Attachment A DOMESTIC OFFSETS INTEGRITY COMMITTEE C/- DOIC Secretariat GPO Box 854 CANBERRA ACT 2601 The Hon Mark Dreyfus QC MP Parliamentary Secretary for Climate Change and Energy Efficiency Parliament House CANBERRA ACT 2600 Dear Mr Dreyfus On behalf of the Domestic Offsets Integrity Committee, I am pleased to advise you that the Committee has considered two proposed changes to the positive list under the Carbon Farming Initiative. Proposal 1: Amendment to an existing activity That the existing positive list activity and associated definitions for the diversion of mixed solid waste be amended to: The diversion, before 1 July 2012, of mixed solid waste, which would otherwise have entered a landfill facility, to an alternative waste treatment facility, where: Mixed solid waste means waste from offices, community organisations, sporting facilities, households, retail and catering businesses and institutions (for example, schools, hospitals and prisons) but does not include: recyclable paper, paperboard, glass, metal or plastic that has been separated at the point of generation; waste known as green waste or wood waste including from gardens or parks; biosolids; manure; any waste from processing, manufacturing, industrial processes or from construction or demolition. Alternative waste treatment facility means an enclosed resource recovery facility that accepts and processes mixed waste using both mechanical processing and biological or thermal processing, and extracts recyclable materials and organic waste. 1 The Committee recommends that the amendment to the activity and definitions is suitable for inclusion on the positive list because the activity is not common practice and meets the requirements of section 41(3) of the Carbon Credits (Carbon Farming Initiative) Act 2011. Proposal 2: Not recommended for inclusion on positive list The Committee does not consider the diversion of any of the following materials to be suitable for inclusion on the positive list, except where these materials are included in mixed solid waste: paper and paperboard, garden and park waste, wood and wood waste, any plant or animal waste from processing, manufacturing or industrial processes, crop residues, ash, textiles, rubber and leather, paper sludge, other sludge, biosolids and manures, construction and demolition waste. The diversion of these kinds of waste from landfill is common practice and does not meet the requirements of section 41(3) of the Carbon Credits (Carbon Farming Initiative) Act 2011. The Committee is pleased to provide this advice and the attached Statement of Reasons to further build the positive list of activities eligible under the Carbon Farming Initiative. Yours sincerely AJ Press A/g Chair Domestic Offsets Integrity Committee November 2012 2 STATEMENT OF REASONS Proposal 1: Amendment to an existing activity In its consideration of the eligibility of the following activities under the Carbon Credits (Carbon Farming Initiative) Act 2011, the Domestic Offset Integrity Committee provides the following advice: That the existing positive list activity and associated definitions: The reduction of methane emissions before 1 July 2012 by diverting mixed solid waste, which would otherwise have entered a landfill facility, to an alternative waste treatment facility, where: Mixed solid waste means solid waste that: a) contains both putrescible and non-putrescible waste; and b) if the waste is separated at the point of generation to form i. waste comprised of recyclable plastic, glass, metal or paper, or ii. waste known as green waste or wood waste, comprised of garden waste, timber or similar materials from the natural environment, or iii. organic waste from the livestock industry, for example, straw bedding and manure mixes, or iv. any other kind of waste that is not intended for a landfill facility, then the mixed solid waste comprises only waste that is residual after non-landfill waste is removed. Alternative waste treatment facility means a facility that converts putrescible waste to energy or any other product. be amended to: The diversion, before 1 July 2012, of mixed solid waste, which would otherwise have entered a landfill facility, to an alternative waste treatment facility, where: Mixed solid waste means waste from offices, community organisations, sporting facilities, households, retail and catering businesses and institutions (for example, schools, hospitals and prisons), but does not include paper and paperboard; garden, park or wood waste; biosolids; manure; or any waste from processing, manufacturing, industrial processes or from construction or demolition. Alternative waste treatment facility means an enclosed resource recovery facility that accepts and processes mixed waste using both mechanical processing and biological or thermal processing, and extracts recyclable materials and organic waste. 3 Background Diversion of putrescible waste was only eligible until 1 July 2012 as emissions from waste entering landfill after this date are covered by the carbon pricing mechanism and no longer eligible to generate offsets. Reasons for advice Households, offices, community organisations, sporting facilities, retail and catering businesses and institutions generate putrescible and non-putrescible waste materials such as food scraps, plastic wrapping, paper towelling, polystyrene, vegetable scraps, disposable containers, coffee grounds, etc. The diversion of these mixed waste materials away from landfill is not common practice because there are health risks and mechanical separation difficulties associated with processing. Alternative waste treatment (AWT) facilities are able to process this waste using advanced technologies that separate the waste and reduce odour, disease and vermin problems. Alternatively, waste stream bins are provided to organisations and the public to enable sorting at source. Some other waste materials also generated by households, offices, community organisations, sporting facilities, retail and catering businesses and institutions are commonly diverted from landfill and are not recommended for inclusion. For example, on average across Australia, 61 per cent of paper and paperboard, 58 per cent of garden and park waste, and 60 per cent of wood and wood waste is diverted from landfill to make compost and other products. More than 50 per cent of glass and approximately 25 per cent of all plastics are also recycled, including 48 per cent of PET plastics. Materials that are commonly diverted from landfill were not eligible under the existing positive list activity and are not proposed to be eligible under the proposed amendment of the activity. This amendment is recommended to provide greater clarity about the eligibility of diversion of particular kinds of waste. The amendment to the definition of an AWT facility will clarify that AWTs are those facilities using advanced technologies to process waste. 4 Proposal 2: Not recommended for inclusion on positive list In its consideration of the eligibility of the following activities under the Carbon Credits (Carbon Farming Initiative) Act 2011, the Domestic Offset Integrity Committee provides the following advice: Many organic waste materials are commonly diverted from landfill including: paper and paperboard, garden and park waste, wood and wood waste, any plant or animal waste from processing, manufacturing or industrial processes, crop residues, ash, textiles, rubber and leather, paper sludge, other sludge, biosolids and manures, construction and demolition waste. The DOIC does not consider the diversion of any of these materials to be eligible for inclusion on the positive list. Background Diversion of putrescible waste was only eligible until 1 July 2012 as emissions from waste entering landfill after this date are covered by the carbon pricing mechanism and no longer eligible to generate offsets. Reasons for advice Many organic waste materials are commonly diverted from landfill. These materials usually require little or no sorting before re-use by processing facilities. The waste is processed at different types of facilities including composting, recycling, re-use and treatment facilities. Reclaimed wood can be used to generate electricity or to create chipboard. Green waste, manures and waste from food manufacturing or processing can be turned into mulch, compost and soil ameliorants. Accordingly, the DOIC does not recommend the diversion from landfill of any of the materials listed above for inclusion on the positive list. 5