The Albanese Government is remaking the Alternative Waste Treatment carbon crediting method to support Australia's waste and recycling sector to continue reducing methane emissions from landfills through a robust carbon market approach that attributes value to the necessary reduction in greenhouse gases.
The new Australian Carbon Credit Unit (ACCU) method being developed by the Australian Resources Recovery Council is expected to incentivise both the diversion of mixed solid waste from landfill and the adoption of technological advances in the sector.
The method may also encourage production of biofuels, including biomethane - a lower-emissions substitute for natural gas - from mixed solid waste.
Waste diversion and innovative new treatments provide significant opportunities to reduce methane from decomposing waste in landfills.
The original AWT method expired on 31 March 2025 after 10 years of operation, opening the door to a remade method that provides a pathway for new and innovative projects to receive ACCUs.
The updated method makes the Australian Resources Recovery Council the first entity to commence a method remake process under the proponent-led method development process.
Once developed, the Emissions Reduction Assurance Committee (ERAC) will assess the new AWT method against the Offsets Integrity Standards and provide a report for consideration.
Quotes attributable to Assistant Minister for Climate Change and Energy Josh Wilson
"Australia has a great opportunity to reduce methane emissions from waste, as we work to deliver a new method that will strengthen integrity and confidence in waste sector ACCUs over the long term, while making a critical contribution to tackling dangerous climate change.
"Diverting waste from landfill offers one of the largest single opportunities to cut emissions in the waste sector, because we know that when waste is treated properly, it produces far less methane than landfill.
"We're modernising the Alternative Waste Treatment method to foster innovation, drive investment in resource recovery infrastructure, and support waste sector decarbonisation.
"This will allow waste facilities to keep delivering emissions reductions year after year, positioning the waste sector as a key contributor to Australia's transition to a net zero and circular economy."
