Soaring renewable energy output, reduced gas usage and more drivers choosing vehicles that cost less to operate have contributed to an 8.5 million tonne reduction in Australia’s emissions for the year ending September 2025.
This decrease, equal to a 1.9 per cent fall, is one of the fastest outside the COVID period, and stems from declines in emissions from electricity, transport, stationary energy and fugitive sources. It also marks the first drop in transport emissions since the pandemic.
The quarterly figures show a 27.4 per cent reduction compared with 2005 levels — the baseline for Australia’s Paris Agreement commitments — keeping the country on track for its 2030 climate goals. While updated data for earlier quarters has improved measurement accuracy, the overall downward emissions trend remains evident.
During this period, Australia achieved a number of important milestones that helped shape the emissions decline, including:
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Record highs of renewables in the grid delivering record lows for emissions per megawatt-hour,
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New EV sales more than tripling in three years to 13.1 per cent of new cars sold in 2025,
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And new carbon capture and storage projects cutting emissions in the oil and gas sector.
Minister for Climate Change and Energy Chris Bowen said the report showed Australia’s emissions are moving in the right direction.
“Our commonsense approach, which includes Cheaper Home Batteries, more cheaper, cleaner energy and more choice of cheaper to run cars, is working to drive down emissions across the economy.
“We are on track to meet our climate targets if we stay the course and continue to lift our efforts.
“But this progress can all be undone if the Coalition get their way to drive up bills and pollution by stopping the renewables roll out and sweating ageing, unreliable coal.
“The Coalition’s energy plan will cost Australians more.”