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May 2015

National Inventory by Economic Sector 2013

Australia’s National Greenhouse Accounts

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© Commonwealth of Australia, 2015.

National Inventory by Economic Sector 2013 is licensed by the Commonwealth of Australia for use under a Creative Commons By Attribution 3.0 Australia licence with the exception of the Coat of Arms of the Commonwealth of Australia, the logo of the agency responsible for publishing the report, content supplied by third parties, and any images depicting people. For licence conditions see: http://creativecommons.org/licenses/by/3.0/au/

This report should be attributed as ‘National Inventory by Economic Sector 2013, Commonwealth of Australia 2015’.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 3

Contents

Part A – Direct Emissions (Scope 1 emissions) 4

Emissions at a Glance 4

State and Territory Direct Emissions by Economic Sector 7

Part B – Indirect Emissions from the Generation of

Purchased Electricity (Scope 2 emissions) 10

Trends in Indirect Greenhouse Gas Emissions from the

Generation of Purchased Electricity (Scope 2 Emissions) 11

Part C – Combined Direct Emissions and Indirect

Emissions from the Generation of Purchased Electricity 14

Appendix 1 Notes 16

Related Publications and Resources 19

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Part A – Direct Emissions (Scope 1 emissions)

Emissions at a Glance

The National Inventory by Economic Sector provides information on national emissions, disaggregated by Australia- New Zealand Standard Industry Classifications (ANZSIC). It complements the quarterly updates to the National Greenhouse Gas Inventory and the State and Territory Greenhouse Gas Inventory, which provide estimates of emissions classified according to process-based emission categories.

In 2013, the major emission sources were electricity, gas and water and primary industries (agriculture, forestry, fishing and mining), accounting for 34.9% and 30.0% of direct emissions respectively.

Table 1: Australia’s Direct Greenhouse Gas Emissions by Economic Sector 2013(a)

Emissions (Mt CO2-e)

Share of total emissions (%)

All Sectors 549.4 100.0

Primary Industries 164.6 30.0

Agriculture, Forestry and Fishing 100.7 18.3

Mining 63.8 11.6

Manufacturing 70.7 12.9

Electricity, Gas and Water 191.8 34.9

Services, Construction and Transport 65.4 11.9

Residential 57.1 10.4

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Estimated using Kyoto Protocol classifications.

Trends in Direct Emissions

Emissions from the electricity, gas and water sector decreased between 2012 and 2013 (6.0% or 12.2 Mt CO2-e).

This was primarily due to a decrease in emissions from brown coal, and an increase in less emission intensive fuels for electricity generation. Emissions from the agriculture, forestry and fishing economic sector also experienced a decrease in 2013 (3.8% or 4.0 Mt CO2-e) largely due to reduced emissions from forest sector in response to reductions in the rate of harvesting. There was also a slight decline in the services, construction and transport sector (0.4% or 0.3 Mt CO2-e).

These decreases were partially offset by increases in emissions from the mining economic sector (2.9% or 1.8 Mt CO2-e) between 2012 and 2013. This was largely the result of increased emissions from fuel combustion.

There were also increases in manufacturing (1.2% or 0.8 Mt CO2-e), largely due to increased emissions from fuel combustion.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 5

Emissions have declined since 1990 in the agriculture, forestry and fishing (53.2% or 114.7 Mt CO2-e) sector.

The strong decline in this sector reflects the impacts of declining emissions from the clearing of forest cover and harvesting of forests, and increased removals from afforestation/reforestation activities since 1990.

Table 2: Detailed Direct Greenhouse Gas Emissions Estimates by Economic Classification: Australia 1990, 2012 and 2013

ANZSIC

code Industry Classification Emissions

(Mt CO2-e)

Change in emissions (%)

