Lyla Lindsey
Australia is a major player in the fossil fuel industry, both in terms of consumption and exports. The country has an abundance of fossil fuels, including coal, oil, and natural gas, which are primarily located in the Carnarvon and Gippsland basins. Australia's fossil fuel exports, particularly coal, contribute significantly to global carbon dioxide emissions, with the country ranking as the third-largest exporter of fossil fuels worldwide. While Australia's domestic emissions are already high, the majority of emissions from its fossil fuels occur overseas when they are combusted or used. This dynamic has important implications for the country's carbon footprint and its role in climate change.
| Characteristics | Values |
|---|---|
| Global rank in fossil fuel exports | 3rd |
| Global rank in liquid natural gas exports | 6th |
| Global rank in energy consumption | 20th |
| Global rank in per capita energy use | 15th |
| Percentage of world's coal resources | 6% |
| Percentage of world's natural gas resources | 2% |
| Percentage of world's oil reserves | 0.3% |
| Percentage of world's uranium resources | 46% |
| Percentage of world's energy production | 2.4% |
| Percentage of energy exports | 75% |
| Percentage of energy exports that are coal | Over 50% |
| Percentage of fossil fuel exports that are thermal coal | Expected to decline by 2035 |
| Percentage of fossil fuel exports that are LNG and metallurgical coal | Expected to stay the same by 2035 |
| Percentage of global carbon budget consumed by fossil fuel exports | 7.5% |
| Fossil fuel carbon footprint | 4.5% of global fossil carbon dioxide emissions |
| Fossil fuel carbon footprint compared to domestic footprint | 3 times larger |
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What You'll Learn
Australia's fossil fuel carbon footprint
Australia's primary energy consumption is dominated by coal, oil, and gas. Coal accounts for about 75% of the country's electricity generation, and Australia is the world's largest exporter of coal. Between 1961 and 2023, Australia's fossil fuel exports emitted around 30 billion tonnes of CO2 into the atmosphere, and the federal government's continued support for the fossil fuel industry is expected to increase this figure to 45 billion tonnes of CO2 emissions by 2035. This would consume about 7.5% of the remaining global carbon budget to limit warming to 1.5°C, and up to 9.1% when considering Australia's total carbon footprint.
Australia's fossil fuel exports are concentrated in LNG, metallurgical coal, and thermal coal, with Japan, China, South Korea, and India being the major importers. While Australia profits from these exports, the emissions that occur from the combustion and use of these fuels overseas are not attributed to Australia under the UNFCCC and Paris Agreement reporting frameworks. This discrepancy underscores the complexity of addressing global climate change and highlights the need for international cooperation and comprehensive emissions reporting.
To align with global efforts to limit warming and mitigate the impacts of climate change, Australia has committed to boosting renewable energy sources and reducing its reliance on fossil fuels. The "Future Made in Australia" plan allocates AUD 22.7 billion over ten years to promote renewable hydrogen, green metals, low-carbon liquid fuels, critical minerals processing, and clean energy manufacturing. Additionally, Australia has pledged to stop financing fossil fuel projects abroad within a year, improving its international fossil fuel financing rating from "Highly Insufficient" to "Insufficient." However, the country still faces challenges in transitioning away from fossil fuels, with policies enabling and promoting high fossil fuel exports, and a lack of holistic transport policies and sector-specific strategies for agriculture, buildings, and waste management.
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Australia's fossil fuel exports
Australia is one of the world's largest exporters of fossil fuels. It is the world's leading exporter of coal, the sixth-largest exporter of liquefied natural gas (LNG), and one of the largest exporters of uranium. Australia's fossil fuel exports are responsible for a significant amount of global carbon dioxide emissions, with 80% of those emissions occurring outside of Australia when the exported fuels are combusted or used.
Australia's domestic greenhouse gas emissions per capita are among the highest in the world, and the country is a significant consumer of energy, ranking fifteenth in per capita energy use. Despite this, Australia's economy is relatively diverse and less reliant on fossil fuels than other carbon exporters. The country's abundant and low-cost coal resources are used to generate three-quarters of its domestic electricity, contributing to some of the cheapest electricity globally.
Australia's crude oil resources are located primarily in the Carnarvon and Gippsland basins, boosted by substantial condensate and LPG resources in the Carnarvon, Browse, and Bonaparte basins off the northwest coast of Western Australia. The country also has significant oil shale resources near Gladstone, Queensland, and major uranium deposits in South Australia, the Northern Territory, and Western Australia.
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Australia's fossil fuel reserves
Australia has an abundance of both renewable and non-renewable energy sources, including fossil fuels. The country's fossil fuel reserves consist primarily of coal, oil, and natural gas, with some uranium resources also present.
Coal is Australia's most abundant fossil fuel resource, with the country holding around 6% of the world's coal reserves. Australia is the world's largest exporter of coal, and it accounts for more than half of the country's energy exports. The majority of Australia's coal resources are located in New South Wales, with other significant deposits found in Queensland and South Australia.
