Australia Energy Climate Legislation

From July 1, many of the country’s 215 major polluting facilities – including fossil fuel operations, other mines, refineries, and smelters – will need to cut emissions intensity by 5% a year, either through absolute cuts or by buying carbon offsets. Together, these facilities are responsible for about 30% of emissions in Australia.

While individual companies can buy an unlimited number of offsets, total absolute emissions under the scheme cannot increase and are required to come down over time. New gas fields opened for export projects must offset all CO2 emissions, increasing costs for developers. 

Underpinning this deal, is an opportunity for U.S. companies to provide technical solutions to decarbonize the energy intensive industries in Australia. There are several potential solutions in demand. Five of the most frequently identified include: (1) electrification of heat; (2) the use of hydrogen as a fuel; (3) the use of biomass as fuel or feedstock; (4) carbon capture and storage; and (5) carbon capture and usage technologies. 

For more information on the Australian renewable energy market please contact the U.S. Commercial Service in Australia: office.australia@trade.gov.