The Clean Energy Regulator (CER) has released the 2023–24 National Greenhouse and Energy Reporting (NGER) data, providing an overview of Australia’s greenhouse gas emissions and energy consumption trends. The data, published on 28 February 2025, highlights notable shifts in corporate emissions and energy use across sectors.
National Greenhouse Gas Emissions
For the 2023–24 reporting year, corporations reported:
303 million tonnes of direct (scope 1) emissions, a 1.3% decrease from the previous year.
74 million tonnes of indirect (scope 2) emissions, a 2.0% decrease, largely due to lower grid emissions intensities.
3,595 petajoules (PJ) of net energy consumption, reflecting a 1.7% decrease, continuing a five-year downward trend.
Key Trends in Greenhouse Gas Emissions
Industry Adaptation: The decline in greenhouse gas emissions suggests that major industries are gradually shifting towards cleaner processes, either through energy efficiency improvements, switching to lower-emission energy sources, or scaling back production due to economic or market-driven factors.
Grid Decarbonisation: The reduction in scope 2 emissions aligns with the broader decarbonisation of Australia's electricity grid. As more renewable energy sources are integrated, businesses relying on grid electricity are benefiting from lower emissions intensities.
Energy Efficiency Gains: The drop in net energy consumption reflects ongoing improvements in industrial efficiency and optimised energy use across sectors. This suggests businesses are investing in smarter energy management and potentially shifting to self-generation or alternative energy sources.
Macroeconomic Impacts: The decline in total energy consumption may also signal shifts in economic activity, with some energy-intensive industries reducing production levels in response to market conditions or global economic pressures.
Key Changes in Scope 1 Emissions
Three major industry sectors contributed significantly to the national reduction in direct emissions:
Primary Metal & Metal Product Manufacturing: Greenhouse gas emissions fell by 6.4% (1.6 million tonnes), accounting for 40% of the overall reduction, primarily due to reduced production and lower fuel combustion.
Chemicals & Petroleum/Coal Products: Emissions declined by 13.5% (1.1 million tonnes), contributing 28% to the national decrease, driven by lower production and emission abatement in nitric acid manufacturing.
Coal Mining: Despite a 2.5% increase in coal production, emissions dropped by 2.6% (0.9 million tonnes), largely due to lower fugitive emissions from underground coal mining.
Electricity Sector Greenhouse Gas Emissions
The electricity sector remains the largest source of greenhouse gas emissions, contributing 45.8% of national scope 1 emissions. With total energy generation of 218.5 terawatt-hours (TWh), emitting 138.9 million tonnes CO2-e, this marks a 0.2% decrease from 2022–23. However, emissions intensity continues to decline due to a shift towards renewables and improved grid efficiency.
Key Trends from the Data:
Coal Still Dominates: Black and brown coal power stations remain Australia’s primary electricity sources, with facilities such as Loy Yang and Eraring among the largest contributors to total generation and emissions.
Emissions Intensity Matters: Brown coal generators exhibit significantly higher emissions intensity compared to black coal and gas-fired power stations, reinforcing the push for cleaner alternatives.
Renewables Are Growing: Facilities like Snowy Hydro and Stockyard Wind Farm illustrate the expanding role of renewables in the electricity mix, reducing reliance on fossil fuels.
Corporate & Policy Shifts: More businesses are securing renewable energy contracts, and regulatory frameworks continue to incentivise the transition away from coal-based generation
Corporate Reporting Updates
For the first time, corporations could voluntarily report market-based scope 2 emissions, offering a clearer picture of greenhouse gas emissions from purchased energy. This change encourages:
Renewable Energy Adoption: Businesses can showcase emissions reductions when using certified clean energy.
Alignment with Net Zero Goals: Market-based reporting aligns emissions accounting with real-world energy procurement.
What This Means for the Energy Market
Ongoing Decarbonisation: The steady decline in emissions suggests that energy-intensive industries are adopting efficiency measures, fuel-switching strategies, and cleaner technologies. This trend aligns with national and global decarbonisation targets.
Electricity Market Transformation: While coal remains a dominant energy source, its emissions intensity continues to decline. Businesses should anticipate further shifts towards renewables, policy incentives, and potential carbon pricing changes.
Regulatory & Investor Focus: With increased corporate transparency on emissions, businesses with high carbon footprints may face growing investor scrutiny and regulatory pressure to demonstrate sustainability commitments.
Cost & Supply Chain Considerations: Reduced energy consumption suggests improved efficiency but also potential shifts in industrial production. Companies should assess energy procurement strategies to optimise cost and sustainability outcomes.
What This Means for You
For Large Energy Users: If your organisation is a significant energy consumer, reviewing your energy mix, efficiency initiatives, and emissions reporting practices can help mitigate risks and capitalise on sustainability incentives.
For Businesses with Net Zero Goals: Understanding emissions trends and market-based reporting can help align corporate sustainability strategies with industry benchmarks.
For Investors and Stakeholders: These insights provide a clearer view of corporate sustainability performance and potential investment risks or opportunities.
For Policymakers: The ongoing emissions reductions may inform future energy and climate policies, reinforcing the shift toward cleaner energy sources.
Looking Ahead
Looking Ahead
The latest NGER data underscores an ongoing shift towards lower emissions across key sectors, influenced by energy efficiency improvements, production changes, and emissions abatement initiatives. As Australia moves towards a lower-carbon economy, monitoring these trends will be critical for shaping future policies and corporate sustainability strategies.
However, grid stability remains a key challenge in the transition. As more renewables come online and fossil fuel generation declines, ensuring a reliable, resilient energy supply will require continued investment in storage, transmission infrastructure, and market reforms. Uncertainty around grid stability can also impact energy prices, with volatility driven by supply constraints, demand fluctuations, and policy shifts. At Utilizer, we'll help you keep a close eye on market trends and help you to consider how energy procurement strategies can help manage both risk and cost in an evolving energy landscape.
March 6, 2025 | 
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