NSW Environmental Protection Agency NSW Government
 

Climate change requirements for landfill licensees

Information on how the EPA’s climate change requirements apply to landfill licence holders. 

The NSW EPA’s climate change requirements apply to businesses that hold environment protection licences under the NSW Protection of the Environment Operations Act 1997 (POEO Act). These requirements are designed to improve transparency, support better management of greenhouse-gas emissions and provide the EPA with information to develop targeted sector guidance and support.

There are about 130 licensed landfill operations in NSW. Landfills are a large source of greenhouse-gas emissions due to the generation of methane as organic waste decomposes over time. Many landfill operators already measure landfill gas and manage it through collection systems, flaring or energy recovery.

Requirements apply to some landfill operations

A premises is the location to which the environment protection licence applies. (It is usually defined in section A2 of the licence.) The EPA’s climate change requirements apply only to premises that already have an environment protection licence and have emitted over 25,000 tonnes per year of CO2-e of scope 1 and scope 2 emissions in any of the previous three financial years.

The 25,000 t CO2-e threshold is calculated based the premises’ emissions, and includes any on premises abatement, such as landfill gas flaring or energy recovery.

All scope 1 and scope 2 emissions occurring within the boundary of the licensed premises must be included in this calculation, regardless of whether they relate to the premises’ ‘primary fee-based activity’ as per their licence. On-site abatement activities, such as landfill gas capture, are reflected within scope 1 emissions accounting. Offsets generated off-site cannot be included when determining whether the threshold is met.

Some landfill operators already report under National Greenhouse and Energy Reporting Scheme (NGERS). The EPA is collaborating with the Clean Energy Regulator to provide the EPA with direct access to this data. 

Landfill licensee responsibilities

Landfill licensees that meet the threshold must:

  • Submit an annual climate change report on their emissions to the EPA by 31 March each year, with the first submission due to the EPA by 31 March 2027.
  • Submit a report to the EPA estimating their scope 1 and scope 2 emissions for each of the next five financial years (a five-year rolling forecast). The first submission is due to the EPA by 31 March 2027, and future reports must be submitted  every three years.
  • Publish a Climate Change Mitigation and Adaptation Plan (CCMAP) by 31 August 2027. It should be updated by 31 March 2030, then updated again at least every three years.

Further details on each requirement can be found in the Emissions Reporting and Climate Change Mitigation and Adaptation Plans guidance document.

Emissions to include in estimates

Licensees must estimate their scope 1 and 2 emissions to determine whether they meet the requirements threshold; this is to be noted in both their annual emissions report and their CCMAP. Scope 3 emissions can be included in a CCMAP, but this is optional. The NSW EPA’s climate change requirements refer to scope 1, scope 2 and scope 3 greenhouse-gas emissions, as defined under the National Greenhouse Accounts Factors.

Scope 1: Direct emissions

Scope 1 emissions are generated within the licensed premises’ boundary as per their environment protection licence, and may include:

  • fugitive methane emissions from landfill waste deposits
  • residual emissions from landfill gas capture systems and flaring systems, including any methane that is not successfully captured or destroyed
  • biogas combustion
  • fuel used in on-site equipment and vehicles
  • emissions generated by other on-site infrastructure.

Scope 2: Indirect energy emissions 

Scope 2 emissions arise from purchased electricity generated outside the premises’ boundary and consumed at the landfill premises.

Scope 3: Other indirect emissions

Scope 3 emissions are not required but may be included in CCMAPs if the licensee wishes. The emissions from processes under the operational control of third parties are considered scope 3.

How to estimate emissions

Licensees are responsible for determining whether their emissions meet the 25,000 t CO2-e threshold.

Landfills are unique because they continue to emit methane from waste deposited in previous years.

To align with the Australian Government’s NGERS reporting approaches, the EPA requires emissions reporting only for waste deposited from July 2008 onwards.

Emissions must be estimated in accordance with NGERS legislation, where a suitable method for the activity is available.

NGERS legislation means:

  • the National Greenhouse and Energy Reporting Act 2007
  • the National Greenhouse and Energy Reporting Regulations 2008
  • the National Greenhouse and Energy Reporting (Measurement) Determination 2008.

