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Waste projects set to benefit from change in Methane Greenhouse Warming Potential

LandfillGreenhouse Warming Potential (GWP) review will unlock up to 20% additional abatement potential for the waste sector – but only if accounted for accurately in project proponents’ ERF bid.

Forecasting carbon abatement from waste activities can be very complex. Abatement is always defined against a hypothetical landfill emissions baseline that can be affected by a range of parameters (42 on last count!).

From 1 July 2015, one of these parameters, the GWP for methane will increase from 21 to 25 (and the GWP for nitrous oxide decreases from 310 to 298).

Every year, the rules of Australia’s greenhouse gas accounting systems the National Greenhouse and Energy Reporting (NGER) scheme are reviewed and amended to reflect changes in science and international reporting frameworks.

This year’s NGER (Measurement) Amendment exposure draft Determination 2015 provides amendments to update the Global Warming Potentials (GWPs) from the IPCC Fourth Assessment Report, adopted by the Parties to the UN Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol.

In the meantime, the Department of Environment is calling on Emissions Reduction Fund participants to get ready for the first tranche of Direct Action funding. Existing CFI projects and new projects should – by March:

  1. Get familiar with the ERF process, the contract terms and auction guidelines
  2. Forecast the quantity of ACCUs that will be generated over the next 7 years
  3. Estimate the cost of your abatement and determine your bid price accordingly
  4. Decide whether to appoint an agent to bid on your behalf.

Most CFI projects proponents have started to look at the ERF and auction requirements, but very few have picked up on the 20% increase in landfill gas emissions baseline in their initial forecast.

With relatively little competition in the first auction now is the time for early CFI movers to capitalise on their projects and make the most of their first bid to the ERF.

For more contact Julien Gastaldi on 0479 043 903 or email

in Carbon


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