Factsheet: Australian Government Action on Climate Change
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The Australian government is taking action to address climate change through reducing emissions, transitioning to renewable energy and clean technologies, and building resilience. Key policies include the Emissions Reduction Fund, Renewable Energy Target, and supporting innovation. Australia has steadily reduced emissions while the economy has grown and is on track to meet its 2020 target. Analysis shows the government's policies could achieve its 2030 target of reducing emissions 26-28% below 2005 levels through continued transition of the energy and transport sectors.
Factsheet: Australian Government Action on Climate Change
- 1. environment.gov.au CC142.0516 The Australian Government’s action on climate change Australia is meeting our climate change targets, improving the environment and supporting an effective international response. The Government’s policies reduce emissions by boosting energy productivity, reducing waste, rehabilitating degraded land, increasing renewable energy and driving innovation. The Government’s policies are addressing climate change while helping to reduce costs for households and businesses. Australia’s emissions reduction targets Australia has a good track record of addressing climate change through strong targets and effective policies. Australia’s climate change targets By 2020, Australia will reduce its emissions to five per cent below 2000 levels. By 2030, Australia will reduce its emissions to 26 to 28 per cent below 2005 levels. At the recent Paris Climate Change Conference, all 197 UN countries agreed to take strong action to reduce emissions. It is important that all countries, and especially major emitters, work together to reduce emissions. Australia is responsible for around 1.3 per cent of global emissions. Figure 1: Australia has steadily reduced the task of meeting its 2020 target and is now on track to meet and beat this target by 78 million tonnes Source: Department of the Environment analysis Our 2030 target will see Australia’s emissions per capita fall by 50 to 52 per cent and the emissions intensity of the economy by 64 and 65 per cent between 2005 and 2030. These are among the biggest reductions internationally. Photo: (top) Courtesy of ARENA
- 2. environment.gov.au 2 Figure 2: Australia’s 2030 target compared with others Source: Australian Government analysis based on countries’ intended nationally determined contributions submitted to the United Nations Framework Convention on Climate Change. Future emissions of China are based on analysis by the London School of Economics. China and the United States have submitted target ranges—the lower end of these ranges is presented here. The upper end for each country is 107 per cent and 28 per cent respectively. Figure 3: Change in Emissions Intensity—2030 Target Relative to 2005 Source: Department of the Environment, GDP data from Commonwealth of Australia 2014-15 Budget and OECD database (2014) Note: For the purposes of this chart the US’ 2025 target has been extrapolated to 2030 by extending a straight line of its reduction from 2020 to 2025. Figure 4: Australia’s 2030 target involves significant reductions in emissions, emissions per person, and emissions per dollar of GDP Source: Department of the Environment analysis Figure 5: Change in Emissions Per Person—2030 Target Relative to 2005 levels Source: Department of the Environment; Population from Commonwealth of Australia, 2015–16 Budget (Australia) and UN World Population Database (other countries) Note: For the purposes of this chart the US’ 2025 target has been extrapolated to 2030 by extending a straight line of its reduction from 2020 to 2025. Photo: River red gums in the Barmah State Forest (John Baker)
- 3. environment.gov.au 3 Australia’s climate change policies The Government has a suite of policies to: • reduce Australia’s emissions • support clean and efficient energy • build resilience to the unavoidable impacts of climate change • support an effective international response to climate change. Reducing Australia’s emissions The Emissions Reduction Fund The Emissions Reduction Fund and the Safeguard Mechanism are at the core of the Government’s approach to climate change. The $2.55 billion fund is supporting Australian businesses, communities and landholders to undertake activities which reduce or avoid greenhouse gas emissions. The fund supports a variety of projects, including improving energy efficiency, capturing methane from landfills and storing carbon in forests and soils. To date the Emissions Reduction Fund has purchased 143 million tonnes in emissions reductions from hundreds of projects at an average price of $12.10 per tonne. The Emissions Reduction Fund’s Safeguard Mechanism ensures emissions reductions purchased by the Government are not offset by significant rises in emissions above business-as-usual levels elsewhere in the economy. The Safeguard Mechanism will start on 1 July 2016. The Emissions Reduction Fund is helping Australian businesses and landholders to cut emissions, boost productivity and improve their land Vegetation At the 154,000 hectare Moombidary Station in southern Queensland, landholders will sequester more than one million tonnes of carbon by regenerating native vegetation. Industrial fugitives Energy Developments Limited is building a coal mine waste gas power station in Queensland’s Bowen Basin. The project will generate enough electricity to power the equivalent of about 25,000 homes, reducing greenhouse gas emissions by displacing more emissions-intensive electricity generation. Energy efficiency Adelaide Brighton Cement is using alternative, low emission but energy rich fuels to replace gas as a source of thermal energy in the cement manufacturing process. Waste Quantum Power Limited in Goulburn, New South Wales, is using biogas from organic waste to generate renewable electricity providing energy savings for Southern Meats. Savanna burning The Fish River Fire Project, 200 km south-west of Darwin, is reducing carbon emissions through controlled burns early in the dry season to avoid more dangerous wildfires later in the season. Fish River Station is managed by the Indigenous Land Corporation in partnership with traditional owner groups. Photo: Courtesy of ARENA
