Australia cuts emissions by ten million tonnes as 2025 progress improves

To achieve the 2035 target of a 62% to 70% reduction, the required pace will need to triple, the agency said.

Australia cut its emissions by about 10 million tonnes of CO₂-e in the year to June 2025, the largest annual drop since the first year of the pandemic, according to the Climate Change Authority (CCA).

The authority said the progress is meaningful but warned that the pace must accelerate to meet national targets.

To reach the 2030 goal of a 43% reduction from 2005 levels, annual emissions cuts will need to double, averaging around 18 million tonnes a year.

To achieve the 2035 target of a 62% to 70% reduction, the required pace will need to triple, rising to 20–25 million tonnes a year in the early 2030s.

Most of the recent progress came from the electricity and energy sectors, which delivered about half of the reductions. The CCA expects momentum to strengthen as renewables replace ageing coal capacity.

The authority pointed to favourable technology and policy drivers. Falling costs for solar PV and lithium batteries, along with measures such as the federal Capacity Investment Scheme and new energy-security settings, are supporting uptake across households, businesses, and utilities.

But it said wind development still needs faster planning approvals and stronger community benefit-sharing to keep projects moving.

A broader shift toward electrification—including heat pumps, induction appliances, EVs, and efficiency upgrades—can deliver further cuts beyond the power sector.

Australia recorded its hottest financial year on record in the period to June 2025, while 2024 was the hottest year globally, and the first to average more than 1.5°C above pre-industrial levels.