Australia’s Emissions Drop 2.2% in FY2025, Reaching 28.5% Below 2005 Levels Amid Rapid Clean Energy Expansion

Australia has recorded its biggest annual decline in greenhouse gas emissions outside the COVID-19 period, with new government data confirming a significant reduction equivalent to the entire domestic aviation sector’s yearly output.

According to the latest figures, national emissions fell by 2.2% in the year to June 2025, representing a cut of 9.9 million tonnes of CO₂-e. Total emissions for the period stood at 437.5 million tonnes, now 28.5% below 2005 levels, keeping the nation on track toward its 43% reduction target by 2030.

Preliminary data for the year ending September 2025 indicates an even stronger downward trend, with emissions dropping 2.8%, or 12.4 million tonnes, compared with the previous year.

Renewables Lead the Decline

Record renewable energy generation was the primary driver of emissions reduction, supported by the Albanese Government’s climate and energy policies, including reforms to the Safeguard Mechanism.

Electricity sector emissions fell 3.3% over the year to June 2025, underpinned by expanded solar and wind capacity. The national grid recorded its lowest-ever June quarter emissions intensity at 0.55 tonnes CO₂-e/MWh, while renewables reached a milestone 50% share of grid generation in October.

Since 2005, electricity emissions have declined 25%, and 30% since their 2009 peak.

Emissions also dropped across industrial processes and stationary energy, driven by technology upgrades, shifting production patterns, and reduced residential gas consumption.

Transport Emissions Still Rising

Despite broader progress, transport emissions continued to increase post-COVID, primarily due to higher road diesel use and growing domestic aviation fuel consumption. Petrol-based road emissions, however, remain 11.5% below pre-pandemic levels.

The federal government expects the New Vehicle Efficiency Standard to play a key role in reversing the upward transport emissions trend.

Government: Policies Delivering Results

Climate Change and Energy Minister Chris Bowen said the data reinforces that government policies are successfully accelerating the transition to clean energy.

“Our practical policies — including cheaper home batteries, our reliable renewables plan, and the safeguard mechanism — are working to drive down emissions across the economy,” Bowen said.

He highlighted that more than 135,000 Cheaper Home Batteries have been installed since July, reducing both emissions and household energy costs.

Bowen cautioned that progress could be jeopardized if renewable energy rollout is slowed.

“The progress can all be undone if the Coalition get their way… stopping the renewables rollout and relying on ageing, unreliable coal,” he said. “Their plan will cost Australians more.”