Australia

General energy system and GHG emissions

Energy in Australia is derived predominantly from fossil fuels (crude oil (34%), black coal (29%), natural gas(18%), brown coal (13%)) with renewables comprising only 6%. In 1997, over 48% of Australia's total primary energy was consumed by the industrial sector, 27% by the transportation sector, 15% by the residential sector and 10% by the commercial sector. Sectoral energy-related carbon emissions mirror the sectoral distribution of energy consumption, with 46% resulting from the industrial sector, 28% from the transportation sector, 15% from the residential sector and 11% from the commercial sector.

General information on Australia´s economy, energy systems, the fossil fuel reserves, environment are provided at the Energy Information Administration .
Detailed information regarding national GHG inventories, climate change, research activities, projects etc. are available at the "Second National Communication" (Australia´s Second National Report under the United Nations Framework Convention on Climate Change, November 1997). It gives an overview of the national circumstances that influence Australia´s response capacity, an provides an update of both the continuing and additional strategies and measures that have been adopted to address the enhance greenhouse effect. The Third National Communication was released in August 2002.


The National Greenhouse Gas Inventory provides the latest report on Australia's greenhouse gas emissions. This inventory incorporates improvements in data collection methods that have been used to update emission estimates in the 1990-2000.

In 1999, Australia's net greenhouse gas emissions totalled 458.2 million tonnes of carbon dioxide equivalent excluding the contribution of the Forest and Grassland Conversion (land clearing) subsector. Total net national greenhouse gas emissions (not including land clearing) increased by 17.4% (67.9 Mt) over the period 1990 to 1999. From 1998 to 1999, emissions increased by 1.1% (4.9 Mt).

The Energy sector accounted for 79.6% of total net national emissions in 1999. Energy emissions increased by 21.7% from 299.5 Mt to 364.6 Mt between 1990 and 1999, with a sharp rise from 1994 to 1998. Stationary Energy (comprising Energy Industries, Manufacturing Industries and Construction, Other Sectors, and Other) was the main contributor, accounting for 56.7 % (259.8 Mt) of total net national emissions, followed by Transport with 16.1% (73.9 Mt). Stationary Energy emissions increased by 24.6% (51.3 Mt) between 1990 and 1999, and by 1.2% (3.2 Mt) from 1998 to 1999. Agricultural emissions made up 20.5% of the total for 1999. Agriculture contributed 93.8 Mt in 1999, a 1.9% (1.7 Mt) increase from 1998 and a 2.9% (2.7 Mt) increase from 1990.

The Forestry and Other subsectors constituted a sink of 25.9 Mt in 1999 (equivalent to 5.6% of total net national emissions). The net sink decreased by 5.1% (1.4 Mt) since 1990 but increased by 3.3% (0.8 Mt) since 1998.

Industrial Processes and Waste are minor sources of emissions contributing 2.1% (9.7 Mt) and 3.5% (16.0 Mt) of total net national emissions respectively. Emissions from Industrial Processes decreased by 19.8% (2.4 Mt) between 1990 and 1999 primarily due to reductions in perfluorocarbon emissions from aluminium smelting. There was a 1.8% (0.2 Mt) decrease from 1998 to 1999 as a result of further reductions in perfluorocarbon emissions. Waste emissions increased by 7.6% (1.1 Mt) between 1990 and 1999, and increased by 3.2% (0.5 Mt) from 1998 to 1999 due to an increase in methane generated and a decline in methane recovered from solid waste.
Incorporating the current best estimate of land clearing emissions, Australia's total net emissions were 529.9 Mt CO2-e in 1999 and 493.8Mt CO2-e in 1990. On this accounting basis, emissions are estimated to have increased by 7.3% (36.1 Mt) between 1990 and 1999, and 0.8% (4.2 Mt) from 1998 to 1999.

The ABARE Research Report 99.4 provides information on market developments and projections to the year 2014-2015 and covers all energy sources, all states and all sectors of the Australian economy.

