Fact sheet released on carbon pricing at landfills

MWMG has received several enquiries from metropolitan councils following the publication of a media release by Mark Dreyfus, Parliamentary Secretary for Climate Change and Energy Efficiency on 22 May and a subsequent Sustainability and Climate Change e-Alert by Maddocks on 25 May.

The e-Alert, citing Minister Dreyfus' media release, notes that: "Government has made rules deeming landfill emissions in 2012/13 to be zero, so councils with large landfills will have no carbon price obligation in 2012/13". The obligation being referred to involves the obligation on liable entities - that is a council owned and operated landfill with annual emissions greater than 25,000 tonnes of carbon dioxide equivalent (T/CO2e) - to report their emissions and submit sufficient carbon permits to cover their emissions liability to the Federal Government.

The National Greenhouse and Energy Reporting Scheme (NGERS) sets out the rules, known as a Measurement Determination, for calculating emissions from waste, as well as other industries. Under these rules, there are no reportable emissions in the year waste is deposited at a landfill. This delay in emissions takes into account an assumed delay in the production of methane associated with waste decomposing over time. While the Determination is currently being updated by the Federal Government, there has been no change recommended to the delay in emissions arising.

The Federal Government recently released a second fact sheet relating to landfills and carbon pricing. Read it here. This indicates one option for landfill operators is to charge up front for the future emissions liability associated with waste deposited.

MWMG advises councils to prepare 2012/13 budgets assuming a charge for waste deposited from 1 July 2012 will include the cost of emissions. The five major landfill operators servicing metropolitan Melbourne councils have all indicated a carbon price will be applied for waste deposited from 1 July 2012.

MWMG will shortly be arranging its third round of council landfill user group meetings, for both contracted and non-contracted councils, to discuss and prepare for the introduction of the carbon tax from 1 July 2012. Further information about the impact of carbon pricing is available from the MWMG website http://www.mwmg.vic.gov.au or by contacting Mr Maurie Schultz on 03 8698 9820 or Mr Hamish Walker on 03 8698 9818.