Source separated organic waste method: 2022 variation

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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-Source Separated Organic Waste) Methodology Determination Variation 2022.

We are also seeking feedback on 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 proposes to make biomethane activities eligible under the source separated organic waste (SSOW) method.

Including biomethane activities will allow projects to earn Australian Carbon Credit Units (ACCUs) for reducing emissions when:

biogas from the breakdown of source separated organic waste is captured, refined into biomethane and combusted
biomethane is used in place of natural gas.

This would provide more opportunities for the waste sector to deliver abatement through the ERF.

Eligible projects under the existing method will be able to transfer to the varied method if they choose to.

Issues to consider

The Minister for Climate Change and Energy 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

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.