Develop a comprehensive emissions reduction strategy

The Australian Government is developing a Long-term Emissions Reduction Strategy, which it will take to the 26th United Nations Framework Convention on Climate Change Summit in Glasgow in 2021.82

To create this strategy, governments need an emissions profile for each sector so they can precisely coordinate value-for-money, effective cross-sectoral emissions reduction plans. This will enable them to meet targets by identifying the most effective sector and cross-sector actions to support emissions reductions. Governments already have access to this data. For example, the National Inventory provides greenhouse gas emission estimates by economic sector, and the State and Territory Greenhouse Gas Inventories provide an overview of each state and territory's annual greenhouse gas emission estimates.83

Whether it is mandated or a target, the trajectory of emissions reduction is an important consideration when planning for infrastructure as part of a transition away from energy-or carbon-intensive infrastructure assets. While there are forward-looking plans to capitalise on low-emissions technology, there needs to be further work on planning for the withdrawal of large carbon-intensive assets to conform with government aims.

By doing so, Australia can capitalise on the opportunities presented by new and emerging technologies.

Government emissions-reduction strategies should identify near-term opportunities. They should also plan for staged investment in sectors that require either more time or further research and development before transitioning to a low-emissions future.

As Table 2.3 shows, the contributions that past, present and estimated emissions make to Australia's overall total vary considerably by sector. The electricity sector and transport sector account for 51% of Australia's total emissions.84 Since 2016, emissions in electricity have fallen as large amounts of renewable generation have entered the market.85 This trend is expected to continue, as discussed in the Energy chapter of this Plan.

Transport emissions have grown faster than any other sector, increasing by 60% since 1990.86 Light vehicles now make up 41% of all transport emissions.87 This is predominantly due to Australians' reliance on private vehicles, which has grown since the COVID-19 pandemic.88 The transport sector should therefore be prioritised for emissions abatement.

Sector emissions summaries, alongside other emissions profiles, are useful tools for governments and private sector decision-makers when monitoring and planning long-term, phased-in emissions reductions.

Table 2.3: Sectors' emissions contributions vary so they need tailored reduction strategies

Notes

Mt CO2-e: Million tonnes of carbon dioxide equivalent

2005: Actual emissions for year to June 2005, as of September 2020 inventory (released 2021)

2020: Actual emissions for year to September 2020, as of September 2020 inventory (released 2021)

2030: Projected emissions for 2030, as of December 2020 projections (released 2020)

Totals may not add up due to rounding.

Source: Department of Industry, Science, Energy and Resources (2020, 2021)89