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Climate Solutions Fund > How it works > Explore project types > Source separated organic waste projects

Source separated organic waste projects

The benefits

A source separated organic waste project processes organic waste to reduce the amount of methane released into the atmosphere. This reduction in emissions earns Australian carbon credit units (carbon credits).

Separating and treating organic waste has a number of benefits:

The benefits

A source separated organic waste project processes organic waste to reduce the amount of methane released into the atmosphere. This reduction in emissions earns Australian carbon credit units (carbon credits).

Separating and treating organic waste has a number of benefits:

 

Diversified revenue

Carbon credits provide another income stream for your business.

 

Reduce landfill

Separating organic waste reduces the amount of waste entering landfills.

 

Create bioproducts

Convert waste into useful bioproducts, such as compost or mulch.

 

Environmental action

Be recognised for your contribution to Australia’s emissions reductions.

Help with these projects

 
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The basics

Introduction to Source separated organic waste projects, how they work and their eligibility requirements.

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The details

Further information and resources on source separated organic waste projects can be found on the Emissions Reduction Fund page.

 


How these projects work

Organic matter decomposing in landfills produces gases such as methane, a potent greenhouse gas, which are released into the atmosphere. A source separated organic waste project involves reducing emissions by separating organic waste at the site where it is generated and diverting it from landfill to alternative treatments such as composting and biodigestion. Projects can also divert surplus food from being sent to landfill and donate it to registered charities.

You earn carbon credits for the reduction in methane emitted compared to if the waste had been sent to landfill (measured in carbon dioxide equivalent). The amount of methane that would have been captured and combusted if the waste had been sent to landfill is accounted for based on the average percentage captured in each state or territory.

Companies or organisations most suited to running a project are those that sell or process food or garden waste such as food retailers, hospitality businesses or local councils.

Project activities

You can manage organic waste and reduce emissions through the following activities:

  • Treat organic waste — separate and divert organic waste from landfill to be treated using eligible low-emissions processes — for example, by composting, using an anaerobic digester to capture and combust methane or producing a fuel substitute.
  • Donate to registered charities — separate and divert surplus commercial or industrial-sourced food from landfill to registered charities for charitable use and distribution.

Eligibility requirements

To be eligible you must:

  • Ensure your project includes eligible organic material – including but is not limited to, green and household waste, textiles, rubber and leather.
  • Ensure the eligible organic material is separated at the place where it is generated e.g. a household produces organic waste that separated can be separated into different bins contained food waste and garden waste.
  • Hold at least two years of records showing that the organic material was previously disposed of in landfill.
  • Establish legal right (the right to run your project and claim carbon credits) — for example, by having permission from the waste-generating organisation to undertake the project activities.
  • Obtain regulatory approvals required to run your project and ensure project activities are not required to be carried out under a Commonwealth, state or territory law.
  • Make sure your project is new — you need to either start a new waste separation activity or expand on an existing one.

Running and reporting on your project

As part of registering a project, you will need to describe your proposed activities and calculate your expected carbon credits.

There are operating, monitoring, reporting and audit obligations in running a source separated organic waste project. You are eligible to receive carbon credits each time you report calculated project emissions reductions during the first seven years of the project. Note that these carbon credits will be issued to you over a 13-year period. You will need to continue to report on your project at least every two years over the 13 years.

Relevant legislation and resources



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