Australia’s greenhouse gas emissions fell 1.4 per cent in the year to March 2025.
National emissions have been estimated at 440.2 million tonnes of carbon dioxide equivalent (Mt CO₂-e), according to the latest National Greenhouse Gas Inventory.
That figure is 28 per cent below 2005 levels and keeps the country on track toward its 43 per cent cut by 2030 under the Paris Agreement.
Electricity sector emissions dropped 0.5 per cent over the year, reflecting record levels of grid-scale solar and a March-quarter high for wind generation.
Renewable generation rose 5.6 per cent year-on-year, offsetting strong demand during hot summer conditions in Victoria and South Australia.
As a result, emissions intensity in the National Electricity Market fell to 0.51 tonnes CO₂-e per megawatt hour – the lowest March-quarter figure on record.
Other sectors also contributed to the national fall.
Stationary energy (excluding electricity) dropped 2.7 per cent, driven by lower coal use in metal manufacturing and reduced residential gas demand. Industrial processes and product use fell 4.7 per cent due to cuts in steel production, abatement in nitric acid plants, and lower imports of hydrofluorocarbons. Fugitive emissions declined 2.2 per cent, with reductions linked to new carbon capture and storage activities, including the Moomba CCS project commissioned in September 2024.
Agriculture emissions were down 1.3 per cent as sheep and cattle numbers declined, while waste and land-use figures remained flat in the quarterly reporting framework. By contrast, transport emissions rose 0.5 per cent, reflecting surging road diesel demand and a 2.8 per cent jump in domestic jet fuel use.
Transport now makes up 22.4 per cent of national emissions, with diesel consumption driven by freight growth and Australia’s rapidly expanding diesel vehicle fleet.
Preliminary figures suggest a sharper national decline for the full financial year to June 2025, with emissions estimated at 436 Mt CO₂-e – a 2.4 per cent fall from the previous year.
Electricity sector emissions alone dropped 3.2 per cent across that period, signalling an accelerating shift to renewables.
“Our practical policies, including cheaper home batteries, our reliable renewables plan and the safeguard mechanism, are working to drive down emissions across the economy – and we are making good progress,” said Climate Change and Energy Minister Chris Bowen.
“With over 37,000 Cheaper Home Batteries installed with our support since 1 July, our policies are having a real impact on emissions and helping households with their energy bills.”