26/02/17
Australia to develop new alternative waste ACCU method
Sydney, 17 February (Argus) — The Australian government has prioritised the
development of a new Alternative Waste Treatment (AWT) carbon-crediting method
that could boost emissions abatement by offering a potentially longer crediting
period and by adding biomethane generation as an eligible activity. The new
methodology will be the first method remake to progress under the proponent-led
development process launched in 2024 , which opened the development of new
Australian Carbon Credit Unit (ACCU) methods to proponents outside government.
The Australian Resources Recovery Council (ARRC) will lead the process, the
Department of Climate Change, Energy, the Environment and Water (DCCEEW) said
today. A total of 5.57mn ACCUs have been issued to projects registered under the
AWT method, representing just 3pc of the 180.78mn ACCUs issued since the scheme
started in 2012. But AWT units were the fifth-largest source of ACCU surrendered
under the safeguard mechanism for the July 2023-June 2024 compliance year ,
behind avoided deforestation, landfill gas, human-induced regeneration and
savanna fire management methods. ACCUs from AWT projects are typically sold
under the generic no-avoided deforestation (No AD) label — the most liquid ACCU
product in the secondary market. Developers earn ACCUs from projects that avoid
methane emissions from decomposing organic waste in landfill, typically through
anaerobic digestion or process-engineered fuel technologies. New project
registrations under the method ceased on 31 March 2025 when it expired, although
existing projects can continue generating ACCUs until the end of their seven
year crediting period. Significant uptake potential Only 11 projects have ever
earned AWT ACCUs, with the biggest operators including waste management firms
Veolia and Cleanaway — which are also among Australia's largest landfill gas
ACCU project operators — as well as carbon developer Corporate Carbon Group ,
according to the latest project register data from the Clean Energy Regulator
(CER) ( see table ). But a "significant increase in uptake" could occur if a new
AWT method is developed with key proposed changes, several submissions to a 2024
consultation by the Emissions Reduction Assurance Committee (Erac) said. Erac is
the statutory body overseeing integrity in Australia's carbon crediting
framework. Erac concluded that the AWT method continues to meet Australia's
offset integrity standards. It recommended that assistant minister for climate
change and energy Josh Wilson consider several changes if the method is remade
to encourage greater uptake and abatement, including extending the crediting
period beyond seven years and allowing the biomethane generation as an eligible
activity. Longer crediting period favoured Most submissions supported extending
the crediting period if the method is remade, to at least 20-25 years, Erac
noted. This is mostly because of increasing capital and operating costs of AWT
facilities, which typically run for more than 20 years, companies have argued.
Some firms also noted that landfill gas projects enjoy a 12-year crediting
period , despite lower capital and operating costs than AWT projects involving
process-engineered fuel production or anaerobic digestion. "Several submissions
argued that resource recovery should be prioritised over landfill gas capture as
it aligns with the Australian government's targets for emission reductions,
waste diversion, and recycling," Erac said in its review. The crediting period
under a remade AWT method should at least match the landfill gas method's
crediting period, companies asked. A new method could also include activities
covered by the Source Separated Organic Waste (SSOW) method, which will expire
on 31 March 2026. Erac reviewed that method last year, alongside beef cattle
herd management, reforestation and afforestation 2.0, and land and sea transport
, but recommended against creating a new SSOW method, according to an update
published today. Biomethane inclusion Most submissions also called for the
inclusion of biomethane generation under the new method. ACCUs would be issued
for the abatement generated when biomethane is burned and when it displaces
fossil-fuel natural gas consumption in domestic applications. A biomethane
variation to the AWT method was previously considered in 2022 and underwent
public consultation, but was not advanced for Erac's consideration at the time.
High costs, regulatory barriers and a limited ACCU pathway have prevented a
higher uptake of carbon crediting projects for biomethane facilities in
Australia. But new certification options — including renewable gas guarantees of
origin (RGGOs) under GreenPower's Renewable Gas Certification and new product
guarantee of origin (PGO) certificates under the CER managed guarantee of origin
GO scheme — are expected to encourage investment. RGGOs and PGOs can now be used
by companies to reduce their scope 1 emissions under the National Greenhouse and
Energy Reporting (NGER) scheme following long-awaited rule changes in 2025. More
anaerobic digestion projects could be registered under the new ACCU method,
driven by demand from gas users for renewable biomethane to meet their corporate
decarbonisation targets, one submission said, according to Erac. "Several
submissions stated that with proper support, the AWT industry could abate an
additional 13-14mn t of carbon dioxide equivalent (CO2e) per year," Erac added.
By Juan Weik Australia's largest alternative waste treatment ACCU project
operators Operator ACCUs issued Veolia 2,833,937 Global Renewables Eastern Creek
(Cleanaway) 1,762,305 Corporate Carbon Group 709,024 Port Macquarie Hastings
Council 202,605 Benedict Recycling 52,587 Northmore Gordon 8,055 IWS Group Asset
2,503 Source: CER Send comments and request more information at
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