or ours to calculate project and baseline abatement:
- landfill gas calculator – for reporting periods pre 1 July 2020
- landfill gas calculator – for reporting periods post 1 July 2020.
For more information, refer to our landfill gas calculator instructions.
Project abatement is the amount of methane combusted from legacy and non-legacy waste, minus the amount of methane oxidised in the near-surface conditions of the landfill if it was not collected during the project.
Legacy waste is defined as waste deposited before 1 July 2012, when the carbon pricing mechanism commenced.
Non-legacy waste is defined as waste deposited after 30 June 2014, when the carbon pricing mechanism ended.
Baseline abatement is the amount of methane combusted from legacy and non-legacy waste during the project, multiplied by the proportion of methane combusted in the absence of the project.
To calculate baseline abatement, you need to determine:
- regulatory proportion
- default baseline proportion
- baseline proportion.
Regulatory proportion
The regulatory proportion reflects the amount of methane combusted to meet quantitative regulatory requirements. Determine it by:
- using regulatory guidelines for landfill in your state or territory
- asking your state or territory environmental regulator (for new projects)
- asking your state or territory environmental regulator and calculating the collection efficiency of the existing landfill gas system (for upgrade projects)
- engaging an independent expert.
Default baseline proportion
The default proportion represents qualitative regulatory requirements. It's 30% or zero. There are no conditions for applying the 30% default, but you can only apply the zero default if you can show that no qualitative requirements apply to the landfill. Examples of qualitative requirements include:
- install or develop a plan to install a landfill gas collection system
- control or reduce methane concentrations
- control, manage or limit odour
- capture landfill gas where practicable.
Baseline proportion
The baseline proportion depends on the type of project:
- new and recommencing projects: the higher of the regulatory proportion or the default proportion
- upgrade projects: the higher of the regulatory proportion, the default proportion or the proportion of methane combusted during the reporting period that would have been combusted without the project.
Relevant legislation
- Part 4 division 3 of the method
- Schedule 1 in the method
- Part 6 of the Act
- Part 6 of the rule
- Section 11 and section 31 of the method
The landfill gas method has specific requirements for offset reports. You must also meet all the general reporting requirements under the ACCU Scheme.
Upgrade projects
Upgrade projects must wait 12 months from the date of upgrade before submitting their first report for a reporting period.
This provides enough data to compare with the period before the upgrade. This comparison shows the improvement in collection efficiency.
Other projects
Other types of projects can submit their first and later reports for a reporting period between one month to 2 years
Monitoring
The landfill gas method has specific monitoring requirements. The requirements, process and standards of monitoring are set out in section 33 of the method.
Relevant legislation
- Part 17 of the Act
- Section 33 of the method
The landfill gas method has specific monitoring requirements. The requirements, process and standards of monitoring are set out in section 33 of the method.
Relevant legislation
- Part 17 of the Act
- Section 33 of the method
You must meet all the general record-keeping requirements of the ACCU Scheme.
We provide you with an audit schedule when your project is declared.
You must provide audit reports according to this schedule.
We schedule at least 3 audits. Extra audits can be triggered.
For more information on audit requirements, refer to our audit information.