General description of bioenergy systems

Bioenergy in Australia
Six per cent of total energy use in Australia comes from renewable sources. Renewable energy use is expected to expand significantly in Australia in the next decade. This is due both to market forces and government initiatives, such as the mandatory extra 2% target for renewable energy in the electricity market and a range of other programs administered by the Australian Greenhouse Office. Most of Australia has an abundance of sunlight and many parts have good wind, water or biomass resources.Bagasse currently represents about 2% of Australia's total primary energy consumption (Bush, Harris & Ho Trieu 1997). The steam produced from bagasse is used to drive sugar cane mills, for process heating, and for grid-connected electricity production. The sugar mills in Queensland, NSW and WA have a combined capacity of about 300MW (DPIE 1997). The increasing use of more efficient conversion systems and additional fuel inputs could easily treble electricity production from bagasse.
Wood represents 2.4% of Australia's total primary energy consumption (Bush, Harris & Ho Trieu 1997). About 75% of the heat energy produced from this wood is consumed as firewood in the residential sector, with about 22% of homes using fuelwood for primary heating (DPIE 1997). The remaining heat energy is used in the wood products, paper and food industries.
Hydro and solar represent 21% and 1%, respectively, of total energy use.
In the electricity sector, current use of renewable energy contributes approximately 10.7%, most of which is generated from large-scale hydro electricity schemes.
The installed electricity generating capacity from landfill gas in Australia was about 72MW in 1997 (DPIE 1997). Landfill gas projects are a recent development, with only 15 projects currently operating in Australia (Australian Greenhouse Office 1998). As the majority of landfill sites do not have gas recovery systems, there is significant scope for the expansion of landfill gas utilisation, but it will be unlikely to reach more than 300Mwe installed capacity.
The use of sewage gas for electricity production is increasing in Australia. In 1997, the installed sewage gas electricity generation capacity was about 7MW, which represents a 59% recovery of methane from wastewater treatment plants (Australian Greenhouse Office 1998). The capacity is expected to treble by the year 2010.
Australia produces about 40 million litres per annum ethanol from molasses and starch wastes. The Australian Renewable Energy Website provides data on wind, biomass, solar, wave and hydro energy.
Bioenergy activities in Australia currently include:
  • Demonstration of co-firing wood waste in coal-fired power stations
  • Research and demonstration of utilisation of charcoal in steelmaking
  • Demonstration of forest biomass for production of bioethanol
  • Commercial utilisation of charcoal in silicon smelting
  • Commercially operating fluidised bed combustors utilising wood waste, agricultural wastes, sewage sludge.
  • Demonstration of utilisation of municipal solid waste for bioenergy

Proposed activities include:
  • Harvesting environmental weeds (camphor laurel (Cinnamomum camphora) and Mimosa pigra) for bioenergy
  • Utilising forest biomass to supplement bagasse for electricity generation at sugar mills
  • Utilising oil mallee, grown for mitigation of soil salinity, for bioenergy and activated carbon in an integrated processing plant.
  • Utilising wood waste redirected from landfill for bioenergy

Land use, land use change, and forestry

The Australian Bureau of Statistics provides information on land use, land use change and forestry. Forests in Australia cover about 157 million hectares, which account for around 20% of land use. Just over one million hectares of these are plantations.


Forestry: In the National Greenhouse Gas Inventory (NGGI) (see chapter 3, page 29 of the "Second National Comunication"), managed forests, vegetation thickening on some cleared land and pasture improvement are the major means of carbon dioxide removal. The Forestry and Other subsectors constituted a sink of 25.9 Mt in 1999 (equivalent to 5.6% of total net national emissions). The net sink decreased by 5.1% (1.4 Mt) from 1990 to 1998 but increased by 3.3% (0.8 Mt) since 1998. Increasing the area of production forests, particularly through reforestation and farm forestry, provides an important opportunity for carbon sequestration, especially where there is low initial carbon content in soil and vegetation.

Vegetation: While there is considerable uncertainty in the data, the NGGI indicates that vegetation clearance for agriculture contributes significantly to Australia's greenhouse gas emissions. Increasing vegetation cover is an important means of broader objectives of ecologically sustainable development. In agriculture, for example, sustainable farming practices support productivity and the long term viability of agricultural enterprises. The maintenance and enhancement of vegetation cover can play an important role in the control of erosion and salinity.
The Australian Greenhouse Office The National Carbon Accounting System (NCAS) tracks greenhouse gas sources and sinks from the land.