1990 2012 2013 1990 to 2013 2012 to

2013

Div A Agriculture, forestry and fishing 215.4 104.7 100.7 -53.2 -3.8

Div B Mining 40.4 62.0 63.8 57.9 2.9

06 Coal mining 23.1 33.8 33.7 45.8 -0.2

07 Oil and gas extraction 13.3 18.1 18.5 39.1 2.6

08-10 Metal ore and non-metallic

mineral mining and quarrying 4.0 10.2 11.6 190.4 13.7

Div C Manufacturing 69.4 69.8 70.7 1.8 1.2

11-12 Food, beverages, tobacco 5.2 4.8 5.1 -2.0 6.5

13 Textile, clothing, footwear and leather 0.6 0.4 0.4 -26.6 -2.0

14-16 Wood, paper and printing 2.1 2.1 2.2 7.0 7.3

17-19 Petroleum, coal and chemical 15.7 19.8 19.4 23.5 -2.1

20 Non-metallic mineral products 10.1 11.5 11.0 9.5 -4.3

21-22 Metal products 35.0 30.4 31.7 -9.3 4.4

24 Machinery and equipment 0.8 0.7 0.7 -9.8 -3.5

25 Other manufacturing 0.1 0.2 0.2 89.1 -9.2

Div D Electricity, gas and water 136.6 204.0 191.8 40.4 -6.0

Div E-H,

J-Q Commercial services and construction 7.4 8.9 9.0 21.1 0.3

Div I Transport and storage 12.9 27.6 27.9 115.6 1.1

Residential 40.4 56.5 57.1 41.1 1.1

Residential (non transport) 8.5 11.9 12.3 44.3 3.1

Residential (transport) 31.9 44.5 44.8 40.3 0.5

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au

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Figure 1: Direct Emissions by Economic Sectors 1990 to 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

Percentage Change in Direct Emissions by Economic Sectors 1990 to 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/

0 50 100 150 200 250

Emissions (Mt CO2-e)

Agriculture, Forestry and Fishing Mining

Manufacturing Electricity, Gas and Water

Services, Construction and Transport Residential

-70%

-50%

-30%

-10%

10%

30%

50%

70%

90%

Per cent change on 1989-90

Agriculture, Forestry and Fishing Electricity, Gas and Water

Manufacturing Mining

Residential Services, Construction and Transport

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 7

State and Territory Direct Emissions by Economic Sector

The profile of emissions by economic sector in each state and territory reflect the diverse circumstances of individual states (see Table 4). For example, in 2013:

• The largest quantity of net emissions from the agriculture, forestry and fishing sector was attributed to Queensland (53.3 Mt CO2-e);

• The largest quantity of direct emissions from the electricity, gas and water sector was attributed to Victoria (60.7 Mt CO2-e);

• The largest quantity of direct emissions from the manufacturing sector was attributed to New South Wales (19.0 Mt CO2-e); and

• The largest quantity of direct emissions from the mining sector was attributed to Queensland (19.0 Mt CO2-e).

Figure 2: Direct State and Territory Emissions by Economic Sector, 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

-20 0 20 40 60 80 100 120 140 160

ACT NSW NT QLD SA TAS VIC WA

Emissions (Mt CO2-e)

Residential Transport and Storage Commercial Services and Construction

Electricity, Gas and Water Manufacturing Mining

Agriculture, Forestry and Fishing

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Table 3: State and Territory Emissions by Economic Classification 1990

ANZSIC code Industry Classification NSW(a) VIC QLD WA

Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Total Net Emissions 163.3 104.4 162.8 60.5

Div A Agriculture, forestry and fishing 42.5 18.2 106.3 24.0

Div B Mining 20.4 4.3 4.4 5.3

Div C Manufacturing 26.8 10.7 11.9 10.0

Div D Electricity gas and water 47.5 46.4 23.3 10.8

Div E-H, J-Q Commercial services and construction 10.6 8.7 8.1 4.8

Div I Transport and storage 3.8 2.9 2.7 1.7

Residential 11.8 13.1 6.0 4.0

ANZSIC code Industry Classification SA TAS ACT

(partial inventory)(a) NT) Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Total Net Emissions 31.8 17.4 1.0 10.6

Div A Agriculture, forestry and fishing 7.0 11.7 -0.1 5.7

Div B Mining 5.1 0.2 0.0 0.6

Div C Manufacturing 5.3 2.4 0.1 2.3

Div D Electricity gas and water 7.1 0.7 0.0 0.9

Div E-H, J-Q Commercial services and construction 2.6 0.9 0.4 0.6

Div I Transport and storage 1.2 0.3 0.1 0.2

Residential 3.4 1.2 0.6 0.3

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) The NSW inventory includes ACT emissions from the stationary energy sector.

