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Climate Solutions Fund > How it works > Explore project types > Animal effluent management projects

Animal effluent management projects

The benefits

An animal effluent management project treats animal waste from piggeries and dairies to reduce the release of methane, a potent greenhouse gas, into the atmosphere. This reduction in emissions earns Australian carbon credit units (carbon credits).

Management of animal effluent has a number of benefits:


Diversify revenue

Carbon credits provide another income stream for your property.


Lower electricity bills

Generate renewable electricity for use on-site or to sell to the grid.


Odour control

Biodigesters reduce odour effects on local residents.


Environmental action

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

Help with these projects

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The basics

Introduction to animal effluent management projects, how they work and their eligibility requirements.

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The details

Further information and resources on animal effluent management projects under the Emissions Reduction Fund.


How these projects work

The decomposing organic matter in animal waste produces methane. This methane is released into the atmosphere when waste material from piggeries and dairies is disposed of in an anaerobic pond. This is because microbes that produce methane are active in waste in the absence of oxygen.

Animal effluent management projects introduce new treatment processes that destroy or avoid methane emissions. A project's emission reductions are determined by measuring the amount of methane destroyed or avoided by the new processes. You earn carbon credits for the reduction in methane emitted (measured in carbon dioxide equivalent).

Project activities

You can treat animal waste and reduce emissions through an emissions destruction or emissions avoidance project:

  • Emissions destruction project - install an anaerobic digester to capture and destroy methane. These projects may also be able to generate electricity and heat for on-site use or to supply to the grid.
  • Emissions avoidance project - separate and aerobically compost waste solids to produce less methane. For example, you can separate solid waste and place it in aerobic compost. Aerobic composting produces significantly less methane because methane-producing microbes are not active in the presence of oxygen.

Eligibility requirements

To be eligible you must:

  • Ensure your project is treating an eligible waste stream (containing animal urine, faeces or incidental waste e.g. spoiled feed) that is sourced from a piggery or dairy and would otherwise have been disposed of in an anaerobic pond.
  • Establish legal right (to run your project and claim carbon credits) - for example, by having operational control of the waste treatment equipment.
  • 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 cannot start treating waste until after we register your project.
  • You cannot have already installed the project's waste treatment equipment. If you have pre-existing equipment, it must have only operated as part of a pilot or trial waste treatment project.

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 an animal effluent management project. You will need to report on your project at least once every two years. You receive carbon credits each time you report over a period of seven to twelve years (duration depends on the project activities chosen).

Relevant legislation and resources

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