Accelerating the Adoption of Methane-Reducing Feed Additives: Industry-Led Solutions and the Pathway to ACCU Integration

As global climate efforts ramp up, Australia’s livestock industry is stepping up to reduce greenhouse gas emissions. Methane-reducing feed additives are gaining attention as a solution to directly mitigate emissions from ruminant livestock, but recent developments under Australia’s emissions offset scheme, the Australian Carbon Credit Unit (ACCU) scheme reveal that the pathway to full integration will take time. While the government has prioritized four new ACCU scheme methodologies, the proposed "Reduction of Enteric Methane Emissions in Ruminant Livestock from Feed Additives and Forage" methodology was not prioritised for immediate development. However, the review process offers encouraging insight, and industry leaders are actively creating alternate pathways to drive adoption of new practices and technologies to reduce their emissions or store carbon.

New Carbon Methodologies and Positive Feedback for Feed Additives

On October 30, 2024, the Australian government announced support for four new ACCU scheme methodologies, including Improved Native Forest Management, Extended Savanna Fire Management, Avoided Clearing of Native Regrowth, and Reduced Disturbance of Coastal Wetlands. Although the feed additives method was not prioritized in this round, the Emissions Reduction Assurance Committee (ERAC) noted its strong alignment with the scheme’s Triage Criteria and indicated support for advancing the methodology in future rounds, pending additional evidence and refinements.

The Committee’s assessment highlights feed additives’ potential to achieve meaningful methane reductions in ruminant livestock and suggests that, with further development, the methodology could soon progress under the ACCU scheme. This recognition affirms the industry’s commitment to sustainable practices and reinforces the importance of a government-endorsed pathway to maximize impact.

Carbon Insetting and Voluntary Markets: Industry Takes the Lead

With the ACCU scheme pathways requiring further refinement, the livestock sector is actively pursuing carbon insetting to implement methane reductions and achieve carbon neutrality targets. Unlike offsetting, insetting involves generating credits for emissions reductions within a company’s own supply chain, allowing producers to take direct action while awaiting a formal pathway to ACCU scheme integration. Through carbon insetting, livestock producers are willing to partner on trials with feed additive developers to establish and test protocols, demonstrating their commitment to carbon mitigation.

Voluntary carbon markets provide established methodologies that enable producers to claim carbon credits for methane reductions achieved through feed additives. Verra’s Verified Carbon Standard (VCS), VM0041 methodology, for instance, offers a grounded framework for quantifying reductions, allowing producers to engage in carbon crediting as an alternative to ACCU validation. The industry’s proactive approach highlights a willingness to take mitigation into their own hands, working towards sustainability by developing and adopting their own methodologies while contributing to global climate goals.

Spreading Costs Across the Supply Chain 

Implementing methane-reducing feed additives can bring additional costs, but by adopting carbon insetting, producers can generate credits that effectively offset these expenses. Many stakeholders within the supply chain—including processors, retailers, and end consumers—are also willing to share the costs, recognising the value of sustainably produced meat and dairy. This distributed model not only eases the financial burden of adopting sustainable practices across the supply chain, but also meets market demand for low-emission products, creating a win-win for both producers and consumers.

 Aligning Government and Industry-Led Solutions

The industry’s commitment to carbon mitigation demonstrates a forward-thinking approach, setting a foundation for when methodologies for the ACCU scheme expand. The Committee’s constructive feedback on the feed additive method proposal indicates a future pathway, and with additional data and successful trials, the methodology could advance within the ACCU scheme. Livestock producers investing in voluntary credits now will need to be prepared with new eligible projects to benefit from ACCU integration later. 

Conclusion

Australia’s ruminant livestock industry is pioneering direct methane reduction through voluntary markets, insetting, and partnerships with feed additive developers. By leveraging these avenues, producers are achieving significant emissions reductions today while paving the way for future integration across the supply chain based on the ACCU scheme incentives.

As methane-reducing feed additives become central to Australia’s climate strategy, the livestock sector exemplifies how industry-led innovation, supported by consumer demand and regulatory frameworks, can drive impactful climate action.