Notes: The difference between the national and the sum of the state and territory emissions reflects the inclusion of military transport and external territories in the national inventory and a small balancing item. Uncertainty estimates at a sectoral level are reported in the national inventory. While no quantitative estimates have been produced, the Department assesses that the uncertainties for emission estimates for the inventory, particularly the smaller states and territories, will be somewhat higher than for the national inventory.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 9

Table 4: State and Territory Emissions by Economic Classification 2013

ANZSIC

code Industry Classification NSW(a) VIC QLD WA

Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Total Net Emissions 141.8 119.7 159.2 83.6

Div A Agriculture, forestry and fishing 16.4 12.2 53.3 12.8

Div B Mining 18.4 3.1 19.9 16.8

Div C Manufacturing 19.0 11.0 15.6 15.8

Div D Electricity, gas and water 53.8 60.7 45.3 23.0

Div E-H, J-Q Commercial services and construction 10.6 8.7 8.1 4.8

Div I Transport and storage 7.4 5.8 6.9 4.7

Residential 16.2 18.3 10.3 5.8

ANZSIC

code Industry Classification SA TAS ACT

(partial inventory)(a) NT Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Total Net Emissions 27.4 1.7 1.4 13.8

Div A Agriculture, forestry and Fishing 3.3 -4.5 0.0 7.4

Div B Mining 3.8 0.2 0.0 1.6

Div C Manufacturing 5.3 2.5 0.0 1.5

Div D Electricity, gas and water 6.2 0.8 0.0 1.9

Div E-H,

J-Q Commercial services and construction 2.6 0.9 0.4 0.6

Div I Transport and storage 1.9 0.6 0.1 0.4

Residential 4.2 1.2 0.7 0.4

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) The NSW inventory includes ACT emissions from the stationary energy sector.

Notes: The difference between the national and the sum of the state and territory emissions reflects the inclusion of military transport and external territories in the national inventory and a small balancing item. Uncertainty estimates at a sectoral level are reported in the national inventory. While no quantitative estimates have been produced, the Department assesses that the uncertainties for emission estimates for the inventory, particularly the smaller states and territories, will be somewhat higher than for the national inventory.

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Part B – Indirect Emissions from the Generation of Purchased Electricity (Scope 2 emissions)

Emissions from the generation of electricity may be allocated to electricity consumers according to the share of electricity consumption of each economic sector. These estimates are known as “indirect” emissions from the generation of purchased electricity, or scope 2 emissions, and are defined in the National Greenhouse Accounts Factors (NGA Factors 2014), with reference to the World Resources Institute and World Business Council for Sustainable Development (WRI-WBCSD), The Greenhouse Gas Protocol: A corporate accounting and reporting standard (revised edition), 2004 (WRI/WBCSD 2004).

Indirect emissions estimate the impact of emissions generated off site (in this case in the electricity industry) as a result of economic activity in particular other sectors and reflects the interdependence of economic sectors across the Australian economy.

Table 5: Australia’s Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity (Scope 2 Emissions) by Economic Sector 1990, 2013(a)(b)(c)

Emissions (Mt CO2-e)

Change in emissions (per cent)

1990 2013 1990 – 2013

All Electricity Generation(a)(d) 129.5 187.4 44.6

Primary Industries 9.2 19.1 107.4

Agriculture, Forestry and Fishing 1.6 1.6 5.1

Mining 7.7 17.5 128.2

Manufacturing 42.2 48.0 13.6

Services, Construction and Transport 24.6 50.8 106.5

Residential 33.9 45.6 34.8

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014).

(b) The estimate of scope two emissions from electricity generation consumed within the electricity, gas and water sector includes own use of electricity by generators and is not necessarily purchased electricity. As these emissions do not necessarily meet the definition outlined at dot point (a), they have been omitted from sectoral rows of the table above but included in the total. Electricity generation emissions attributed to the electricity, gas and water sector were 19.6 Mt CO2-e in 1990 and 23.8 Mt CO2-e in 2013.

(c) Sectoral emission totals do not sum to all electricity generation emissions as the electricity, gas and water sector is not included in the above table as outlined at (b).

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 11

Trends in Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity (Scope 2 Emissions)

Emissions from electricity generation across all sectors have increased by 44.6% since 1990 (see Table 5).

The largest driver of increased indirect emissions from the generation of purchased electricity is the services, construction and transport sector which has recorded an increase of 26.2 Mt CO2-e.

Figure 3: Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity Trends by Economic Sector: 1990 to 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/

Note: Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014). Emissions from electricity generation consumed within the electricity, gas and water sector are included in the above graph for completeness although this electricity use includes own use of generators and does not necessarily meet the NGA Factors 2014 definition of scope 2 emissions.