If a licensee considers that alternative site-specific methods or data provide a more accurate estimate of emissions (for example, where landfill gas capture performance differs from NGERS default assumptions), these may be described as additional information in the licensee’s CCMAP.

Where no suitable method is available under the under NGERS legislation for the activity, licensees must use:

  • emissions factors contained in the latest National Greenhouse Accounts Factors, or
  • a publicly available methodology (for example, the Greenhouse Gas Protocol or Full Carbon Accounting Model) using 100-year global warming potentials for each greenhouse gas when calculating CO2-e.

Tools available include:

As a simple preliminary estimate, a conversion factor of 1.2 t CO2-e per tonne of food waste may be used. Premises with estimated emissions approaching 20,000 t CO2-e using this simplified method are encouraged to undertake a more detailed assessment.

More robust estimates should consider factors including:

  • climate conditions
  • volume and composition of waste
  • historical waste received
  • landfill gas capture and methane management systems
  • equipment and operational practices.

How to set emissions goals

Licensees must include absolute emissions goals for 2030, 2035 and 2050 in their CCMAP.

An emission goal:

  • must be expressed in absolute terms rather than intensity
  • does not have to be an emissions reduction goal
  • may reflect stable or increasing emissions where reductions are not currently feasible due to technical or operational constraints
  • may include offsets
  • does not need to be expressed at the individual premises level if a single CCMAP covers multiple NSW licensed premises.

Emission goals should reflect the expected future emissions of the licensed premises, taking into account intake volumes, available technologies and sector constraints. The EPA expects emissions goals to be broadly consistent with the NSW emissions reduction targets under the Climate Change (Net Zero Future) Act 2023 or NSW Government–developed industry-specific emissions reduction trajectories.

However, we recognise that different sectors will have varying levels of technology available to decarbonise in the short, medium and long term. If the goals do not align with the overall NSW targets, or a NSW Government–developed industry-specific trajectory, the licensee must explain why.

We recognise that emissions trajectories may be ‘lumpy’ and may depend on the implementation or availability of cost-effective technologies across different time horizons.

How to choose mitigation measures

As part of developing their CCMAP, licensees must explain how they are managing their greenhouse-gas emissions. For landfill operations this may include:

  • improving landfill gas capture systems
  • installing or upgrading methane flaring infrastructure
  • generating electricity from landfill gas
  • improving waste management practices that reduce methane generation.

We recognise that mitigation options for landfill emissions may be limited and site-specific.

The CCMAP is a planning and transparency requirement. Licensees are required to describe the mitigation measures they are implementing or considering. They are not required to commit to measures that are not technically or commercially feasible, nor are they required to achieve emissions reductions where reductions are not currently achievable.

Guidance and support

Guidance on estimating your premises’ emissions is available from the following.

Clean Energy Regulator

The NGER solid waste calculator helps operators estimate and report the greenhouse-gas emissions from landfill operations.

The CER has also published the Estimating emissions and energy from solid waste and landfill biogas management guideline 2023–24.

National Greenhouse Accounts

The National Greenhouse Accounts (NGA) Factors provide emissions factors and methods to estimate greenhouse-gas emissions. Landfill scope 1 and 2 emissions are typically calculated using the NGER Measurement Determination methods.

CCMAP template

We are working with the Joint Organisation Net Zero Accelerator, joint organisations and local councils to develop a template for the CCMAP, to help streamline reporting for councils and other licensees.

Hunter Joint Organisation

The Mastering Landfill Emissions with the NGERS calculator program provides capacity-building support for councils measuring landfill emissions.

Financial support

Landfill Emissions Abatement Program (LEAP)

The NSW Government is developing the Landfill Emissions Abatement Program (LEAP) to support methane reduction in the landfill sector.

LEAP aims to:

  • support councils to better manage landfill emissions
  • improve landfill gas management technology and market readiness
  • provide financial and technical support to improve methane abatement.

Industrial Decarbonisation Initiative

Non-Safeguard landfills will be able to apply for a grant for developing their CCMAP. The EPA is working with NSW DCCEEW to deliver a $5M grants program. Details will be available soon.

Resources 

NSW Government

Other