The Australian government is remaking the Alternative Waste Treatment (AWT) carbon crediting method to support the nation’s waste and recycling sector in continuing to reduce 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 the production of biofuels, including biomethane – a lower-emissions substitute for natural gas – from mixed solid waste.
According to the government, waste diversion and innovative new treatments provide significant opportunities to reduce methane emissions from decomposing waste in landfills, one of the most potent sources of greenhouse gases.
The original AWT method expired on 31 March 2025 after 10 years of operation, paving the way for a renewed method that offers a pathway for new and innovative projects to receive ACCUs.
The updated version marks a milestone, as the Australian Resources Recovery Council becomes the first entity to commence a method remake process under the proponent-led method development process.
Once the new method is developed, the Emissions Reduction Assurance Committee (ERAC) will assess it against the Offsets Integrity Standards and provide a report for government consideration.
This step ensures the proposed method maintains environmental integrity and delivers real, measurable emissions reductions.
Assistant Minister for Climate Change and Energy Josh Wilson said the new approach underlines the government’s commitment to tackling methane emissions and strengthening confidence in the carbon credit market.
“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,” Mr Wilson said.
He noted that diverting waste from landfill remains one of the most effective ways to curb emissions in the sector.
“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,” Wilson said.
The Assistant Minister also highlighted that the reform will help modernise Australia’s waste management landscape and drive long-term investment.
“We’re modernising the Alternative Waste Treatment method to foster innovation, drive investment in resource recovery infrastructure, and support waste sector decarbonisation,” he said.
“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.”
