If you have answered yes to all these questions, the
Carbon Credits (Carbon Farming Initiative—Animal Effluent Management) Methodology Determination 2019 may be suitable for your business.
The animal effluent management method provides an incentive for piggeries and dairies to develop new facilities for the treatment of animal effluent by emissions destruction, emissions avoidance or both. Where this treatment can reasonably be expected to result in fewer emissions than if the effluent were treated in an anaerobic pond, it may be eligible to be an animal effluent management project.
This means the project can earn Australian Carbon Credit Units (ACCUs), which can be sold to the Australian Government or the rapidly growing private market.
A project using this method involves using a treatment facility (which becomes known as a project facility when used in an animal effluent management project) to manage organic effluent by emissions destruction, emissions avoidance, or through both these mechanisms.
A facility treats animal effluent by
emissions destruction if it generates and captures biogas from the effluent using an anaerobic digester and destroys the methane in the biogas using a combustion device such as a flare or generator.
A facility treats animal effluent by
emissions avoidance if it removes volatile solids using a solids separation diversion method. It deals with the material aerobically in a way that produces fewer emissions of methane and nitrous oxide than if the effluent were treated in an anaerobic pond, such as an open pond. This is done through a method of stockpiles (solid storage, the storage of solid material in a heaped pile that is not turned) or composting (passive windrow, the storage of solid material in a pile or line of heaped material that is passively managed). More detail on the requirements of these treatments is set out below.
Each treatment facility must treat animal effluent and
may also treat other effluent or waste material consistent with the requirements of the method. However, project proponents should be aware tha t treatment of ineligible material in treatment facilities may result in fewer or no credits being issued for the reporting period.
The method specifies that facilities for an animal effluent management project must not be pre-existing at the date of application, unless you are varying from an older method. However, the following exceptions apply:
Before registering a project under this method, you should understand the basic steps to
participating in the Emissions Reduction Fund.
The animal effluent method has been designed to replace the following methods:
If you have a project under one of the above closed methods, you may be able to vary your project to this method or you can choose to stay under your method.
Under the animal effluent management method, project activities may consist of either or both of the following:
You must read and understand the method and other legislative requirements to conduct an animal effluent management project and earn ACCUs. This includes:
This quick reference guide provides basic information about eligibility criteria and obligations that must be met and demonstrated to the Clean Energy Regulator to earn ACCUs from an animal effluent management project. It includes links from the legislation described above but should not be viewed as an alternative to reading the full legislative requirements.
An animal effluent management project can involve activities that destroy or avoid emissions or activities that do both. Each activity is carried out through a treatment facility that will process animal effluent, with or without other organic effluent, which would otherwise have gone to an anaerobic pond.
Eligible material consists of organic effluent that would normally be treated in an anaerobic pond. Eligible material must be produced by either an eligible animal facility (defined in section 5) or a facility that produces a particular type or types of material as a waste stream.
If the organic effluent is not animal effluent from an eligible animal facility, then it must meet all the following:
If the material does not meet the above, then it will be treated as ineligible material.
Ineligible material consists of material that is not eligible material. In practice, it is expected that ineligible material will be included in project facilities only in small quantities, such as incidental amounts of feed waste, and where the cost or inconvenience of separating it from the eligible material would outweigh the likely loss of abatement credits.
emissions avoidance facility, ineligible material must not be combined with eligible material for treatment or the net credited abatement will be zero, in accordance with subsections 16(2) and 16(3)(a) of the Method. This applies whether or not the project facility also undertakes emissions destruction. Non-compliance can result in no abatement being credited for a reporting period.
At an emissions destruction facility, ineligible material may be combined with eligible material for treatment only if the following conditions are met:
Subsection 21(2) provides that if, during the reporting period, a project facility does not comply in all material respects with regard to the requirements for the use of ineligible material (section 16 of the Method), then the net abatement is taken to equal zero.
The method does not include a cap on the amount of ineligible material that can be added to an emissions destruction project. This is because methane emissions from ineligible material are deducted from the gross abatement. Accordingly, if a higher proportion of ineligible material is treated by a facility, this may result in zero credited abatement.
To be eligible to run a project, you must meet the
general eligibility requirements under the Emissions Reduction Fund scheme and have the
legal right to carry out the project. You must also meet the method specific eligibility requirements. These are:
In addition, there are specific requirements for each type of treatment facility in sections 13 and 14 of the method.
The crediting period is the period a project can apply to claim Australian Carbon Credit Units (ACCUs).
For this method, projects that generate electricity can have up to a 7-year (84 month) crediting period. The crediting period will end once the project enters the 85th calendar month of electricity generation. Projects that do not generate electricity, including projects that flare only, have a 12-year crediting period. Projects can flare only and then generate electricity, but the crediting period will end once the project has generated electricity for 7 years (84 months).
For projects transitioning from another method, for example, the other piggery methods - the calculation of the months of generation includes the calendar months that were part of the project’s crediting period or periods on earlier methods.
A summary of the crediting periods is set out in the tables below:
* The 84 months of electricity generation is cumulative, not necessarily consecutive. Electricity is presumed to begin in the first crediting month and once generated in a month, generation is presumed to continue in subsequent months unless evidence is provided to the contrary. Electricity is considered to be generated in a month if it is generated for 3 or more days in a calendar month.
Abatement is calculated by finding the amount of emissions destroyed or avoided, then subtracting emissions from ineligible material and project emissions, such as from the use of fuel or electricity.
Factors that affect the abatement calculation of
emissions destruction projects include:
Factors that affect the abatement calculation of
emissions avoidance projects include:
All scheme participants must submit project reports to the Clean Energy Regulator throughout the crediting period of their project. Each project report must cover successive periods of no longer than 2 years, referred to as reporting periods.
In addition to the general reporting and notification requirements of the Act and the Rule, the method also sets out the following specific requirements for offset reports:
In addition to the general monitoring requirements of the Act, the method includes several additional monitoring requirements. These relate to:
The method also sets out the consequences for failing to appropriately monitor certain parameters, including how certain parameters must be calculated where there is a non-monitored period.
In addition to the record-keeping requirements of the Act and the Rule, projects must also meet the specific record-keeping requirements in the method.
Section 37 of the method sets out the requirements of a quality assurance plan, which:
The quality assurance plan must be submitted to the Clean Energy Regulator by no later than submission of the first offsets report for the project. If the Clean Energy Regulator notifies you that it is not satisfied with the quality assurance plan, you must amend that plan as soon as practicable after being notified to address the issues identified.
Records that need to be kept include:
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
general audit requirements for participating in the scheme.
Specialist skills may be required to carry out the project in accordance with this method. Examples of specialist skills include:
Section 114 of the
Carbon Credits (Carbon Farming Initiative) Act 2011 (the Act) allows for methods to be revised and varied. This is to ensure methods continue to operate as originally intended. Variations to methods are developed and drafted by the Department of the Environment and Energy. Information on
draft methods and method variations is available on the Department of the Environment and Energy’s website.
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