Australia’s greenhouse gas emissions climbed by over 1% in 2021, representing a year-on-year increase of 4.1m tonnes in carbon dioxide equivalent, as reported by Reuters on June 27. According to the Australian government’s quarterly report, the country saw a 4% rise in transportation emissions, a 3.3% rise in manufacturing emissions, and a 4.2% rise in farm sector emissions, contributing to the overall emissions increase. Meanwhile, such an increase was partially offset by a 4.2% drop in electricity generation emissions due to the increased use of renewable energy such as wind and solar. The Australian government anticipates that emissions will continue to rise in 2Q22, resulting in a 2% increase from March 2021.
With the continuing rise of emissions in the short term, Australia needs extra investment and mobilization to achieve its 2050 carbon neutrality goal. As part of its response to the carbon neutrality pledge, Australia is issuing carbon credits to help reduce emissions. In 2021, the Australian Clean Energy Regulator granted 17m carbon credits, resulting in a 58m-tonne decrease in carbon emissions. Additionally, former prime minister Scott Morrison launched The Australian Way, a net-zero pathway that prioritizes investments in hydrogen energy, low-carbon transformation for the steel and aluminum sectors, carbon capture and storage (CCS) technologies, and other decarbonization strategies.