A Perth company has solved a major environmental issue by developing bio-degradable coffee pods made out of a vegetable.

On their website Community Pod, which is co-funded by social entrepreneurs Mark Grogan and Megan Watson, claims more than one billion coffee pods, Australians consume annually, take several hundred years to break down.

The coffee pods produced by the Perth innovator is filled with locally roasted coffee and can be buried in people's backyard as they will decompose in just six month.

If you don't want to compost the pods yourself they can be sent back or picked up for recycling.