In one year, Australia has reduced emissions equivalent to the entire domestic aviation sector - representing the single largest drop in gross emissions for a financial year outside of COVID-19, thanks to Albanese Labor Government policies, new data shows.
Record levels of reliable renewables are driving down Australia's climate pollution - with new data showing emissions fell by 2.2% in the year to June 2025, or a reduction of 9.9 million tonnes of carbon dioxide equivalent (CO2-e).
In the year to June 2025, 437.5 million tonnes of carbon dioxide equivalent emissions were recorded, which is 28.5% below 2005 levels - the base year for Australia's 2030 Paris Agreement target - and well on the way to reaching the 43% goal.
In a promising sign, the preliminary data for the year ending September 2025 shows even greater reductions, with emissions down 2.8% on the previous year, 12.4 million tonnes.
Renewable energy generation continues to drive emissions in the energy sector, while our reformed Safeguard Mechanism is driving investment in industrial decarbonisation and securing steady progress.
Electricity sector emissions decreased 3.3% over the year to June 2025 due to record renewables, with strong solar and wind generation growth.
In the national energy grid, for the June quarter 2025, emissions intensity was 0.55 tonnes CO2-e/Megawatt hour (MWh), a record low for any June quarter, with the electricity sector's emissions the lowest ever recorded for a June quarter.
Long term, electricity emissions have now decreased 25% since 2005 or down 30% since peak in 2009 as renewable energy reached 50% of the national grid in October.
Emissions in the year to June 2025 fell in the electricity, industrial processes and stationary energy sectors, driven by technology improvements, changes in production, and a decline in residential gas demand.
However, transport emissions continued their post-COVID rise, driven by an increase from the use of road diesel and domestic aviation fuel. In contrast, emissions from road transport petrol consumption remain 11.5% below pre-COVID levels. The New Vehicle Efficiency Standard is projected to reduce transport emissions.
Minister for Climate Change and Energy Chris Bowen said the government's climate and energy policies were working to drive down emissions across the economy.
"Our practical policies, including cheaper home batteries, our reliable renewables plan and the safeguard mechanism, are working to drive down emissions across the economy - and we are making good progress.
"We are on track to bring down energy bills and meet our climate targets if we stay the course and continue to lift our efforts.
"With over 135,000 Cheaper Home Batteries installed with our support since 1 July, our policies are having a real impact on emissions and helping households with their energy bills.
"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."
