A guide to the PyCCS method

Last updated 26 August 2026

Carbon estimation area outside the project area

A source separation activity may be one or more of the following:

(a) A new waste diversion activity, which involves:

(i) separating waste biomass type from a waste stream at the point of waste generation;

(ii) diverting the material from its original disposal pathway;

(iii) transporting the material within the activity area; and

(iv) either:

(A) processing the material at a nominated waste treatment facility or unit; or

(B) processing the material at a biomass pellet facility, where the biomass is converted into pellets using eligible waste treatment technology and the pellets are supplied to a nominated waste treatment facility or unit for use as fuel, with biochar recovered as a by-product.

During the relevant 24-month period for the project, material consisting of the same waste biomass type or types as the waste stream diverted by the activity must have been:

(i) generated in the activity area; and

(ii) either:

(A) disposed of in landfill;

(B) crushed and returned to farmland in an uncomposted state;

(C) burned; or

(D) otherwise improperly disposed of as waste.

(b) An expansion waste diversion activity, which involves expanding an existing source separation collection service.

A waste diversion activity of this type must involve waste biomass that is:

(i) separated at the point of waste generation from a single waste stream; and 

(ii) diverted from source; and 

(iii) processed at a nominated waste treatment facility or unit. 

During the relevant 24-month period for the project, material consisting of the same waste biomass type or types as the waste stream diverted by the activity must have been:

(i) generated in the activity area;

(ii) diverted by the existing activity; and

(iii) processed at a nominated waste treatment facility or unit.

(c) An aggregated waste diversion activity, which occurs where waste biomass collected as a result of multiple new or expansion waste diversion activities is processed at a nominated waste treatment facility or unit.

Where AQS biochar is applied to a carbon estimation area outside the project area (that is, a non-carbon estimation area), the area is not required to be subject to an eligible management activity. The quantity of AQS biochar applied must be calculated at a 95% confidence level.

Establish the project area

Identify the activity area from which the waste biomass type or types used by the project are generated and diverted.

The activity area must meet the eligibility requirements set out in Section 16.

Where the project involves multiple waste biomass types or multiple activity areas, each waste biomass type must be associated with the activity area in which it is generated and from which it is diverted.

Identify your project area using the BidCarbon Mapping Tool and make sure this area meets the eligibility requirements in Subdivision B of Division 1 of Part 3. The application of AQS biochar to eligible land is permitted.

Then, divide or ‘stratify’ the project area into a combination of carbon estimation areas (CEAs) and exclusion areas. CEAs are the areas of your project in which you will carry out the project management activities, where carbon will be stored, and for which you may be issued BidCarbon Units.

The boundary of each CEA must be defined using the BidCarbon Carbon Farming Mapping Guidelines. Use the BidCarbon Carbon Farming Mapping Guidelines to ensure the map of your project area that identifies your CEAs meets the requirements of the PyCCS Method.

Your project area can contain one or more CEAs. However, only one type of project management activity can occur in each CEA (Section 18). A CEA may be a single area of land, or it can be split by exclusion areas. Exclusion areas are those parts of your project area that will not store carbon and where project activities will not be conducted. Rocky outcrops, dams, buildings, certain soil types and cleared forests and drained wetlands are examples. You can have more than one exclusion area in your project area, and you must show them on the map.

Because the offsets for a project are calculated for each CEA and then added up, and not averaged over the project area, you must stratify your project area into CEAs and exclusion areas before you apply to run a project. Section 20 outlines how you can re-stratify (re-define), add or remove CEAs as a project progresses.

Establish the activity area

Source separated organic waste

How a PyCCS project is established and operated is critical to determining the emissions attributable to the project and, consequently, the amount of abatement achieved and the number of BidCarbon Units that may be issued in respect of the project. Parts 3 and 4 of this PyCCS Method set out in detail the requirements for establishing and operating a project, calculating the volume of emissions avoided, and determining the net abatement achieved.

The establishment and operation of a PyCCS project can be divided into the following parts. The main components of a PyCCS project are described in this section.

Establishment of a new facility or unit

To establish a new facility or unit, a project must create additional capacity to process eligible waste.

A waste treatment facility or unit may include:

an alternative waste treatment (AWT) facility, including:

a reactor;

a generator; or

an electric processing unit; and

a small-scale technology unit, including:

an air curtain burner;

a biochar kiln;

a biochar TLUD (Top-Lit Updraft);

a TLUD cookstove;

a retort; or

a flame-cap trough.

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