The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is reshaping how Australia tackles landfill emissions, with a renewed carbon crediting method aimed at strengthening the waste and recycling sector’s role in cutting methane.
Under the Federal Government’s overhaul of the Alternative Waste Treatment framework, the focus is on building a more robust carbon market that properly values emissions reductions.
Assistant Minister Josh Wilson said “Australia has a great opportunity to reduce methane emissions from waste”, adding the updated method would “strengthen integrity and confidence in waste sector ACCUs over the long term”.
At the centre of the reform is a new method being developed by the Australian Resources Recovery Council, designed to unlock more projects and drive investment across the sector. By rewarding facilities that divert mixed solid waste away from landfill, the approach aims to accelerate emissions reductions while encouraging the uptake of new processing technologies.
Wilson said the shift recognises the scale of the opportunity, noting that “diverting waste from landfill offers one of the largest single opportunities to cut emissions in the waste sector”, because properly treated waste produces significantly less methane.
The method could also spur the production of lower-emissions fuels such as biomethane, created from mixed waste streams and positioned as a substitute for natural gas. This reflects a broader push to extract more value from waste while reducing its environmental impact.
The original AWT method, which ran for a decade before expiring on 31 March 2025, laid the groundwork for emissions reduction projects but left limited scope for newer technologies. Its expiry has opened the door to a redesigned model intended to support more innovative approaches and expand participation in the Australian Carbon Credit Unit scheme.
Importantly, the updated process marks a first for the sector. The council is the first entity to initiate a method remake under the government’s proponent-led development framework, signalling a more collaborative approach between industry and regulators.
Once finalised, the new method will be assessed by the Emissions Reduction Assurance Committee to ensure it meets the required integrity standards before being considered for approval.
Wilson said the overhaul is about more than policy settings, framing it as a long-term shift in how the sector contributes to national climate goals. “We’re modernising the Alternative Waste Treatment method to foster innovation, drive investment in resource recovery infrastructure, and support waste sector decarbonisation,” he said.
He added that the changes would ensure facilities can continue delivering emissions reductions over time, “positioning the waste sector as a key contributor to Australia’s transition to a net zero and circular economy”.