National policies and measures

The Australian National Greenhouse Strategy outlines action to be taken by Australia such as:
  • enhancing greenhouse sinks;
  • encouraging sustainable forestry and vegetation management; and
  • reducing greenhouse gas emissions from agricultural production
For more information see the complete report "Australian National Greenhouse Strategy" and the 2000 Progress Report.
The Australian Greenhouse Office (AGO) is a government agency dedicated to cutting greenhouse gas emissions. It was established in 1998 as a separate agency within the environment portfolio to provide a whole of government approach to greenhouse matters, in recognition that greenhouse abatement is a cross-cutting issue. All sectors of the economy are implicated in the production of greenhouse gases. Similarly, each sector also presents opportunities for greenhouse abatement. The Government's $1 billion climate change agenda therefore targets emissions abatement on many fronts, including the following initiatives:
  • boosting renewable energy actions and pursuing greater energy efficiency
  • investing significant resources into greenhouse research and monitoring Australia's progress towards its Kyoto target through the National Greenhouse Gas Inventory
  • studying the landscape of Australia through the National Carbon Accounting System
  • investigating the possibility of a domestic emissions trading scheme
  • encouraging industry, business and the community to use less greenhouse intensive transport
  • fostering sustainable land management practices and providing impetus for greenhouse action through the Greenhouse Gas Abatement Program
The Greenhouse Gas Abatement Program (GGAP) is a major Commonwealth Government initiative to assist Australia in meeting its commitments under the Kyoto Protocol to the United Nations Framework Convention on Climate Change. The objective of GGAP is to reduce Australia's net greenhouse gas emissions by supporting activities that are likely to result in substantial emission reductions or substantial sink enhancement, particularly in the first commitment period under the Kyoto Protocol (2008-2012). $400 million has been allocated to the Program between 2000-01 to 2003-04.
The 2020 Vision, launched in October 1997 is a partnership between Commonwealth, State and Territory governments and industry that aims to treble the plantation area from about 1 million hectares in 1997 to 3 million hectares by the year 2020. In the early 1990s, the plantation estate was expanding by about 25 000 hectares a year. In 1999, the annual rate of planting had increased to nearly 95 000 hectares - exceeding the 2020 Vision target of planting at least 80 000 hectares a year. The majority of new plantations are occurring on cleared agricultural land and most are the result of substantially increased private investment. With the necessary land resources and an investment climate ranking with the best in the world, high productivity gives Australia an advantage over many other nations with similar resources. At least 3 million hectares of land across Australia - used mainly for marginal sheep and cattle production - is suitable for forestry plantation, so there is significant potential for plantation expansion. The Greater Green Triangle on the Victoria/South Australia border and Western Australia's South West are the major regions of recent plantation expansion. Further information is provided by the Media Release of the Minister for Primary Industries and Energy.

Bush for Greenhouse program encourages revegetation for greenhouse and other environmental benefits. A carbon broker has been appointed, and carbon accounting tools have been developed, to facilitate carbon trading from environmental plantings.
Action in the energy sector is identified as a national priority, essential for achieving the goal of limiting net greenhouse gas emissions. Major changes to the electricity supply industry resulting from micro-economic reforms currently underway nationally, and in a number of jurisdictions, aim to remove barriers to competition and introduce a national electricity market. Australia has seen steady growth in the use of natural gas in the energy sector, for electricity generation and for direct use. As a result of micro-economic reforms in the electricity and gas markets, this trend is expected to continue, resulting in a lowering of the average greenhouse gas intensity of energy.
Renewable Energy Programs

