Sydney, 1 November (Argus) — Australia is projected to import 100mn t of CO2 equivalent carbon credits by 2020 for the country to meet is binding target to reduce greenhouse gas (GHG) emissions by 5pc by 2020 from 2000 levels.
A Department of Climate Change report on Australia's emissions projections said that the country's GHG emissions will reach 637mn t of CO2e by 2020. This will require it to buy 100mn t of carbon credits from international sources to meet its target of 537mn t of CO2e, which is 5pc below the 2000 level of 565mn t of CO2e.
The report estimates that Australia's annual emissions will average 575mn t of CO2e during the Kyoto protocol period 2008-12, which means it will meet its Kyoto target of 108pc of the 1990 GHG level of 548mn t as the projected average is about 5pc above the 1990 level. Australia will have to import a total of 235mn t of carbon credits by 2030. The projections are the first official Australian government estimates since the introduction of a carbon tax of A$23/t on 1 July.
The carbon tax and other abatement policies will save 55mn t of GHG emissions by 2020, the report said, which means without existing policies and the reliance of international carbon credit imports Australia's GHG emissions will be 692mn t by 2020 or 26.3pc above 1990 levels.
The carbon tax will abate 48mn t of CO2e, the report estimates, with the remaining 7mn t coming from the carbon farming initiative, a policy to abate carbon through agricultural practices.
“Projected domestic emissions growth to 2020 is dominated by direct combustion and fugitive emissions associated with the production of energy resources, which is driven by expected strong demand for Australia's natural resources, particularly LNG,” the report said.
Electricity accounted for 34pc of total emissions last year, with the use of fuels in manufacturing, mining, construction and commercial sectors next at 17pc. Transport and agriculture accounted for 15pc and 14pc of total emissions respectively. There has been a 7pc decline in emissions from electricity since 2009, partly because of lower electricity demand, according to the report.
Send comments to firstname.lastname@example.org
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2012 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.