What is Australia's pathway to limit global warming to 1.5°C?

Transport

Last update: 1 December 2022

Australia’s transport sector accounts for the largest share of the total final energy consumption, 41% as of 2019, and growing. Consequently, annual carbon emissions from the sector increased by around 1.6% per year during this time. As of 2019, oil accounts for 97% of transport’s energy use.

Australia's energy mix in the transport sector

petajoule per year

Scaling

Recent analysis has highlighted the inefficiency of Australian vehicles.1 Today, Australia is the only OECD country without mandatory fuel efficiency standards.2 A previous government assessment found that raising transport fuel efficiency standards was Australia’s most cost-effective emissions abatement opportunity.3,4 Estimates of marginal abatement costs for Australia have confirmed that setting such would see a net financial gain, rather than imposing a cost on the economy.5

The Labor government has announced a suite of new transport policy, including investment in electric vehicle charging infrastructure, hydrogen vehicle refuelling stations, and an on-road emissions and fuel usage testing programme. A tax exemption for electric cars has also been introduced.6 Fuel efficiency standards, however, remain conspicuously absent. The government has recently sought consultation on a National Electric Vehicle Strategy, including on the introduction of fuel efficiency standards.7

The 1.5°C compatible pathways assessed here give a range of carbon emissions reduction for the transport sector of 29-69% from 2019 levels by 2030. The large range is in part due to varying forecasts for future energy demand in the sector.

Australia's transport sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

1.5°C compatible transport sector benchmarks

Direct CO₂ emissions and shares of electricity, biofuels and hydrogen in the transport final energy demand from illustrative 1.5°C pathways for Australia

Indicator
2019
2030
2040
2050
Decarbonised transport sector by
Direct CO₂ emissions
MtCO₂/yr
99
30 to 71
11 to 44
5 to 18
2052 to 2057
Relative to reference year in %
-69 to -29%
-89 to -55%
-95 to -82%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
2
8 to 19
25 to 46
46 to 63
Share of biofuels
per cent
0
3 to 18
7 to 10
10 to 11
Share of hydrogen
per cent
0
2 to 16
6 to 55
14 to 55

All values are rounded. Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

Cookie settings

Just like other websites, we use cookies to improve and personalize your experience. We collect standard Internet log information and aggregated data to analyse our traffic. Our preference cookies allow us to adapt our content to our audience interests.