Two landfill sites in Western Australia are among the nation's first approved carbon farming projects.
The federal government announced today that gas capture projects at South Cardup and Mirrabooka will convert 130,000 tonnes of dangerous gases each year into renewable energy.
The projects will be operated by renewable energy generator LMS Energy.
Parliamentary Secretary from climate change and energy efficiency, Mark Druyfus, said the projects were a milestone for the Carbon Farming Initiative.
"These successful CFI landfill projects are helping our communities tackle climate change by turning harmful gases from decomposing rubbish into clean, renewable energy," Mr Druyfus said in a statement.
"Australian businesses will be able to buy carbon credits from LMS, knowing these offsets are producing multiple benefits for the community."
LMS will also operate CFI projects at landfills in Darwin and at Buderim in Queensland.