Crediting period

The crediting period is the period of time a project can apply to claim ACCUs.

Under the Method, all new projects that seek to capture and combust waste methane from landfills with the intention to generate electricity will have a 12 year crediting period.

Projects that produce biomethane have a crediting period of 12 years, less any time the project has previously earned ACCUs for methane destruction. Further details on how crediting periods for biomethane projects operate is in the documentasset:Biomethane method package - simple method guide.

Existing landfill gas projects declared as eligible offsets projects under the 2015 Method or that apply the 2015 Method but choose to transfer onto the landfill gas (generation) method because they intend to generate electricity would have a crediting period of 12 years from the start date of their crediting period under the 2015 Method or a legacy CFI determination, giving them an effective extension of 5 years to their crediting period.

Relevant section of the Act:

• Part 5

Relevant section of the Method:

• Sections 16-16C

Eligibility requirements

There are general eligibility requirements in the Act, which include:

• newness
• additionality and funding from other government programs, and
• legal right.

The sub-types of projects are eligible under this Method include:

• New projects collect and combust landfill gas by installing a gas collection system capable of generating electricity at a landfill site where there has not previously been a gas collection system.
  
• Recommencing projects involve recommencement of gas collection using either a new or existing gas collection system. For this type of project, a landfill gas collection system must not have operated at the site after 24 April 2014 and for the 3 years before an application to register the project is submitted to the Regulator.
  
• Upgrade projects involve upgrading an existing landfill gas collection and combustion system to improve gas collection efficiency.
  
• There are 5 kinds of transitioning projects:
  
• projects transitioning from the legacy landfill gas methodology determinations made under the Carbon Farming Initiative (CFI) scheme.
• projects previously declared under the 2015 Method would be able to move to the landfill gas (generation) method provided they meet the eligibility requirements. Such projects are identified as a transitioning (continued) project, transitioning (new) project, transitioning (recommencing) project, or a transitioning (upgrade) project, based on the kind of project that it was under the 2015 Method.

More information on project types and sub-types is provided in the explanatory statement to the 2022 landfill gas (generation) variation.

Relevant section of the Act:

• Part 3

Relevant section of the Method:

• Part 2, Part 3

Project activities

A project under the Method must intend to generate electricity, produce biomethane from landfill gas, or both. These activities may occur exclusively or in conjunction with flaring, and result in abatement by collecting methane generated by decomposing biodegradable organic matter in the landfill, and converting it to carbon dioxide – this abatement is known as conversion abatement.

The methane must be converted to carbon dioxide by combustion using a combustion device, or by being sent to a biogas upgrading system to be converted to biomethane. Biomethane produced by the project must reasonably be expected to be combusted as a natural gas substitute within Australia. This may occur on-site, or off-site at a separate facility or when biomethane is injected into the gas grid.

A combustion device may be:

• a flare, boiler or internal combustion engine operated in accordance with the manufacturer’s instructions
  
• a device that combusts landfill gas with a destruction efficiency of at least 98 per cent, is operated in accordance with the manufacturer’s instructions and for which the combustion process can be monitored minute-by-minute.

Relevant sections of the Method:

• Section 5, Part 2 and Part 3

Exclusions

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:

• Legacy waste is waste deposited before 1 July 2012, when the carbon pricing mechanism commenced.
• Non-legacy waste is waste deposited after 30 June 2014, when the carbon pricing mechanism ended.

Relevant section of the Method:

• Section 5

Abatement calculations

Conversion abatement is calculated by working out the net abatement amount which is project conversion abatement minus baseline conversion abatement.

Project conversion 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 2, Subdivision 3 of the Method deals with the calculations involved in determining project conversion abatement.

Baseline conversion 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 2, Subdivision 4 of the method deals with calculating baseline conversion abatement. Some of the major steps involved in calculating baseline conversion abatement include determining:

• regulatory proportion
  
• default baseline proportion
  
• baseline proportion.
  

The 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:

• using regulatory guidelines for landfill in your state or territory
• for new projects – asking your state or territory environmental regulator
• for upgrade projects – asking your state or territory environmental regulator and calculating the collection efficiency of the existing landfill gas system
• engaging an independent expert.

The 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:

• install or develop a plan to install a landfill gas collection system
• control or reduce methane concentrations
• control, manage or limit odour
  
• capture landfill gas where practicable.

The baseline proportion depends on the type of project.

• For new and recommencing projects, it is the higher of the regulatory proportion or the default proportion.
• For upgrade projects, it is the higher of the regulatory proportion, the default proportion or the proportion of methane combusted during the reporting period that would have been combusted without the 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.

Displacement abatement is calculated by working out the volume of biomethane produced. Part 4, Division 3 of the method deals with calculations involved in determining displacement abatement.

For further information about calculating net abatement for biomethane project activities, read the biomethane method package simple method guide.

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:

• documentasset:Landfill gas calculator – Pre 1 July 2020 For use when the reporting period ends prior to 1 July 2020.
• documentasset:Landfill gas calculator – Post 1 July 2020 For use when the reporting period ends on or after 1 July 2020.
• documentasset:Landfill gas calculator instructions
  

Please note these calculators contain macros and do not cover calculations for biomethane project activities.

Relevant sections of the Method:

• Section 6, Part 4 and Schedule 1

Reporting requirements

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:

• Upgrade projects are only able to submit their first report for a reporting period that ends 12 months after the upgrade has taken place. This provides enough data to be able to compare the improvement in collection efficiency from the period prior to the upgrade.
• Other types of projects can submit their first and subsequent reports for a reporting period between one month to two years.

Relevant section of the Act:

• Part 6

Relevant section of the Rule:

• Part 6

Relevant sections of the Method:

• Section 11 and Part 5

Monitoring requirements

In addition to the general monitoring requirements of the Act, projects must meet specific monitoring requirements in the Method. Section 36 lists these requirements along with the process for monitoring and the standard to which it must adhere.

Relevant section of the Act:

• Part 17

Relevant section of the Method:

• Part 5

Record-keeping requirements

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 Act:

• Part 17

Relevant section of the Rule

• Part 17

Audits

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.

Relevant section of the Act:

• Part 19

Relevant section of the Rule:

• Part 19

Specialist skills

Specialist skills may be required to carry out the project with the method. Examples of specialist skills include:

• registered professional engineer
• certified energy manager
  
• certified measurement and verification professional.

Relevant section of the Rule:

• Section 13(f)