Oil is also found in Australia, with crude oil reserves located mostly in the Carnarvon and Gippsland basins off the northwest coast of Western Australia. Australia's oil reserves are relatively small compared to other countries, accounting for only about 0.3% of world oil reserves. However, these reserves are boosted by substantial condensate and LPG resources associated with the gas fields in the Carnarvon, Browse, and Bonaparte basins. Additionally, there are significant oil shale resources near Gladstone in Queensland, which could provide additional liquid fuels if developed.
Natural gas is another important fossil fuel resource for Australia, although its reserves are limited, accounting for about 2% of the world's natural gas. The country is ranked sixth in terms of liquefied natural gas (LNG) exports, and natural gas accounts for around 16% of the country's electricity generation.
Finally, Australia has significant uranium resources, with more than one-third of the world's known economic uranium deposits. These are located primarily in South Australia, the Northern Territory, and Western Australia. Uranium is a non-renewable energy source that can be used as an alternative to fossil fuels, although it is a controversial fuel source due to its potential risks and environmental impact.
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Australia's fossil fuel emissions
Australia is a significant producer and exporter of fossil fuels, including coal, natural gas, and crude oil. Coal is the most prominent fuel in the country's energy mix, accounting for around 40% of primary energy consumption and 75% of electricity generation. Australia is the world's largest exporter of coal, and it accounts for more than half of the country's energy exports. The country's coal resources are abundant and low-cost, making it a significant contributor to the global coal market.
Australia's fossil fuel exports, particularly coal and gas, have a substantial carbon footprint. It is estimated that Australia's fossil fuel exports contribute around 4.5% of global fossil carbon dioxide emissions, with 80% of those emissions coming from coal and gas exports. This means that Australia's global fossil fuel carbon footprint is about three times larger than its domestic footprint. The emissions occur when these exported fossil fuels are combusted and used overseas.
Australia's domestic greenhouse gas (GHG) emissions per capita are among the highest in the world. The country's energy sector directly contributes to these emissions, with fossil fuels being a key energy source for homes, transportation, and industry. Additionally, the process of extracting, processing, and distributing fossil fuels for export also results in significant domestic emissions.
To align with international climate goals, Australia needs to reduce its reliance on fossil fuels and transition to renewable energy sources. The country has committed to several measures, such as investing in large-scale renewable energy projects, improving vehicle efficiency, and setting renewable electricity targets. However, Australia's continued support for the fossil fuel industry, approval of new fossil fuel projects, and lack of federal-level plans for a coal and fossil gas phase-out undermine these efforts.
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Australia's fossil fuel consumption
Australia is a major consumer of fossil fuels, with its energy consumption rising by 2.0% in 2022–23 to 5,882 petajoules. Fossil fuels (coal, oil, and gas) accounted for 91% of Australia's primary energy mix in 2022–23, with oil making up the largest share at 39%, followed by coal and gas at 26% each. Australia's crude oil resources are located primarily in the Carnarvon and Gippsland basins, although they are considered small by world standards. The country also has substantial condensate and LPG resources associated with the major gas fields in the Carnarvon, Browse, and Bonaparte basins off the northwest coast of Western Australia.
Australia is the world's largest exporter of coal, which accounts for more than half of its energy exports. The country is also a significant producer of liquefied natural gas (LNG) and is ranked sixth in terms of LNG exports. In addition, Australia has an estimated 46% of the world's uranium resources and is one of the top exporters. Despite having a relatively small share of global oil reserves, estimated at 0.3%, Australia still exports a significant amount of oil.
The country's domestic GHG emissions per capita are among the highest in the world, and its global fossil fuel carbon footprint is significant. Australia's fossil fuel exports are responsible for a substantial amount of CO₂ emissions, with an estimated 1.15 billion tonnes of emissions attributed to its coal and gas exports in 2023. Additionally, 46 million tonnes of CO₂ were emitted domestically during the extraction, processing, and distribution of these fossil fuels for export.
While Australia has abundant renewable and non-renewable energy sources, its energy sector is heavily reliant on fossil fuels. Australia's low-cost coal resources are used to generate three-quarters of its domestic electricity, contributing to some of the cheapest electricity globally. The country's energy consumption is expected to continue increasing due to its growing economy and population. However, there is a growing recognition of the need to reduce emissions and transition to a low-carbon economy, with a focus on protecting and restoring northern forests to support this shift.
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Frequently asked questions
Fossil fuels are non-renewable energy sources that include oil, natural gas, and coal. They are formed over billions of years from the remains of ancient plants and animals.
Australia has an abundance of fossil fuel resources, including coal, oil, and natural gas. Australia is the world's largest exporter of coal and has about 6% of the world's coal resources. It also has significant oil reserves, mostly located in the Carnarvon and Gippsland basins, and is a major exporter of liquefied natural gas (LNG).
Australia is the world's third-largest exporter of fossil fuels, and its fossil fuel exports are responsible for a significant amount of global carbon dioxide (CO₂) emissions. Australia's coal and gas exports were responsible for 1.15 billion tonnes of CO₂ emissions in 2023, with an additional 46 million tonnes emitted domestically during the extraction, processing, and distribution of these fuels. The Australian government's policies enabling high fossil fuel exports have been criticized for undermining international efforts to limit global warming.
