Australia’s annual greenhouse gas (GHG) emissions declined by 2.1% (-9.7 MtCO2eq) in 2025 to almost 459 MtCO2e (Australian government press release, 29/05/2026.) This decline was driven by a 3.8% drop in electricity emissions (-5.7 MtCO2eq), a 5.2% fall in fugitive emissions (-2.5 MtCO2eq), a 1.6% drop in stationary energy (excluding electricity, including oil and gas production) (-1.5 MtCO2eq), and a 0.6% reduction in transport emissions (-0.6 MtCO2eq).
According to the government, the decrease was primarily spurred by the expansion of renewable and solar energy that replaced coal- and gas-fired power generation, battery storage systems, reduced gas flaring and underground coal mining, and rising electric vehicle adoption. However, the report noted that much of the gains were partially offset by increased emissions from industrial processes (+3%, +0.9 MtCO2eq), due to a higher production of steel. Overall, Australia’s total emissions are now 24.5% below September 2005 levels.
Australia aims to reach net-zero emissions by 2050, and in 2025 the country raised its carbon emission reduction target to 62%-70% by 2035, previously set at a 40% reduction by 2030 (from 2005 levels).