Rise of Renewables and EVs in Australia Is Trimming Emissions

image is BloombergMedia_TFRXU9KGZAIS00_29-05-2026_08-00-03_639156096000000000.jpg

Photographer: Gregory Plesse/AFP/Getty Images

Additions of renewable energy, lower use of fossil fuels and accelerating adoption of electric vehicles cut Australia’s annual greenhouse gas emissions by about 2%, helping to ease concerns the nation — one of the world’s top per-capita polluters — will miss climate targets.

Annual emissions in the year to December fell to 458.9 million tons of carbon dioxide equivalent, with reductions spurred by lower rates of pollution from electricity generation, curbs on natural gas venting and a cleaner transportation sector, Australia’s government said Friday in a quarterly report.

Record wind and large-scale solar generation, along with a surge in battery uptake, has helped make Australia’s main electricity grid the cleanest on record. Electricity emissions were about 26% lower than 2005 levels and nearly 4% below the previous year, according to the report.

The decline in annual emissions is “further proof that what’s better for the planet is better for your pocket — more of the cheapest form of new energy, more storage to back it up, and lower emissions as a result,” Minister for Climate Change and Energy Chris Bowen said in the statement.

Despite a record renewables buildout, Australia has previously warned it is at risk of missing a pledge to reduce emissions to between 62% and 70% of 2005 levels by 2035 without deeper cuts to pollution. To stay on track for net zero by 2050, the country needs to cut emissions by 71% by 2035, according to BloombergNEF.

Lower annual emissions across transport, electricity and stationary energy were partially offset by increased pollution from industrial processes, mainly due to higher steel production, the report said. 

©2026 Bloomberg L.P.

By Keira Wright

KEEPING THE ENERGY INDUSTRY CONNECTED

Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.

Back To Top