Australia’s Emissions Fall 1.9% as Record Renewables Cut Power Sector Pollution

Australia’s greenhouse gas emissions fell by 8.5 million tonnes over the year to September 2025, marking a 1.9% decline and one of the fastest annual reductions outside the COVID-19 period, according to new quarterly data.

The figures show emissions are now 27.4% below 2005 levels — the baseline year under Australia’s commitments to the Paris Agreement — keeping the country on track to meet its 2030 climate targets.

The decline was driven by reduced emissions across electricity, transport, stationary energy and fugitive emissions. Notably, it marks the first drop in transport emissions since the pandemic, supported by a sharp rise in electric vehicle uptake and lower fuel use.

Australia recorded several milestones during the reporting period, including record-high levels of renewable energy in the grid, which delivered record-low emissions per megawatt-hour. Electric vehicle sales have more than tripled over the past three years, accounting for 13.1% of new car sales in 2025. New carbon capture and storage projects also contributed to lower emissions in the oil and gas sector.

Preliminary estimates for the year to December 2025 indicate a 4.3% drop in emissions within the National Electricity Market (NEM), with overall national emissions projected to be 27.6% below 2005 levels.

Climate Change and Energy Minister Chris Bowen said the data confirmed that Australia’s emissions trajectory is moving in the right direction.

“Our commonsense approach, which includes cheaper home batteries, more affordable clean energy and greater access to cheaper-to-run vehicles, is working to drive down emissions across the economy,” Bowen said.

He added that continued policy support would be essential to maintain progress toward 2030 targets, warning that a slowdown in renewable energy deployment could reverse gains made to date.

The latest figures reflect updated measurements for previous quarters as data becomes more precise, while reinforcing the broader downward trend in national emissions.