AustraliaÂ’s emissions fall as economy slows

Australia's Emissions Trading Scheme (ETS) aims to curb CO2 and greenhouse gas emissions via cap-and-trade, targeting a 5% cut by 2020, covering 75% of emissions amid coal reliance and temporary downturn-driven declines.

Australia's greenhouse gas emissions fell in the year to June, the first decline since an greenhouse inventory started in 1998, as the economy slowed due to the global financial crisis.

Australian National Greenhouse Accounts estimated the country emitted 544 million tonnes of carbon dioxide (CO2) equivalent in the year — a fall of 1.2 percent compared with the year earlier, following an emissions rise reported previously.

"This is the first time the annual emissions growth has been negative since the series commenced in September 1998," said the Australian government's greenhouse gas inventory report.

Australia's average annual emissions growth rate since 1998 has been 1.5 percent, said the report.

"The negative emission growth recorded in the four quarters to June 2009 is considered temporary and is mostly attributable to relatively low emissions in the March and June quarters in key sectors, mainly reflecting the economic slowdown," it said.

The report said emissions from the steel industry had fallen as a result of a temporary reduction in production capacity at the Port Kembla steelworks, emissions from agriculture and transport declined by 1.4 percent each, and low industrial production affected national demand for energy.

The government's weapon in the fight to reduce greenhouse gases permanently is a planned emissions trading scheme (ETS) to start in July 2011.

The ETS aims to curb emissions by 5 percent by 2020, or by up to 25 percent if there is a deal at UN world climate talks in Copenhagen in December, amid international pressure to cut emissions.

But the ETS laws are deadlocked in parliament, with the government in talks on possible amendments with the opposition, which wants more coal support along with funding for the electricity sector and agriculture exempt.

Australia's ETS will be the world's most comprehensive if passed, after an earlier parliament rejection raised uncertainties, covering 75 percent of national emissions from 1,000 of the biggest companies and be the second domestic trading platform outside of Europe.

Australia produces about 1.5 percent of global emissions. But it is the world's biggest coal exporter and one of the highest per-capita CO2 emitters due to reliance on coal for 80 percent of electricity.

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