Abatement Potential in Australia's Energy Sector

Abatement Possibility

The reduction of greenhouse gas emissions in Australia will have implications for every economic sector in the State (regardless of the choice of policy mechanism). A clear conclusion, which can be drawn from the modeling of abatement opportunities in this project, is that for Australia to deliver a substantial reduction in emissions, effective abatement initiatives will be required across all economic sectors.

The Australian economy is increasingly diverse and contains a number of key economic sectors, which have been the focus of a variety of support and policy development activities. For the purposes of this discussion of the implications of greenhouse gas abatement on a sectoral basis, there is four key Australian economic sectors for examination have been identified: Transport, Energy, Agriculture and Forestry, Waste.

The energy sector

While abatement potential across Australia’s energy sector is large; some of this potential comes at a net economic cost while some yields economic returns.

The abatement initiatives are a combination of:

Demand management initiatives that decrease the amount of energy needed.

Demand side efficiencies that also decrease the amount of energy needed.

Supply side efficiencies that decrease the CO2-e emissions produced per unit of energy.

Supply Side changes in the fuel mix that decrease the CO2-e emissions produced per unit of energy.

Stationary energy is will continue to be. It is the main contributor to emissions in Australia. Improvements in thermal efficiency at large generation plants, fuel efficiency gains in non electricity fuel combustion and significant increases in renewable generation will be far outweighed by the impact of economic growth on energy consumption. ...

... middle of paper ...

...sions are driven broadly by two factors: livestock numbers and crop-related emissions. Livestock numbers are not expected to increase over the period. The domestic livestock-farming sector is generally considered to be operating at capacity, with imports from interstate meeting new demand. With negligible new livestock numbers, and continuing efficiencies in livestock management, emissions from livestock are expected to decline. Growth in the demand for grains exports, however, will drive an increase in emissions for the sector.

Forestry: The land use, land use change and forestry sector is distinct in Australia because it generates a net carbon sink. Small growth in harvestable plantations – with no likely change in deforestation or the conversion of lands to cropland – will mean the sector will ‘absorb’ more emissions than it will produce over the forecast period.