Overview
The Emissions Reduction Assurance Committee (ERAC) is seeking feedback on a draft methodology variation under the Emissions Reduction Fund (ERF):
- Carbon Credits (Carbon Farming Initiative-Alternative Waste Treatment) Methodology Determination Variation 2022
We are also seeking feedback on the proposed amendments to the Carbon Credits (Carbon Farming Initiative) Rule 2015 (the CFI Rule) to support the method variation. These amendments would ensure an extended accounting period only applies to relevant project types.
Proposed changes
The draft variation would change eligible activities under the alternative waste treatment (AWT) method. It proposes to:
- include biomethane activities
- remove enclosed composting as an eligible waste treatment technology.
Including biomethane activities will allow projects to earn Australian Carbon Credit Units (ACCUs) for reducing emissions when:
- biogas from the breakdown of mixed solid waste is captured, refined into biomethane and combusted
- biomethane is used as in place of natural gas.
This would provide more opportunity for the waste sector to deliver abatement.
Eligible projects under the existing method will be able to transfer to the varied method if they choose to.
Removing enclosed composting as an eligible activity reflects the findings of the 2021 AWT crediting period extension review. The review identified a potential scheme integrity risk from projects that use enclosed composting and then stockpile or deposit their compost product to landfill.
Issues to consider
The Minister for Industry, Energy and Emissions Reduction considers a range of factors when deciding whether to vary a method. This includes whether the method’s activity could have any adverse social, environmental or economic impacts. We are seeking your feedback on whether these types of impacts could arise from the draft method variation.
Consultation documents
- Draft Carbon Credits (Carbon Farming Initiative-Alternative Waste Treatment) Methodology Determination Variation 2022 [1.4MB PDF] [3MB DOCX]
- Draft Carbon Credits (Carbon Farming Initiative-Alternative Waste Treatment) Methodology Determination Variation 2022 Explanatory Statement [825KB PDF] [164KB DOCX]
- Draft Simple Method Guide for Biomethane Projects [1.5KB PDF] [2MB DOCX]
The draft biomethane simple method guide contains information on undertaking biomethane projects under the draft variation and existing methods already varied to include biomethane. It also contains information on the proposed amendments to the CFI Rule.
Finalising the method
The Clean Energy Regulator (CER) and the ERAC will consider any submissions provided by the due date in finalising the draft method variation.
