A new Australian Carbon Credit Unit (ACCU) method takes effect today, delivering on the government's commitments to strengthen the integrity of the ACCU Scheme and incentivise more abatement to help meet our emissions reduction targets.
The Reducing Methane Emissions from Landfill Gas method will strengthen the integrity of ACCUs derived from capturing and destroying methane emissions from landfills.
The method will incentivise abatement from new projects to encourage new infrastructure investment in abatement activities by existing projects.
The new method implements a recommendation from the Independent Review of the ACCU Scheme led by Professor Ian Chubb AC, which found that landfill gas methods and crediting period extensions should incorporate upward sloping baselines to reflect the expectation that abatement improves overt time and to therefore ensure the continued integrity of ACCUs generated from landfill gas projects.
Developed in consultation with independent experts, the landfill gas industry, and State and Territory regulators, the new method replaces the previous landfill gas methods.
Existing projects that demonstrate ongoing investment to meet the rising baselines will be allowed longer crediting periods under the new method. They will be required to increase methane capture to keep earning the same number of ACCUs over time.
The independent Emissions Reduction Assurance Committee assessed the method against the legislated Offsets Integrity Standards and provided its advice to the government that the method meets these important standards.
Applications for projects under the new method can be made to the Clean Energy Regulator.
Quotes attributable to Assistant Minister Wilson:
"The new landfill gas method is another important milestone in delivering on the recommendations of the independent Chubb review.
"The new method ensures the continued integrity of ACCUs from landfill gas projects and maintains Australia's world-leading work in capturing and reducing waste sector emissions.
"Our government is committed to strengthening a robust and transparent carbon market that will support a cleaner, more competitive economy."
Key Facts:
• Baselines represent what would happen without ACCU Scheme incentives - with projects only entitled to ACCUs for the methane they capture, above and beyond those methane gas capture baselines.
• Rising by 0.5% each year, the new baselines in the method are:
o 30% for flaring-only projects
o 37% for new projects that generate electricity, and
o 40% for existing projects that generate electricity
• Flaring-only projects at small and regional landfills that face additional barriers will have a 0% baseline.
• Some projects may have higher baselines if state and territory licences require methane capture, or if they have had higher baselines under old methods.
• Public consultation on the method reforms included an options paper in 2024 and an exposure draft method in May 2025, released on behalf of the independent Emissions Reduction Assurance Committee.