Table 6: Indirect Emissions from the Generation of Purchased Electricity (Scope 2 Emissions), Australia, 1990, 2012 and 2013(a)(b)

ANZSIC code Industry Classification Emissions (Mt CO2-e)

1990 2012 2013

Div A Agriculture, forestry and fishing 1.6 1.9 1.6

Div B Mining 7.7 16.8 17.5

Div C Manufacturing 42.2 52.9 48.0

Div E-H, J-Q Commercial services and construction 23.0 48.2 47.4

Div I Transport and storage 1.6 3.4 3.4

Residential 33.9 48.9 45.6

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/

(a) Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014).

(b) The estimate of scope two emissions from electricity generation consumed within the electricity, gas and water sector includes own use of electricity by generators and is not necessarily purchased electricity. As these emissions do not necessarily meet the definition outlined at (a) they have been omitted from the table above. Electricity generation emissions attributed to the electricity, gas and water sector were approximately equal to 19.6 Mt CO2-e in 1990, 27.1 Mt CO2-e in 2012 and 23.8 Mt CO2-e in 2013.

0 50 100 150 200 250

Emissions (Mt CO2-e)

Residential

Services, Construction and Transport Electricity, Gas and Water

Manufacturing Mining

Agriculture, Forestry and Fishing

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Table 7: 1990 State and Territory Emissions from the Generation of Purchased Electricity (Scope 2 Emissions)(a)(b)

ANZSIC code Industry Classification NSW(c) VIC QLD WA

Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Div A Agriculture, forestry and fishing 0.5 0.5 0.3 0.2

Div B Mining 1.6 0.9 2.1 2.6

Div C Manufacturing 14.4 17.8 6.4 1.5

Div E-H, J-Q Commercial services and construction 7.0 7.4 4.1 2.5

Div I Transport and storage 0.7 0.4 0.6 0.0

Residential 13.3 10.2 5.5 2.3

ANZSIC code Industry Classification SA TAS NT

Mt CO2-e Mt CO2-e Mt CO2-e

Div A Agriculture, forestry and Fishing 0.1 0.0 0.0

Div B Mining 0.2 0.0 0.2

Div C Manufacturing 1.8 0.3 0.0

Div E-H, J-Q Commercial services and construction 1.5 0.1 0.4

Div I Transport and storage 0.0 0.0 0.2

Residential 2.4 0.1 0.0

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014).

(b) The estimate of scope two emissions from electricity generation consumed within the electricity, gas and water sector includes own use of electricity by generators and is not necessarily purchased electricity. As these emissions do not necessarily meet the definition outlined at (b) they have been omitted from the table above. Electricity generation emissions attributed to the electricity, gas and water sector were approximately equal to 6.3 Mt CO2-e in NSW, 6.7 Mt CO2-e in VIC, 3.9 Mt CO2-e in QLD, 1.4 Mt CO2-e in WA, 1.1 Mt CO2-e in SA, 0.05 Mt CO2-e in TAS and 0.1 Mt CO2-e in NT.

(c) The NSW inventory includes ACT emissions from the stationary energy sector.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 13

Table 8: 2013 State and Territory Emissions from the Generation of Purchased Electricity (Scope 2 Emissions)(a)(b)

ANZSIC code Industry Classification NSW(c) VIC QLD WA

Mt CO2-e Mt CO2-e Mt CO2-e Mt CO2-e

Div A Agriculture, forestry and fishing 0.5 0.5 0.3 0.2

Div B Mining 3.5 0.7 4.0 8.0

Div C Manufacturing 14.3 15.1 12.2 4.7

Div E-H, J-Q Commercial services and construction 15.0 16.1 9.7 3.5

Div I Transport and storage 1.0 0.9 1.0 0.5

Residential 18.2 11.5 9.2 3.7

ANZSIC code Industry Classification SA TAS NT

Mt CO2-e Mt CO2-e Mt CO2-e

Div A Agriculture, forestry and Fishing 0.1 0.0 0.0

Div B Mining 0.8 0.0 0.4

Div C Manufacturing 1.2 0.5 0.0

Div E-H, J-Q Commercial services and construction 1.9 0.1 0.9

Div I Transport and storage 0.0 0.0 0.0

Residential 2.5 0.2 0.3

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014).

