The recommendation of the Chubb Review to maintain baselines on landfill gas electricity (LFGE) projects reaffirms the integrity of carbon credits and will encourage new investments, according to leading carbon abatement company LGI.
LGI also welcomed the review’s recommendations for increased transparency and upward sloping baselines over the life of a project, which it says will boost confidence in landfill gas as an abatement strategy.
LGI estimates about 200 large landfill sites around Australia could install commercial biogas recovery systems and claim credits for carbon abatement, creating significant opportunities for new investment.
More than 100 projects currently claim credits for landfill gas abatement, accounting for almost 30 per cent of carbon credits under the Federal Government’s Emissions Reduction Fund.
Adam Bloomer, LGI Managing Director, said carbon credits from landfill gas electricity projects are some of the most transparent and easily verifiable because gas flows are measured by a calibrated flow meter and at the point of combustion, giving reliable data on how much gas is captured and destroyed.
“Carbon credits encourage, and in many cases underpin, the development of more renewable energy projects at landfills, especially in regional areas,” Bloomer said.
“Professor Chubb’s review will provide certainty for ongoing investment in renewable energy projects on landfills, and appropriately incentivise efficient management of gas recovery systems to benefit landfill operators, their communities and the environment.”
The Federal Government commissioned the Review, led by former Chief Scientist Professor Ian Chubb AC, in July 2022 to explore how the Australian Carbon Credit Unit (ACCUs) scheme can best support Australia’s emission reduction targets, support cultural, social, economic and environmental outcomes and address concerns raised about the scheme’s integrity.
The independent panel reviewed the scheme’s architecture and governance, and the broader impacts of carbon projects including for agriculture, biodiversity, participation of First Nations peoples and regional communities.
The final report, released on 9 January, concludes the ACCU scheme arrangements are sound but recommends that after 11 years of operation, some sensible changes will strengthen it.
Recommended updates include clarifying governance, improving transparency, and facilitating positive project outcomes and co-benefits.
Chris Bowen, Minister for Climate Change and Energy, said that given the importance of the scheme to Australia’s sustained emissions reduction, the review was timely to ensure it is operating at the highest level and that all members of the public have confidence in its work.
“The panel’s recommendations will help ensure Australia’s carbon crediting scheme has the highest integrity, and contributes to achieving Australia’s emission targets,” Bowen said
“I am pleased to agree in principle to all the recommendations.”
For more information, visit: www.dcceew.gov.au