- 4. environment.gov.au 4 Phasing out harmful HFCs HFCs—or hydrofluorocarbons—are potent greenhouse gases used in refrigerators and air conditioners. The Government is working with industry to fast track work to reduce domestic emissions of HFCs by 85 per cent by 2036. Australia is working internationally under the Montreal Protocol to secure agreement to a global phase-down on the same timeframe. The Government has recently completed a comprehensive review of Australia’s ozone protection and synthetic greenhouse gas programme, which identified a range of options to help achieve a domestic HFC phase-down. Supporting voluntary action The Government is helping businesses and people who want to take action to reduce carbon pollution. The National Carbon Offset Standard provides a benchmark for businesses seeking to be carbon neutral for their operations, products, services or events. The Carbon Neutral Program provides a framework for certifying carbon neutrality against the standard. Some of Australia’s best-known businesses are carbon neutral certified, including banks, legal firms, airlines, councils, property groups and small businesses. The Government is working to expand the standard so that precincts, cities and buildings can be certified as carbon neutral. Supporting clean and efficient energy Growing renewable energy The Renewable Energy Target will ensure around 23 per cent of Australia’s electricity comes from renewable sources by 2020. The scheme is helping Australian households and businesses to install solar and other renewable energy technologies, transforming our electricity sector to cleaner and more diverse sources, and supporting growth and employment in the renewable energy sector. Through the Renewable Energy Target, the Government is continuing to help households wishing to install rooftop solar panels or solar hot water systems. So far, almost 2.5 million households have solar systems—one of the highest levels of uptake in the world. Supporting innovation and technology development A global clean energy revolution is underway, and Australia is a part of it. The Government has refocused the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC) to drive innovation in clean energy technologies and create the jobs of the future. The Government has established a $1 billion Clean Energy Innovation Fund, which will help emerging clean energy technologies make the leap from demonstration to commercial deployment. The Government is delivering a $350 million solar strategy and has committed $100 million to the deployment of new large-scale solar projects, with 22 projects being assessed by ARENA. Internationally, Australia has joined with the United States, China and 17 other countries in seeking to double investment in clean energy innovation over the next five years through the Mission Innovation initiative. Photo: Soil carbon (Andy Heaney)
- 5. environment.gov.au 5 Driving innovation in large-scale solar The Government is working to make large-scale solar in Australia more competitive with other sources of energy generation. This will allow Australia to capitalise on its world-leading solar resource. Through ARENA, the Government provided $166.7 million in support to build Australia’s two largest solar photovoltaic plants. The 102 MW Nyngan and 53 MW Broken Hill Solar Plants together produce approximately 360,000 MWh of renewable energy annually, enough to power more than 50,000 average Australian homes. Photo: Courtesy of ARENA Making more productive use of Australia’s energy The National Energy Productivity Plan will reduce the amount of energy used for every dollar of economic activity by 40 per cent between 2015 and 2030. The plan includes measures to make energy choices easier, to drive innovation and more effective modern markets, and to improve the efficiency of appliances, equipment, buildings and transport. The plan will reduce consumer energy bills, reduce our emissions, and improve our competitiveness and economic growth. Actions under the plan include expanding the successful Commercial Building Disclosure program to cover mid-size buildings, expanding National Australian Built Environment Rating System tools, and working on new standards under the National Construction Code, working with industry leaders to improve performance, and finalising a new strategy on Government energy use. More efficient and cleaner vehicles The Government has established a ministerial forum to explore options for improving the fuel efficiency of Australia’s vehicle fleet. This includes consideration of Euro 6 standards, improved fuel quality standards and measures to increase the fuel efficiency of light vehicles. The outcome will be a detailed plan to reduce vehicle emissions and help consumers lower the cost of running their vehicles. The Emissions Reduction Fund offers opportunities to improve the efficiency of heavy vehicles in Australia, and further work is being progressed internationally on heavy vehicle efficiency through the G20 Transportation Task Group. Building resilience to the unavoidable impacts of climate change Some climate change impacts will be unavoidable. Australia is well positioned to manage the risks of a variable and changing climate. All levels of government, business and the community have a role to play in preparing for future climate change impacts. One of the most important roles of the Australian Government is to provide national climate change science and adaptation information to guide decision-making. The Government has committed $9 million to the National Climate Change Adaptation Research Facility. This facility will produce CoastAdapt, an online tool to help local governments and other decision-makers plan for sea level rise and other coastal risks. The facility is also producing essential information to support adaptation planning for Australia’s ecosystems, settlements and infrastructure, economy and institutions, and vulnerable communities.