Australia has several programs to support increasing use of renewable energy. These include:
  • Supporting the use of renewable energy for remote power generation
  • Supporting the use of photovoltaic systems on residential buildings
  • Supporting renewable energy industry development activities (RECP SHOWCASE)
  • Equity funding for renewable energy (REEF)
  • A Mandatory Renewable energy Target
  • Alternative Fuels to reduce greenhouse gases and other vehicular emissions from Australia's road transport sector
For more information please contact the Renewable Energy Programs webpage of the Australian Greenhouse Office.
The Australian Government introduced the Mandatory Renewable Energy Target on 1 April 2001. The Renewable Energy (Electricity) Act 2000 requires the generation of 9,500 gigawatt hours of extra renewable electricity per year by 2010, enough power to meet the residential electricity needs of four million people.
Bioenergy Australia was formed in1997 and is an alliance of government and industry organisations promoting the development of bioenergy in Australia.
Its activities include:
  • Creating an awareness and understanding of biomass energy to a broad range of stakeholders and customer groups
  • Market facilitation and development
  • Facilitating the development of business and project opportunities
  • Broadening the support base for Bioenergy Australia to ensure its continued role in promoting biomass energy in Australia
Forming and managing groups to participate in the International Energy Agency's Bioenergy program.

Regional and local policies and measures

Electricity supply accounts for one third of North South Wales (NSW) greenhouse gas emissions with the majority of electricity being generated from the combustion of coal.
The NSW Electricity Retailer Greenhouse Benchmarks policy aims for a 5% reduction in per capita greenhouse emissions from electricity generation over 1989 level by 2007. A penalty of up to $15/t CO2 will be imposed for non-compliance. Carbon sequestration by sinks is an allowed abatement option.
NSW Sustainable Energy Development Authority (SEDA) promotes sustainable energy technologies, through education, support for commercialisation, and introduction of greenpower and building rating programs.

Implementation projects
Examples of bioenergy projects
  • Installation of 30MWe Biomass Cogeneration Plant at the Rocky Point Sugar Mill, south of Brisbane. The plant will operate year-round, using renewable biomass material such as bagasse and locally sourced green waste to provide green electricity to the Queensland grid.
  • Narrogin Bioenergy Plant, demonstrating integrated wood processing of oil mallee biomass to produce electricity, activated charcoal and eucalyptus oil. The oil mallee is planted in tree belts in the wheat cropping region of Western Australia, where it delivers salinity control benefits.
  • Delta Electricity projects with NSW Sugar Milling Coop (Condong and Broadwater) and co-firing at Wallerawang Power Station and Liddell Power Station
  • Visy biomass plant at pulp and paper mill, Tumut, NSW (20 MW).
  • Energy Equipment plants at Stapylton, Qld (5 MW FBC), similar plant under construction at Nowra
  • Anaerobic digestor at Camelia, NSW (not initially electricity)
  • Southwood proposal in Tasmania (35 MW)
  • 30 MW waste to energy proposal for Brighton, near Hobart
  • Major ethanol plants are at CSR Sarina in Qld and Manildra at Nowra, NSW. Also small ethanol plant at Rocky Point Sugar Mill, Qld.
  • Biodiesel plants - Moama Refinery, and pilot plant at Wyong
  • Biodiesel Project under construction in WA by Amadeus Petroleum


The Cooperative Research Center (CRC) for Greenhouse Accounting provides a report "Management Options for Carbon Sequestration in Forest, Agricultural and Rangeland Ecosystems".

The Bureau of Rural Sciences with University of Adelaide have produced a Bioenergy Atlas of Australia that details available biomass resources.

Research programs
The Cooperative Research Center (CRC) for Greenhouse Accounting has several objectives including :
  • assess which of the processes controlling carbon sequestration are most likely to change under atmospheric and climate change, or are likely to provide opportunities for enhanced sequestration or reduced emissions
  • develop more cost-effective methods for measuring and forecasting carbon stocks and their change in vegetation components (at scales ranging from project to continent) as an underpinning to carbon accounting and trading
  • understand environmental processes governing carbon densities and fluxes between soils and the biosphere; investigate current methods for measuring and verifying carbon stocks and fluxes in soils; and develop robust, cost-effective soil carbon accounting techniques
  • explore the effectiveness and feasibility of land management options for increasing carbon sequestration (as defined under the Kyoto Protocol, Articles 3.3 and 3.4; and to investigate the potential for adaptation by social and biophysical systems under global climate change
The research program of the CRC for Greenhouse Accounting is described in the Strategic Research Plan 2001-2004. Research progress is reported in the CRC Technical Publications and Annual Reports. The CRC newsletter eCarbon News provides topical updates on carbon accounting issues.

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