Australia’s Shift to Clean and Renewable Energy Drives Sharp Industrial Emissions Decline

The Australian Government has reported a significant decline in industrial emissions, highlighting the impact of its reformed Safeguard Mechanism in driving decarbonisation across heavy industry.

According to newly released data, net emissions from facilities covered under the Safeguard Mechanism fell by 5.5% year-on-year, marking a total reduction of over 12% since the reforms were introduced. Onsite emissions have decreased by 5.8 million tonnes over the past two years, equivalent to removing more than 2 million cars from the road.

The government stated that the decline reflects increased investment in clean technologies, including electrification, adoption of renewable energy, and deployment of systems designed to capture emissions at the source. These measures have also helped shield industries from volatility in global energy prices.

The number of facilities covered under the policy has also reduced, as several businesses have successfully lowered emissions below the required threshold through decarbonisation efforts.

In parallel, the government released its National Inventory Report for the 2023–24 financial year, incorporating updated emissions data and improved measurement methodologies. While land-sector emissions showed variability due to factors such as extreme weather events, overall emissions trends remain on a downward trajectory.

Excluding land use, emissions across the economy declined by 7.2 million tonnes compared to 2022–23, and are now 35.5 million tonnes lower than 2018–19 levels, representing a reduction of more than 6%.

Recent quarterly data further indicates that non-land emissions are falling at one of the fastest rates recorded outside the COVID-19 period, driven by reductions in electricity generation, transport, stationary energy, and fugitive emissions.

The government noted that the current pace of decline positions Australia on track to meet its climate targets while strengthening industrial resilience amid a shifting global energy landscape.