(b) The estimate of scope two emissions from electricity generation consumed within the electricity, gas and water sector includes own use of electricity by generators and is not necessarily purchased electricity. As these emissions do not necessarily meet the definition outlined at (b) they have been omitted from the table above. Electricity generation emissions attributed to the electricity, gas and water sector were approximately equal to 6.2 Mt CO2-e in NSW, 8.4 Mt CO2-e in VIC, 5.8 Mt CO2-e in QLD, 2.1 Mt CO2-e in WA, 1.1 Mt CO2-e in SA, 0.2 Mt CO2-e in TAS and 0.2 Mt CO2-e in NT.

(c) The NSW inventory includes ACT emissions from the stationary energy sector.

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PART C – Combined Direct Emissions and Indirect Emissions from the Generation of Purchased Electricity

In this part of the report, the direct and scope 2 emissions have been combined to provide a broader understanding of the emissions resulting across the economy from activity within each economic sector.

The direct emissions associated with electricity generation have been removed to avoid double counting as they are already embodied within the indirect scope 2 emissions from purchased electricity. Caution should be taken when analysing combined emissions due to the different conceptual bases of the emission estimate components. Direct emissions are allocated to individual sectors at the point of emissions while indirect emissions from the generation of purchased electricity (scope 2 emissions) are not produced within the bounds of the industry to which they are attributed.

Figure 4: Australia’s Combined Direct and Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity (Scope 2 Emissions) by Major Economic Sector, 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

Note: Scope 2 emissions account for greenhouse gas emissions from the generation of purchased electricity. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the entity (NGA Factors 2014). Emissions from electricity generation consumed within the electricity, gas and water sector are not included in the figure above as this electricity use includes own use of generators and does not necessarily meet the NGA Factors 2014 definition of scope 2 emissions.

0 20 40 60 80 100 120

Residential Services, Construction and Transport Manufacturing Mining Agriculture, Forestry and Fishing

Emissions (Mt CO2-e)

Direct emissions Indirect emissions from the generation of purchased electricity (scope 2 emissions)

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 15

Figure 5: Combined Direct and Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity (Scope 2 Emissions) by Major Economic Sectors, 1990 to 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Direct emissions and indirect greenhouse gas emissions from the generation of purchased electricity (scope 2 emissions) have been combined in the figure above to provide a broader understanding of the emissions resulting across the economy from activity within each economic sector. Caution should be taken when analysing combined emissions due to the different conceptual bases of the emission estimates.

Figure 6: Percentage Change in Combined Direct and Indirect Greenhouse Gas Emissions from the Generation of Purchased Electricity (Scope 2 Emissions) by Major Economic Sectors, 1990 to 2013

Source: Australian Greenhouse Emissions Information System: http://ageis.climatechange.gov.au/.

(a) Direct emissions and indirect greenhouse gas emissions from the generation of purchased electricity (scope 2 emissions) have been combined in the figure above to provide a broader understanding of the emissions resulting across the economy from activity within each economic sector. Caution should be taken when analysing combined emissions due to the different conceptual bases of the emission estimates.

0 50 100 150 200 250

Emissions (Mt CO2-e)

Agriculture, Forestry and Fishing Mining

Manufacturing

Services, Construction and Transport Residential

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Per cent change on 1989-90

Agriculture, Forestry and Fishing Mining

Manufacturing

Services, Construction and Transport Residential

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Appendix 1 – Notes

Australian National Greenhouse Accounts

The 2013 Australian National Greenhouse Accounts include:

• The Quarterly Update of Australia’s National Greenhouse Gas Inventory – September Quarter 2014;

• State and Territory Greenhouse Gas Inventories 2013;

• the National Inventory by Economic Sector 2013; and

• the National Inventory Report 2013, prepared under the reporting provisions applicable to the United Nations Framework Convention on Climate Change and the Kyoto Protocol.

Detailed emission estimates for each of these accounts are available online on the Australian Greenhouse Emissions Information System (AGEIS).

The emission estimates for these inventories are prepared in accordance with international guidelines and are subject to annual review by international experts. The methodologies for the estimation of emissions are documented and available on the Department’s website.

