The weak EU carbon prices means landfill operators can expect lower carbon compliance costs when the first auction of carbon permits begins in 2014.

“We will continue with our plans to link with the European emissions trading scheme from 1 July, 2015,” Climate Minister Greg Combet said.

“But this year’s budget, as is usual practice by Treasury, will include a revised forecast for a carbon price in 2015-16.”

Bloomberg New Energy Finance carbon-market analyst Hugh Bromley said: “The government will start auctioning carbon units in early 2014 and it’s possible that these allowances will sell for just two to three Australian dollars.

"A carbon price this low will encourage almost no reduction in domestic emissions and will certainly not meet the scheme’s objective to encourage investment in clean energy.”

Waste emissions up in 2012

Despite falling significantly over the last decade, greenhouse gas emissions from waste management were up slightly in 2012.

The figure comes via the release of the latest quarterly update from the Department of Climate Change and Energy Efficiency.

According to the last figures across the year to December 2012, annual emissions from waste increased 0.3%.

The waste sector includes emissions from landfills, wastewater treatment, waste incineration and the biological treatment of solid waste.

Further, in 2012 waste accounted for 2% of Australia’s national inventory.

The increase comes despite a strong decline since 1990, with emissions from the waste sector declining by around 26.3% during that period.

Overall, emissions fell to 12.8 million tonnes of CO2 equivalent in 2012, compared to 17.4Mt of CO2 equivalent in 1990.