Australia’s energy sector has hit major milestones in 2024, with record renewable energy generation and a further drop in total emissions, according to three newly released reports.
The Quarterly Carbon Market Report (QCMR) and 2023–24 National Greenhouse and Energy Reporting (NGER) data from the Clean Energy Regulator (CER), along with the National Greenhouse Gas Inventory Quarterly Update: September 2024 From the Federal Department of Climate Change, Energy, the Environment, and Water (DCCEEW), paint a picture of substantial progress in the nation’snation’s energy transition.
Record-breaking year for Renewables
In 2024, Australia generated 92,700GWh of renewable electricity—more than ever before—marking a 30% jump since 2021. By the last quarter of the year, renewables supplied a record 46% of the grid’s electricity.
Some standout daily records included:
- 75% renewables in the National Energy Market (NEM) on 6 November 2024
- 85% renewables in Western Australia on 17 November 2024
Renewable capacity also surged, with 7.5GW added across the year—up from 5.3GW in 2023. This included 4.3GW of large-scale projects and 3.2GW of rooftop solar, both new national records.
Investment in renewables is holding firm, with $9 billion worth of new projects reaching financial close in 2024. Once built, these projects are expected to add 4.3 GW of large-scale capacity and create over 10,000 jobs in construction and installation.
Emissions Continue to Decline
Australia’sAustralia’s total emissions dropped by 0.5% (2.2Mt CO2-e) in the year to September 2024, compared to the previous year. The country’s greenhouse gas emissions are now 29% below 2005 levels, the baseline for the 2030 Paris Agreement target. Projections suggest this figure will reach 42.6% below 2005 levels by 2030.
The Safeguard Mechanism, designed to cut emissions from Australia’sAustralia’s biggest polluters, is helping drive these reductions. The latest NGER data also shows emissions cuts in electricity generation, retail, and industries not covered by the Safeguard Mechanism.
Federal Climate Change and Energy Minister Chris Bowen said the government’s strategy is working.
“Australia must stay the course and continue to lift our efforts to increase these reductions to 2030 and beyond.”
Carbon Market Strengthens
The CER’s QCMR highlights the role of Australia’s carbon market and the reformed Safeguard Mechanism in helping businesses cut emissions.
Key figures from the report:
- 69.2Mt CO2-e of emissions were reduced in 2024, an 8% rise from 2023
- Expected to increase to 72Mt CO2-e in 2025
- A record 18.8 million Australian carbon credit units (ACCUs) were issued in 2024, with 53.9 million ACCUs now in the registry
David Parker, CER Chair, said the Safeguard Mechanism is working as intended, encouraging extensive facilities to cut emissions at the source progressively.
“Many safeguard entities have advanced decarbonisation plans, while others are in earlier stages or facing technological challenges,” he said.
Large-scale renewables, especially wind farms, accounted for 4.3GW of the 7.5GW renewable generation added in 2024.
The CER predicts that renewable penetration in the NEM could hit 44–46% in 2025, depending on wind and hydro output.
NGER Data: Emissions Down in Key Sectors
The 2023–24 NGER data shows an overall drop in scope one emission by 4Mt CO2-e compared to 2022–23, mainly driven by:
- Lower emissions from primary metal manufacturing, chemicals, and coal mining
- 303Mt of direct (scope one) greenhouse gas emissions
- 74Mt of indirect (scope two) greenhouse gas emissions
- 3,595PJ of net energy consumption
This year, corporations can voluntarily report market-based scope two emissions alongside the mandatory location-based data.
Quarterly Greenhouse Gas Inventory Update
The National Greenhouse Gas Inventory reports total emissions of 434.9Mt CO2-e in the year to September 2024, down 2.2Mt CO2-e (0.5%) from the previous year.
Sector-specific changes included:
Lower emissions from:
- Stationary energy (excluding electricity) – down 2.2Mt CO2-e (2.3%)
- Industrial processes and product use – down 2.1Mt CO2-e (6.4%)
- Agriculture – down 1.7Mt CO2-e (2.0%)
Higher emissions from:
- Transport – up 2.0Mt CO2-e (2.1%), driven by record domestic aviation and increased road transport diesel demand
- Electricity generation – up 2.3Mt CO2-e (1.5%), due to lower hydro output and increased fossil fuel generation
The reports confirm Australia’s renewable transition is accelerating while emissions continue trending downward.