Operators of landfill facilities and Local Government can now reap the benefits of Australia’s emerging carbon markets by reducing emissions from accumulated waste thanks to new opportunities available under the Gillard Government’s Carbon Farming Initiative.
The Carbon Farming Initiative is now operational, and with it a series of supporting methodologies to help Local Governments, farmers and land managers seize opportunities for generating extra revenue in the form of carbon credits, while reducing carbon pollution.
Local Governments are set to benefit from the finalised Carbon Farming Initiative methodology for the capture and combustion of landfill gas from legacy waste – meaning waste deposited prior to 1 July 2012.
The methane gas emitted from landfills as waste decomposes is a potent greenhouse gas. Landfill operators’ efforts to reduce these emissions can make a significant contribution to meeting our challenge of reducing Australia’s carbon pollution.
Many landfills are already taking action to reduce methane emissions. Even so, the waste sector produces around 15 million tonnes of carbon pollution each year – equivalent to three per cent of Australia’s emissions.
As part of the Federal Government’s Clean Energy Future plan to cut carbon pollution, landfill facilities with direct emissions of 25,000 tonnes of carbon dioxide equivalent per year will be liable under the carbon price, when it comes into effect on 1 July 2012.
Landfill operators can reduce their carbon price liability or in some cases avoid liability all together by reducing their emissions below the threshold. Activities that reduce emissions include capturing landfill gas to generate electricity, flaring methane, waste diversion, recycling and composting.
In general, companies can only use Carbon Farming Initiative credits to cover up to five per cent of their emissions under the carbon pricing mechanism. The Government however has agreed that landfill facilities will be able to use Carbon Farming Initiative credits to meet 100 per cent of their carbon price obligations.
It is estimated that the waste sector could generate enough Carbon Farming Initiative credits to meet the sector’s entire carbon price liability in the period to 2020.
The Carbon Farming Initiative landfill gas methodology has been developed in close consultation with local government and industry and provides clear guidance for projects to create carbon credits by capturing these potent methane emissions from legacy waste or destroying it through flaring.
It can be applied to both new and existing projects, including those that might be transitioning from other offset schemes such as the Federal Government’s Greenhouse Friendly program and Greenhouse Gas Reduction Scheme.
There is also help at hand for local councils, to assist them to work out whether they are liable under the carbon price (and if so, what they will need to do to meet their obligations), and what opportunities there are under the Carbon Farming Initiative.
For details on the Carbon Farming Initiative or to float ideas for new projects aligned to the new landfill gas methodology, visit www.climatechange.gov.au/cfi.
