If you have answered yes to both of these questions, the landfill gas method
may be suitable for your business.
The landfill gas method provides an incentive to install a new landfill gas collection system or upgrade an existing system.
The method allows for new, recommencing, upgrade, transitioning and restarting flaring projects.
The Clean Energy Regulator develops variations to methods for a range of reasons including:
Methods being varied or methods under review are published on the
Department of Industry, Science, Energy and Resources (DISER) website and our
method consultation page.
method variations page provides additional information about how a method variation might affect an existing project.
The landfill gas method variation came into effect on 7 May 2021. The method has been varied to:
If you have a current landfill gas project, you may be able to transfer your project to the varied version of the method. Apply to transfer your project through the
If you do not transfer to the varied method, these changes will not apply to your project.
You must read and understand the method and other legislative requirements to conduct a landfill gas project and earn Australian carbon credit units (ACCUs). This includes:
The crediting period is the period of time a project can apply to claim ACCUs.
Under the landfill gas methods, projects that generate electricity have up to a 7-year (84 month) crediting period. The crediting period will end once the project enters its 85th calendar month of electricity generation.
Projects that do not generate electricity and only flare landfill gas, have a 12-year crediting period.
Existing projects transferring to the varied method can get an additional 5 years crediting period from the end of their current crediting period for flaring activities if they have not generated electricity for more than 84 months.
Projects can combine flaring and electricity generation activities with a maximum crediting period of 12 years, of which up to 7 years (84 months) may include electricity generation. As above, the crediting period will end if the project enters its 85th calendar month of electricity generation.
A restarting flaring project has a crediting period of 12 years, minus the length of its crediting period when it was previously a landfill gas project that generated electricity. For a project that generated electricity for 7 years and later re-entered the scheme as a restarting flaring project, this would result in a 5-year crediting period for the restarting flaring project.
Projects that remain on the original 2015 landfill gas method will continue to have the original 7-year crediting period for both flaring and electricity generating activities.
Relevant section of the Act:
Relevant section of the Method:
There are general eligibility requirements in the Act, which include:
Types of projects are eligible under this method include:
A project involves collecting and combusting methane generated by decomposing biodegradable organic matter in the landfill, and converting it to carbon dioxide.
The methane must be combusted using a combustion device. This may be:
Relevant sections of the Method:
The method does not credit the destruction of emissions from carbon tax waste, which is waste deposited in landfill between 1 July 2012 and 30 June 2014. It only credits the destruction of emissions from legacy and non-legacy waste:
Abatement is calculated by working out the net abatement amount which is project abatement minus baseline abatement.
Project abatement is calculated as the amount of methane combusted from legacy and non-legacy waste, minus the amount of methane that would have been oxidised in the near-surface conditions of the landfill if it was not collected during the project.
Part 4 Division 3 of the method deals with the calculations involved in determining project abatement.
Baseline abatement is the amount of methane combusted from legacy and non-legacy waste during the project, multiplied by the proportion of methane that would have been combusted in the absence of the project.
Part 4 Division 4 of the method deals with calculating baseline abatement. Some of the major steps involved in calculating baseline abatement include determining:
regulatory proportion reflects the amount of methane that would have to be combusted to meet quantitative regulatory requirements.
Schedule 1 in the method describes how to determine this proportion. It can be determined by:
default proportion represents qualitative regulatory requirements, and is either 30 per cent or zero per cent. There are no conditions for applying the 30 per cent default, but the zero per cent default can only be applied if you can demonstrate that no qualitative requirements apply to the landfill. Examples of qualitative requirements include:
baseline proportion depends on the type of project.
Further guidance about how to determine project and baseline abatement can be found in the
guide to the landfill gas method located under Tools and Resources.
The Emissions Reduction Fund (ERF) Landfill Gas Calculator (the Calculator), which is designed to assist in calculating project and baseline abatement, is being updated to accommodate the changes resulting from the 2021 LFG variation.
As specified in section 6 of the Method, where factors or parameters are defined by another document, projects must use the other document as in force at the end of the reporting period.
The NGER Measurement Determination was updated on 1 July 2020, in which factors and parameters used to calculate abatement have changed. Two versions of the Calculator have been developed to reflect the previous and current NGER Measurement Determinations:
Please note these calculators contain macros.
In addition to the reporting requirements of the Act and the Rule, the method also sets out the following method-specific requirements for offset reports:
Relevant section of the Rule:
In addition to the general monitoring requirements of the Act, projects must meet specific monitoring requirements in the method. Section 33 lists these requirements along with the process for monitoring and the standard to which it must adhere.
This method does not have any record-keeping requirements that are additional to the general record keeping requirements of the Act and the Rule.
Relevant section of the Rule
Audits are an important requirement of the Emissions Reduction Fund and provide assurance over the integrity of Australian carbon credit units (ACCUs). All projects receive an audit schedule when the project is declared and must provide audit reports according to this schedule. A minimum of three audits will be scheduled and additional audits may be triggered. For more information on the audit requirements, see the Act, the Rule and the
audit information on our website.
Audits during an extended crediting period
Once you submit an application to transfer your project, the Clean Energy Regulator will be in touch to discuss appropriate auditing during the extended crediting period.
Specialist skills may be required to carry out the project with the method. Examples of specialist skills include:
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