National Inventory by Economic Sector Accounts

The National Inventory by Economic Sector provides information on emissions, disaggregated by Australia-New Zealand Standard Industry Classifications (ANZSIC). The economic categories used in this publication align with the ANZSIC 2006 classification. The ABS website has more details on the ANZSIC framework (www.abs.gov.au). It complements the National Greenhouse Gas Inventory, based on Intergovernmental Panel on Climate Change (IPCC) classifications, which provides estimates

Emissions estimates presented in this document have been mapped from the National Greenhouse Gas Inventory using the Australian Greenhouse Emissions Information System (AGEIS). Emissions for any particular ANZSIC classification will include estimates from all relevant IPCC sectors. For example, the Division A Agriculture, Forestry and Fishing sector includes emissions from the IPCC Energy sector (fuel combustion from Division A industries); the IPCC Agriculture sector (processes such as enteric fermentation); and land use, land use change and forestry activities (deforestation, afforestation and reforestation, forest management, cropland management and grazing land management).

Direct emissions are allocated to individual sectors at the point of emissions. For example, direct emissions from the combustion of fuel for electricity generation are accounted for at the power station where the electricity is produced.

Scope 2 emissions are indirect greenhouse gas emissions produced off site in the generation of electricity, subsequently purchased and consumed within a sector and attributed to the sector consuming the electricity.

Kyoto Classifications

The national inventory comprises emissions from the IPCC sectors energy, industrial processes and product use, agriculture, waste, and from the deforestation activity from the LULUCF sector. Within the energy sector, there are stationary energy, transport and fugitive emissions (mainly from the extraction fuels) sources.

Australia also reports data for the mandatory Article 3.3 activities afforestation and reforestation, and the mandatory Article 3.4 activity forest management. For the second commitment period, Australia intends to also report emissions from the voluntary Article 3.4 activities cropland management and grazing land management and revegetation.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 17

• Stationary energy is mainly greenhouse gas emissions from the production of electricity and other direct combustion of fossil fuels in industries such as manufacturing and construction.

• Transport comprises greenhouse gas emissions from air, road, rail and shipping transportation.

• Fugitive emissions from fuel extraction,

production/processing and transport comprises the greenhouse gas emissions from the extraction and distribution of coal, oil and natural gas.

• Industrial processes and product use comprises the direct greenhouse gas emissions from the chemical and or physical transformation of materials and the consumption of synthetic greenhouse gases.

• Agriculture comprises the emissions of methane and nitrous oxide only (that is, non-carbon dioxide gases) from livestock, crops, agricultural and forest soils, and agricultural burning including the prescribed burning of savannas.

• Waste comprises the greenhouse gas emissions from the disposal of solid waste to land, the treatment of domestic and industrial wastewater, the incineration of municipal and clinical waste and the biological treatment of solid waste.

• Afforestation and reforestation comprises emissions and removals from forests established since 1990.

Forests may be established through planting events or revegetation from natural seed sources on lands regulated for the protection of forests.

• Deforestation comprises emissions and removals from the direct human-induced removal of forest and replacement with pasture, crops or other uses on land that was forest since 1 January 1990.

• Forest management comprises emissions and removals in forests managed under a system of practices designed to support commercial timber production such as harvest or silvicultural practices or practices that are designed to implement specific sink enhancement activities.

• Cropland management includes all land that is used for continuous cropping, lands managed as crop pasture rotation, and lands converted to cropland from grassland. Forest land converted to cropland prior to 1990 is also included under cropland management. Perennial crops, including orchards and vineyards, are included under cropland management, including orchards established on land that was clear of forest on 31 December, 1989.

• Grazing land management includes grasslands, forests in northern Australia monitored for savanna burning, and forests established by regeneration from natural seed sources on lands not regulated for the protection of forests (and which are not classified as afforestation and reforestation).

Australian Greenhouse Emissions Information System

The Australian Greenhouse Emissions Information System (AGEIS) provides on-line public access to emission estimates, background supporting data and time-series analyses that support the National Greenhouse Accounts. The dynamic interface allows users to select emissions data of interest and download the results in a format which allows for further analysis of the data on their own desktop. The AGEIS can be accessed online: http://ageis.climatechange.gov.au/.

International Guidelines and Review

The Australia National Greenhouse Accounts have been prepared in accordance with the Intergovernmental Panel on Climate Change (IPCC) 2006 Guidelines for National Greenhouse Gas Inventories and 2013 Revised Supplementary Methods and Good Practice Guidance Arising from the Kyoto Protocol. The national inventory undergoes annual independent international review.

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Greenhouse Gases

Consistent with the requirements of the Kyoto Protocol, the National Inventory by Economic Sector cover sources of greenhouse gas emissions and removals by sinks resulting from human (anthropogenic) activities for the major greenhouse gases – carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).

