Argus Media Limited

06/27/2022 | News release | Distributed by Public on 06/27/2022 05:09

Australia's GHG emissions rise in 2021

Australia's greenhouse gas (GHG) emissions rose by 0.8pc in calendar 2021 from the previous year because of higher emissions in the transport and agriculture sectors, and more emissions associated with a rise in LNG output.

But these were partially offset by lower emissions from the electricity sector, according to the latest quarterly national greenhouse gas inventory December 2021 report from Australia's Department of Industry, Science, Energy and Resources (DISER).

Total GHG emissions for the year to December 2021 were estimated at 488mn t of CO2 equivalent (CO2e), and were 0.85pc above the 483.9mn t reached at the end of 2020, according to DISER's report (See table below for more details).

But the GHG emissions as of December 2021 were lower than the 501.5mn of CO2e accumulated in the 12 months up to 30 September 2021.

The report also provided a preliminary GHG emissions estimate of 489mn t of CO2e for the 12 months to 31 March 2022, which would be an increase of 2pc or 9.5mn t on the year.

There was a 4.2pc decline in emissions from the electricity sector in the year to December 2021, according to the report. This decline reflected a fall of 4.4pc in coal-fired power generation, a decrease of 23pc in gas generation and an increase of 18.1pc in electricity supply from renewable sources in the National Electricity Market (NEM), which covers the eastern states in Australia.

The Australian Electricity Market Operator (Aemo) noted that gas generation had declined to record lows during 2021 because of pricing fluctuations rendering gas generation subeconomic in most regions throughout most of 2021, said the report. But gas power generation has increased this year as several coal-fired plants have gone off line in the NEM.

Transport emissions increased in calendar 2021 by 4pc on the year, with gasoline consumption up by 2.4pc. Consumption of domestic jet fuel was higher in calendar 2021 by 23.6pc on the yearas Covid-19 restrictions on movement were lifted, said DISER.

Fugitive emissions from coal production were relatively steady at 28.7mn t of CO2e in 2021 from a year earlier, and fugitive emissions from gas and crude oil output were at 22.1mn t last year, up from 21.1mn t in calendar 2020. LNG production was higher by 1pc in the October-December quarter. CO2 injection at Chevron's 15.6mn t/yr Gorgon LNG project offshore Western Australia was less than 57pc of its nameplate capacity in the 2020-21 fiscal year to 30 June, but subsequently increased to 0.5mn t of CO2 over the October-December quarter, and to around 2mn t of CO2 for the year to December 2021.

The rise in fugitive emissions from the oil and gas sector last year was driven by growth in venting and flaring emissions caused by an overall increase of about 4.3pc in LNG production in 2021, the report said.

Around 26pc of Australia's GHG emissions last year were from methane emissions. The Labor-led Australian government, which was elected last month, has deepened its GHG emissions reduction target to 43pc by 2030 from 2005 levels, compared with the 26-28pc cut pledged by the previous conservative coalition government. The Labor government has also said it would consider joining the global methane pledge that seeks to cut 30pc of methane by 2030 from 2020 levels.

Australia still has work to do in order to achieve its 2030 targets. Emissions from the electricity sector peaked in 2009 and have since fallen by 24.2pc, according to the report. This reflects an acceleration in renewables deployment and gradual displacement of coal as a fuel source. But emissions still remained 22.8pc above 1990 levels in the year to December 2021, it said.

By Kevin Morrison

Australia's GHG emissions in 12 months to 31 December unit (mn t of CO2e)
Sector Year to Dec 2020 Year to Dec 2021 Change (%) ±
Electricity 167.5 160.4 -4.2
Stationary energy, excluding electricity 99.3 102.6 3.3
Transport 87.4 90.9 4
Fugitive emissions 49.9 50.8 1.8
Industrial processes 32.0 32.5 1.4
Agriculture 74.1 77.2 4.2
Waste 13 13 -0.1
Land use, land use change and forestry -39.3 -39.5 -0.4
Total 483.9 488 0.8
GHG emissions, excluding LULUCF 523.2 565.4 8.06
Source: DISER