Do voluntary greenhouse gas markets create incentives for LFG energy projects?
Due to the high costs of installing and operating gas collection and control systems, the voluntary installation of such systems is more likely to occur when financial incentives are present, such as greenhouse gas emission reduction credits or the sale of renewable energy credits generated at an LFG energy facility. In these cases, the presence of greenhouse gas markets and LFG energy projects contributes to lower fugitive methane emissions from unregulated landfills by providing the incentive for collection and control beyond what is required by regulation. In fact, for a gas collection and control system to be eligible to generate greenhouse gas credits, a project developer has to demonstrate that the project results in methane destruction beyond what is required by Federal, state, and local requirements and “business as usual.