Global Warming Potentials (GWPs) have been used for each of the major greenhouse gases to convert them to carbon dioxide equivalents (CO2-e). As greenhouse gases vary in their radiative activity and in their atmospheric residence time, converting emissions into CO2-e allows the integrated effect of emissions of the various gases to be compared.

The GWPs used in this report were the 100-year GWPs contained in the 2007 IPCC Fourth Assessment Report, as agreed for use under UNFCCC reporting.

External Territories

The geographical coverage of the National Inventory by Economic Sector also includes emissions from Norfolk Island, Christmas Island, Cocos (Keeling) Islands, and Heard and McDonald Islands. Australia’s Antarctic Program operations in the Antarctic are also covered.

The following external territories are covered but are included in the respective state statistical territories by the Australian Bureau of Statistics: Coral Sea Islands (Queensland), and Ashmore and Cartier Islands (Northern Territory).

Uncertainty Analysis

Uncertainty is inherent within any kind of estimation.

Uncertainty assessments at a sectoral level are reported in the National Inventory Report. Overall, at the national inventory level including LULUCF, the uncertainty of the emissions estimates level has been assessed at ±4.8%. While no quantitative estimates have been produced, the Department assesses that the uncertainties for emission estimates for these inventories, particularly the smaller States and Territories, will be somewhat higher than for the national inventory.

Ongoing Improvements of estimates

Due to refinements to the emissions estimation methodologies, which have been applied to all years for which emissions have been estimated, the estimates presented in this document supersede all previously published estimates for the National Inventory by Economic Sector and caution should be exercised before comparing directly with the estimates of previous publications.

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AUSTRALIAN NATIONAL GREENHOUSE ACCOUNTS National Inventory by Economic Sector, 2012-13 / 19

Related Publications and Resources

Australia’s National Greenhouse Accounts

The following Department of the Environment publications are all available on the departmental website.

National Inventory Report 2013

The three volumes comprising Australia’s National Inventory Report 2013 were submitted under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol in May 2015. The National Inventory Report 2013 contains national greenhouse gas emission estimates for the period 1990-2013 compiled under the rules for reporting applicable to the UNFCCC.

Volume 1: Includes Australia’s data for energy (stationary energy, transport and fugitive emissions), industrial processes and agriculture.

Volume 2: Australia’s data for the Land Use, Land Use Change and Forestry (LULUCF) and waste sectors, recalculations and improvements.

Volume 3: Australia’s data for Kyoto Protocol LULUCF, Kyoto Protocol accounting requirements, glossary and references.

State and Territory Greenhouse Gas Inventories 2013

This document provides an overview of the latest available estimates of annual greenhouse gas emissions for Australia’s States and Territories. It complements the National Inventory Report 2013 and the National Inventory by Economic Sector 2013.

Quarterly Update of Australia’s National Greenhouse Gas Inventory: September 2014

This report provides estimates of Australia’s national inventory up to the September quarter of 2014 and includes emission sources listed under Annex A of the Kyoto Protocol – energy, industrial processes, agriculture and waste sectors. This report also includes quarterly estimates for Kyoto Protocol Article 3.3 and Article 3.4 activities (deforestation, afforestation and reforestation, forest management, cropland management and grazing land management).

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Australia’s Abatement Task and 2014-15 Emissions Projections

This report outlines the amount of emissions reductions required to achieve Australia’s 2020 target of 5 per cent below 2000 levels:

http://www.environment.gov.au/resource/australias-abatement-task-and-2013-emissions-projections

Australian Greenhouse Emissions Information System (AGEIS)

The AGEIS centralises the Department’s emissions estimation, emissions data management and reporting systems. AGEIS is being used to compile national and State and Territory inventories. The interactive web interface provides enhanced accessibility and transparency to Australia’s greenhouse emissions data.

http://ageis.climatechange.gov.au/

Full Carbon Accounting Model

The Full Carbon Accounting Model (FullCAM) is the calculation engine which supports the estimation of carbon stock change on forest and agricultural systems. FullCAM can be downloaded from the Department’s webpage:

http://www.environment.gov.au/climate-change/greenhouse-gas-measurement/land-sector.

Australia’s Sixth National Communication on Climate Change

This is the latest in a series of reports to the UNFCCC — which are submitted every four years.

http://unfccc.int/national_reports/annex_i_natcom/submitted_natcom/items/7742.php

What the rest of the world is doing

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environment.gov.au

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