The Hon. Chris Bowen, Minister for Climate Change and Energy, Media Release, 25 August 2025
Australia is tracking well to meet its 2030 climate pollution target, with new emissions data showing emissions fell by 1.4 per cent or 6.5 million tonnes of carbon dioxide equivalent in the year to March 2025, driven largely by the Albanese Government’s policies.
In that period, 440.2 million tonnes of carbon dioxide equivalent emissions were recorded, which is 28 per cent below 2005 levels – the base year for Australia’s 2030 Paris Agreement target – and well on the way to reaching the 43 per cent goal.
Renewable energy generation continues to drive emissions in the energy sector, while our reformed Safeguard Mechanism is driving investment in industrial decarbonisation and securing steady progress.
Across Australia’s two main grids, renewable energy has now reached over 40 per cent of all energy produced in the last financial year, with solar and wind capacity up 45 per cent since we came to Government – more new capacity than four Snowy Hydro schemes.
Emissions in the year to March 2025 fell in the electricity, industrial processes and stationary energy sectors, driven by technology improvements, changes in production, and a decline in residential gas demand.
Emissions from the National Electricity Market (NEM) have fallen 1 per cent on the previous quarter in trend terms, reflecting a return to their long-term declining trend.
However, transport emissions continued their post-Covid rise as the use of road diesel and domestic aviation fuel reached record levels. The New Vehicle Efficiency Standard is projected to reduce transport emissions.
The preliminary data for the financial year ending 30 June shows even greater reductions, with emissions down to 436 million tonnes, which is 2.4 per cent or 10.6 million tonnes less than the previous financial year, to be 29 per cent below 2005 levels.
Minister for Climate Change and Energy Chris Bowen said the government’s climate and energy policies were working to drive down emissions across the economy.
“Our practical policies, including cheaper home batteries, our reliable renewables plan and the safeguard mechanism, are working to drive down emissions across the economy – and we are making good progress.
“We are on track to achieve our emissions reduction goals if we stay the course and continue to lift our efforts.
“With over [36,000] Cheaper Home Batteries installed with our support since 1 July, our policies are having a real impact on emissions and helping households with their energy bills. That’s more household battery capacity in 8 weeks than the Hornsdale Big Battery and Victorian Big Battery combined.”
The Quarterly Update of Australia’s National Greenhouse Gas Inventory March 2025 is available at: https://www.dcceew.gov.au/climate-change/publications/national-greenhouse-gas-inventory-quarterly-update-march-2025.
