14 August 2025

The Rising Challenge of Methane Emissions from Waste in EU and Australia

As countries work toward their climate commitments under the Paris Agreement, the European Union (EU) and Australia have taken different approaches to tackling methane emissions in the waste sector. Mike and Ilan explain.

By: Mike Ritchie and Ilan Levy Nadelsticher, MRA Consulting Group

Methane is one of the most powerful greenhouse gases driving climate change, responsible for nearly 30% of global warming. Over a 20-year period, it is far worse than carbon dioxide, warming the planet 84 times more. A major source of methane comes from waste—especially decomposing organic matter in landfills—which accounts for 18% of human-caused methane emissions.

As countries work toward their climate commitments under the Paris Agreement, the European Union (EU) and Australia have taken different approaches to tackling methane emissions in the waste sector.

The EU Approach

The European Union has put in place a strong set of regulations to tackle methane emissions from waste. Policies like the Waste Framework Directive, the Landfill Directive, and the EU Circular Economy initiatives have helped cut emissions significantly.

In 2022, the EU’s waste sector emitted around 97 million metric tons of CO₂ equivalent (Mt CO₂-e) in methane, with landfills responsible for 80% of those emissions.

To address this, the EU has focused on three key strategies:

Waste Diversion and Recycling: By promoting separate collection and recycling (e.g. composting and anaerobic digestion) of organic waste, the EU has significantly reduced the amount of methane released from landfills.
Anaerobic Digestion of Clean Food Waste: Rather than allowing clean food waste to end up in landfills, the EU is encouraging its diversion directly into anaerobic digestion (AD) facilities. AD processes food waste in oxygen-free environments, producing biogas that can be used as renewable energy.
Landfill Gas Capture: Many landfills now have gas management systems in place to capture methane before it escapes into the atmosphere, although effectiveness varies between landfills and member states.

These measures have helped lower methane emissions, but continued improvements are needed to close the gaps in efficiency across the EU.

Australia’s Emerging Policies

Unlike the European Union, Australia has only one federal legislative mechanism specifically targeting methane emissions from waste, the Safeguard Mechanism:

Which requires a 4.9% reduction in annual emissions by covered companies.
However, it only covers the very big landfills emitting more than 100kt CO₂-e. Most of these already have methane capture systems in place and have a limited capacity to do more.
Therefore, 90% plus of Australia’s landfills are not covered and there is no federal legislation forcing them to install gas capture.

The National Waste Policy Action Plan aims for a 50% reduction in organics to landfill, but there are no mandates or regulatory requirements to achieve this target.

In 2021/22, the Australian solid waste management sector generated 10.5 Mt CO₂-e, with landfills responsible for 97% of those emissions. Methane capture rates have stalled at around 45%, falling behind countries like the UK and the US, which achieve over 60%.

Australia currently sends about 7.6 million tonnes of food waste to landfill annually. Diverting this waste from landfill, presents an incredible opportunity to generate high quality compost and renewable green energy via AD while reducing GHG emissions and preserving landfill space.

It should be noted that most diverted organics in Australia are composted as there are only two AD plants currently processing food waste, and only about 100,000t/yr combined:

Veolia’s EarthPower plant in Sydney, (which is reopening after an 18-month refurbishment).
Richgro’s AD plant in Perth.

These companies are to be congratulated for their initiative and risk taking. But it is not enough.

There is some positive movement at the State Government level:

Food Organics (FO) and Food Organics & Garden Organics (FOGO) Mandates: NSW has set clear targets, with FO collection becoming mandatory for most commercial generators in July 2026 and council FOGO collection becoming mandatory by 2030.
- Other states should adopt similar policies.

Landfill Gas capture
- Some states (e.g. Victoria) have established minimum gas capture regulatory requirements. Again all States should take this up.
- Individual landfills, depending on size and location, are required via their operating license to implement gas capture systems.
- The Federal Government should extend the Safeguard Mechanism to all medium and large landfills.
States have provided grants for new composting and AD developments.
- This should be expanded to divert organics from landfill.
The Federal Government via the Australian Carbon Credit Unit (ACCU) Scheme, has provided incentives both for diverting organics from landfill and for capturing methane gas at smaller landfills.

These efforts mark progress, but without stronger national policies, Australia will continue to stagger along and not substantially reduce methane emissions.

Strengthening methane reduction efforts isn’t just a necessity—it’s an opportunity. Businesses, governments, and communities can work together to drive meaningful climate action while advancing the circular economy and creating a more sustainable future for all.

Mike is the Managing Director at MRA Consulting Group. Ilan is an intern at MRA Consulting Group.

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