- 6. environment.gov.au 6 Protecting the Great Barrier Reef from the impacts of climate change The Australian Government is firmly committed to maintaining the health and resilience of the Great Barrier Reef. The Reef 2050 Plan is a 35 year blueprint for the management and protection of the reef. Developed in partnership with scientists, communities, traditional owners, industry and non-government organisations, the Reef 2050 Plan focuses on developing reef resilience in the face of a variable and changing climate. The Australian Government has acted quickly to deliver key actions such as: • banning the sea disposal of capital dredge material in the Great Barrier Reef Marine Park • delivering $171 million of new funding for the reef on top of our existing $140 million commitment to the Reef Trust. All up Australian governments are committing $2 billion to the health of the reef through the Reef 2050 Plan • supporting robust science including through the National Environment Science Program Tropical Water Quality Hub, to which it has already allocated $32 million • establishing independent scientific and stakeholder advisory bodies to ensure decisions are based on the best available information • developing an investment baseline to inform a Reef 2050 Investment Framework to guide future investment in the reef, including through innovative financial mechanisms. The Government’s commitment to protecting the reef has been recognised internationally by the UNESCO World Heritage Committee, which has noted Australia is a global role model for the management of World Heritage properties. Photo: Slashers Reef (GBRMPA) Supporting an effective international response to climate change Climate change is a global issue. All countries must work together to address it. The Paris Agreement Australia played an active and important role in shaping the Paris Agreement. We were among over 170 Parties to sign the agreement in April 2016. Australia’s strong track record on climate change means we are well-placed to contribute towards the Paris Agreement’s long-term goals to hold global temperatures well below two degrees Celsius, and to achieve global net-zero emissions in the second half of the century. The Government has begun its process towards ratification of the Paris Agreement and will seek to ratify this year. Australia works with other countries to deliver innovative and practical actions on climate change. We help our partners, particularly in the Indo-Pacific, to reduce emissions and manage climate impacts, while building infrastructure, delivering economic growth and improving the environment. We are a major contributor to international initiatives like the Green Climate Fund and the Global Green Growth Institute. Australia has pledged $200 million over four years to the Green Climate Fund to support developing countries to grow their economies in a sustainable way and help adapt to climate change. More broadly, Australia is working with partner countries to build their capacity to take domestic action to reduce greenhouse gas emissions and adapt to the effects of climate change, backed by a commitment to spend at least $1 billion in climate finance over the next five years.
- 7. environment.gov.au 7 Protecting the world’s rainforest and ocean ecosystems for carbon, biodiversity and livelihoods Australia is working closely with countries in our region, and with the private sector, to establish the AsiaPacific Rainforest Partnership, which helps developing countries reduce emissions in their forests through the implementation of REDD+. At the Paris Climate Conference, Australia launched the International Partnership for Blue Carbon to enhance the protection and restoration of coastal and marine ecosystems that sequester carbon. This initiative will connect governments, marine researchers and civil society and promote practical action to protect areas of mangrove, seagrass and saltmarsh. Photo: Rainforest (Paradise Ink) Australia’s progress in reducing emissions Australia has a strong track record of meeting its emissions reduction commitments. Australia overachieved on its first Kyoto Protocol target (2008–2012) by 128 million tonnes. Emissions projections released in April 2016 forecast that Australia will also overachieve on its 2020 target by 78 million tonnes. This is an improvement of 833 million tonnes since 2012, when Australia was projected to have a shortfall on its 2020 target of 755 million tonnes. Australia’s economy is becoming less emissions intensive. Between 2000 and 2013 emissions have fallen, while the economy grew by nearly 50 per cent. In the same period, emissions per dollar of GDP have fallen by 33 per cent and emissions per person by 19 per cent. Figure 6: Australia has closed the gap since 2014-15, and is on now track to achieve its 2020 target Source: Department of the Environment, ‘Tracking to 2020 – April 2016 Update’, 2016
- 8. environment.gov.au 8 Figure 7: Australia’s economy is becoming less emissions intensive Source: Department of the Environment analysis Achieving Australia’s 2030 target Australia is meeting its 2020 target through policies that reduce emissions, increase energy productivity, drive innovation, boost the uptake of renewable energy, and improve the health of soils and the environment. These policies also provide the basis for meeting Australia’s 2030 target. Indicative analysis (Figure 8) shows the scale of emissions reductions that can potentially be achieved from these policies. A recent study by Energetics (Figure 9) has similarly identified that there are significant opportunities to reduce emissions that can be realised through the Government’s policies. During 2017, the Government will look at how to best calibrate policies beyond 2020 in order to realise these opportunities. Figure 8: Australia can achieve its 2030 target through targeted policies Source: Department of the Environment; chart represents indicative estimates. Actual emissions reductions will depend on final policy design, and the amount of emissions reductions required to meet Australia’s 2030 target will depend on future emissions trends. Figure 9: There are significant opportunities to reduce emissions to achieve our 2030 target Source: Energetics, ‘Australia’s 2030 climate change emissions reduction target – abatement potential’, report to the Department of the Environment, 2016 © Commonwealth of Australia, 2016. This fact sheet is licensed by Commonwealth of Australia under a Creative Commons Attribution 4.0 International licence.