Are ongoing carbon reduction efforts enough to meet Australian targets?

May 01, 2022 12:23 AM AEST | By Arpit Verma
Follow us on Google News:


  • Australia has successfully beaten Kyoto targets but achieving the 2030 target may be somewhat challenging.
  • Currently, the emission reduction fund (ERF) is the centrepiece of the Australian Government's policies rather than the carbon pricing mechanism.
  • The Australian government has pledged AU$67 million of funding to help the development of two carbon capture and storage (CCS) hubs.

Despite climate change posing one of the greatest challenges, Australian major political parties are silent on climate actions. On 20 April 2022, during the first leaders’ debate for the election campaign, Prime Minister Scott Morrison and opposition leader Anthony Albanese didn't mention climate change even for a single time. 

What does this suggest? Either the nation is on track to attain its targets, or it is lagging, and these leaders don't want to discuss this sensitive issue prior to elections. To understand this, first, we must know what Australia’s climate targets are.      

Also read: Nations conclude climate agreement after last-minute compromise on fossil fuels 

Australia’s targets to reduce greenhouse gas emission

Under international climate agreements, the country has two targets to reduce its greenhouse gas (GHG) emissions. Under the Kyoto Protocol, the country had pledged to reduce GHG emissions by 5% below 2000 by the year 2020 and, under the Paris Agreement, Australia aims to curb its emissions 26%-28% below 2005 levels by 2030. 

While the nation has successfully beaten Kyoto targets, achieving the 2030 target seems somewhat challenging. 

Data Source: Parliament of Australia 

More than half of the country's GHG emissions come from the generation of electricity and direct fuel combustion. Apart from this, the transport and agriculture sectors also contribute nearly 17% and 13% of the total GHG emissions, respectively. 

Currently, the emission reduction fund (ERF) is central to the Australian Government’s policies rather than the carbon pricing mechanism, which was introduced in 2012 by the incumbent Australian Labor Party Government. 

Must Read: How can carbon sequestration assist the world to attain a carbon-neutral future 

Efforts by the Australian government

ERF allows the Australian government to purchase Australian Carbon Credit Units through an auction process administered by the Clean Energy Regulator. 

So far, a range of projects has been funded under the ERF to reduce emissions. 


Curbing carbon emissions

Source: © Nicoelnino |

In addition to ERF, the Australian government has also announced several measures to curb hydrofluorocarbons (HFCs) emissions by 85% by 2036. Furthermore, the government is also exploring options to enhance the efficiency of the country’s vehicle fleet, providing subsidies to the buyers of electric vehicles and funding hydrogen generation projects. 

Recently, the Australian government has pledged AU$67 million of funding towards the development of two carbon capture and storage (CCS) hubs – one led by Mitsui E&P and the other by Woodside.  

Must Watch: Is a carbon-neutral life feasible? | Expert Talk with CarbonClick's Dave Rouse 

Private players including Santos (ASX:STO), Glencore, and ExxonMobil are also working in the same direction with a similar objective to reduce carbon footprints. 

Bottom Line

Carbon emissions are adversely impacting our climate and businesses can play a significant role in curbing these emissions. With the world racing to curb greenhouse gas (GHG) emissions, countries across the globe have set their milestones to attain carbon neutrality in coming decades. Carbon capture and storage is one such technology that can be instrumental in helping the world reduce carbon concentration in the atmosphere. 


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK