Australian Bureau of Statistics
4604.0 - Energy and greenhouse gas emissions accounts, Australia, 1992-93 to 1997-98
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 16/05/2001
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Primary energy products include raw materials such as: non-renewable fossil fuels such as coal, oil and gas; uranium concentrates; as well as renewable fuels such as solar, wood, bagasse etc.
Secondary energy products or sources are those that have been derived from a primary energy source. That is, primary energy sources are enhanced or changed in state to create a secondary product before consumption. Secondary energy products include thermal electricity, which is derived mainly from coal, and refined petroleum products (e.g. automotive petrol)-derived from crude oil. It is worth noting that, although hydro-electricity can be considered a primary energy source, it is treated as secondary in the supply and use tables for ease of comparison with thermal electricity generation.
This publication presents information from a number of different sources, relating to a number of different years. Due to the varying classification systems, definitional differences, presentational styles and various states of revision of data sources, it is not always possible to reconcile the data from the different sources. It should be noted that some differences may also occur between the published National Greenhouse Gas Inventory (NGGI) (AGO 2000) and data presented here. The NGGI is prepared according to guidelines set out by the UN Framework Convention on Climate Change and emissions are presented by source category rather than by end users. The National Greenhouse Gas Inventory is the official source of greenhouse gas statistics for Australia.
Australia, as a nation, is highly dependent on energy resources. In addition to being one of the world's largest exporters of coal, Australia's per capita energy consumption is one of the highest in the world, with a heavy reliance on fossil fuels. Australia has a higher dependence on fossil fuels for electricity production (90%) than most other countries or regions in the world.
Australia's trends in energy production and use are a reflection of the abundance of the nation's fossil fuel and mineral energy resources. In 1997-98, Australia's coal, oil, gas and uranium reserves totalled over 2 million PJ, worth around $76 billion. More than 65% of primary energy supply was exported in 1997-98 (mainly coal and uranium concentrates), contributing over $13 b, or around 15%, to total exports.
Crude oil is the exception, with imports outweighing exports of this product. Although exports of this material have increased by around 46% since 1992-93, they represented only 6% of Australia's exports of primary energy in 1997-98.
Australia's wealth of fossil fuel resources, especially coal, combined with our high rates of electricity consumption and transport use, poses specific problems for Australia in achieving substantial reductions in greenhouse gas emissions. The combustion of fossil fuels is the major contributor to Australia's greenhouse gas emissions (about 73% of net emissions, excluding land clearing, in 1997-98).
In particular, turning coal into electricity involves sizeable losses of energy in the transformation process. For every one unit of electricity generated, about three units of coal must be burnt, a relatively greenhouse expensive process. Hence, electricity generation accounts for about one half of Australia's energy-related greenhouse gas emissions. Promoting greater use of renewable energy is one aim of Australian governments in addressing greenhouse gas reductions (in 1997-98, renewable energy sources provided under 6% of Australia's domestic energy requirements). Recent government initiatives have set a mandatory target for electricity retailers to source an additional two per cent of their electricity from renewable energy sources by 2010. Introduction of new power plant energy efficiency standards over the next few years is another measure being taken to reduce emissions, as are strategies aimed at increasing the use of alternative fuels such as compressed natural gas (CNG) and liquefied petroleum gas (LPG).
Energy use by transport is a major contributor to Australia's energy-related greenhouse gas emissions. Total transport activity, including industrial and domestic use of motor vehicles, contributes about one quarter of these emissions.
Overall, about 23% of Australia's energy-related greenhouse gas emissions are generated in the production of exports (valued at over $83 b in 1994-95). Households are ultimately responsible for around 56% of total (energy-related) emissions, mainly through electricity consumption and motor vehicle use. Promoting energy efficiency in industry and in the household sector is another measure being undertaken by governments to reduce Australia's greenhouse gases.
AN OVERVIEW OF ENERGY SUPPLY AND USE
Diagram 1 presents an overview of net energy supply and use in Australia for 1997-98. Total net energy accounts for the transformation process of a primary energy product to a secondary energy product (and related conversion losses). In this way, estimates for total net energy avoids double-counting the amount of converted primary energy.
Australia's total energy supply is comprised of Australian production of energy, plus imports of energy products, with imports contributing only a small amount to Australia's total energy supply (less than 10%).
Most of Australia's total energy supply is exported (more than 66% in 1997-98), the bulk of which is unrefined materials in the form of coal and uranium concentrates. These make up around 85% of total energy exports, with almost 98% in the form of primary energy (not shown).
Of the 4,824 PJ available for domestic consumption in 1997-98, about 30% of this is lost in the conversion process of a primary energy product to a derived product (1,442 PJ).
The bulk of this loss is due to the generation of electricity, which consumed 40% of domestically available energy in 1997-98 (1,950 PJ). More than 63% of this amount is lost in the conversion of the primary fuel (mainly coal) to electricity, resulting in energy for final domestic end-use totalling 3,382 PJ.
Of this available energy, the manufacturing industry used about 35%, or 1,191 PJ. (Many of the products of industry are ultimately consumed by households.) Direct household consumption of energy amounted to 27%, or 918 PJ, with automotive petrol and electricity the major forms of energy used.
The transport industry-which excludes road transport activity of households and other industries-used a further 13%, with mining, construction and all other service industries combined consuming the remaining 25%. Overwhelmingly, domestic fuel use is dominated by the fossil fuels coal, oil and gas, and their derivatives. Renewable energy, comprising bagasse, firewood, solar energy and hydro-electricity, accounted for about 6% of the domestically available energy.
Chapter 2 provides a detailed look at gross energy consumption, by fuel type, for the years 1992-93 to 1997-98. These tables show the gross consumption of fuels by all industries and households, including the energy transformation industries (e.g. electricity supply). These figures are of particular interest in the consideration of the direct generation of greenhouse gas emissions.
1. NET ENERGY SUPPLY AND USE, AUSTRALIA-1997-98
ENERGY USED INDIRECTLY BY FINAL CONSUMPTION
Diagram 1 presented information for 1997-98 on the overall supply and use of energy in Australia, the bulk of which is exported as raw material. The amount of energy combusted domestically is of particular interest in relation to Australia's attempts to reduce the amount of greenhouse gases emitted by energy-consuming activities, given Australia's heavy reliance on fossil fuel use.
The following analysis is based on input-output modelling for the 1994-95 year, although the derived proportions are expected to remain fairly stable from year to year. The amount of energy combusted domestically totalled 4,419 PJ in 1994-95. Graph 2 looks at the amount of energy used directly and indirectly by the final users of the goods and services. These final users may not necessarily use energy directly, but they are considered to be using energy indirectly by the consumption of products-i.e. inducing the consumption of energy.
Over half of the total energy combusted domestically (53%) was used either directly or indirectly by households through consumption of products. Goods and services produced for export made up a further 29%; gross capital formation induced 11% (e.g. energy embodied in buildings, road, rail, pipeline infrastructure etc.); and government final consumption (mainly government administration and the provision of services such as education, health and community services) directly and indirectly used the remaining 7% of domestically combusted energy.
2. ENERGY COMBUSTED IN AUSTRALIA, By Final Use-1994-95
(a) Gross fixed capital formation.
Note: Figures are modelled based on 1994-95 data. See chapter 4 for more details.
Energy used and induced by households and exports
Energy combusted domestically for household final consumption totalled 2,321 PJ and energy used for the production of goods and services for export totalled 1,286 PJ in 1994-95 (includes energy lost in the conversion process).
Petroleum products (mainly motor vehicle fuels) contributed the most (577 PJ or 25%) to energy combusted domestically for household consumption, followed by household electricity (487 PJ) (graph 3). Household consumption of wholesale, retail and repairs also induced significant amounts of energy to be consumed (215 PJ).
For export, the biggest contributor was basic non-ferrous metals and products, due to the large amount of electricity used in their production (428 PJ). About 64% of the energy used in the consumption of electricity to produce these products for export is due to conversion losses.
Chapter 4 contains more detailed analyses of energy demand induced by the consumption of different product types.
3. ENERGY COMBUSTED IN AUSTRALIA, By Product Types(a)-1994-95
(a) Ten product types that use the largest amount of energy for household final consumption or exports.
(b) Produced domestically from crude oil. Includes conversion loss from crude oil to derived product.
(c) Includes conversion loss from primary fuel to derived product. Excludes hydro-electricity.
AUSTRALIA AND THE REST OF THE WORLD
Table 4 shows key energy indicators for major world regions and Australia for 1997, based on statistics from the International Energy Agency (IEA). Terms and definitions are those used by the IEA and are defined in the tables where appropriate. Australia's contribution to world total primary energy supply (TPES-equivalent to net consumption of energy) and total carbon dioxide emissions from fuel combustion is relatively small (1.0% and 1.3%, respectively). However, Australian carbon dioxide emissions, total primary energy supply and electricity consumption per capita were higher than the averages for all major world regions, with the exception of North America (Canada and the United States). Australia's per capita carbon dioxide emissions were more than four times the world average and nearly 50 per cent greater than the average for OECD countries.
Graph 5 compares Australia's total primary energy supply (net energy consumption) per capita since the early 1970s with a number of other developed countries as well as Asia. Australia's per capita total primary energy supply has increased steadily since 1971, contrasting with the world trend of fairly stable and much lower, per capita total primary energy supply.
4. SELECTED ENERGY INDICATORS FOR WORLD REGIONS AND AUSTRALIA-1997
5. TOTAL PRIMARY ENERGY SUPPLY(a) PER CAPITA-1971-1997
(a) Total primary energy supply consists of: domestic production plus imports minus exports minus international marine bunkers plus/minus stock changes.
Source: OECD/IEA 2000a, 2000b.
ABARE estimates of energy consumption include energy use by industries as well as households, thus high estimates may reflect the presence of energy intensive industries in the affected States and years. The data show per capita consumption of energy for Australia increased from 231 GJ/capita in 1992-93 to 255 GJ/capita in 1997-98, an increase of 10% over this period.
New South Wales and Victoria were the largest consumers of energy (1,382 PJ and 1,280 PJ in 1997-98, respectively). Together these States consumed about 56% of Australia's domestically available energy. New South Wales, however, was one of the lowest per capita consumers of energy, with only Tasmania using less energy per capita in 1997-98 (table 6).
Northern Territory and Western Australia were the largest per capita consumers of energy, at 368 GJ/capita and 362 GJ/capita, respectively, in 1997-98. These States (and Queensland) have experienced quite rapid growth in energy consumption since the mid 1970s. This is due mainly to the concentration of a number of strongly growing energy intensive industries, particularly in the mining and minerals processing sectors in these States (Bush et al. 1999).
Queensland and Western Australia continued to experience the largest increase in per capita energy consumption between 1992-93 and 1997-98, at 15% and 16%, respectively. South Australia's per capita energy use showed a gradual decline between 1993-94 and 1995-96, but has shown an increase since then, with its highest per capita use in 1997-98 (210 GJ/capita) since 1992-93. South Australia has been importing electricity from Victoria since 1989-90. This has led to a reduction in the use of energy for electricity generation in South Australia and a corresponding increase in Victoria. These imports have increased significantly since the deregulation of the Victorian electricity industry in the mid 1990s.
6. ENERGY CONSUMPTION(a), By State
AUSTRALIA'S GREENHOUSE GASES
In December 1992, Australia ratified the United Nations Framework Convention on Climate Change, the main objective of which was to achieve a stable level of greenhouse gas concentrations in the atmosphere that would prevent dangerous human-induced interference with the climate system (AGO 1998). In 1995, a review was made of the adequacy of commitment of the developed countries. This led to negotiations on strengthening their commitments and resulted in the birth of the Kyoto Protocol in December 1997.
Australia was actively involved in the Kyoto negotiations and argued for differential emissions targets depending on circumstances in each country. Australia was allocated a target of restricting emissions to a maximum of eight per cent above 1990 levels in the budget period 2008 to 2012. Factors considered in setting Australia's targets were its current dependence on fossil fuels and relatively high economic and population growth rates. At the Sixth Conference of the Parties (COP 6) held in The Hague in the Netherlands in November 2000, negotiations failed to reach final agreement on key issues of the mechanisms, compliance, carbon sinks, and the role of the developing counties, in the whole process of the protocol. At this stage Australia, and others, have not yet ratified the Kyoto agreement.
In 1998, fuel combustion (stationary energy and transport) generated almost three-quarters (about 73%) of Australia's net greenhouse emissions, excluding land clearing. Other contributors included: agricultural emissions (about 20%); fugitive emissions from fuels (7%); industrial processes and waste (2% and 3%, respectively); with forestry (and other) constituting a sink equivalent to about 5% of emissions (graph 7).
7. GREENHOUSE GAS EMISSIONS (CO2-e), By Sector
(a) Stationary energy.
Source: AGO 2000.
Note: Figures in this publication refer to stationary energy and transport-related emissions. Greenhouse emissions caused by road transport activity have been re-allocated to industries and the household sector undertaking the activities.
Graph 8 shows the energy sector's emissions of carbon dioxide, nitrous oxide and methane in total from 1992-93 to 1997-98. Detailed data for these three key greenhouse gases are presented in chapter 2. The data only include emissions resulting from fuel combustion. Total carbon dioxide equivalent (CO2-e) emissions for these three gases increased by 19% over that period from 285,168 to 339,597 Gg. The largest increase occurred between 1996-97 and 1997-98, with emissions increasing by around 6% between these years.
The bulk of the increase over the years is due to increased electricity generation (over 60% of the increase between 1992-93 and 1997-98), although significant increases in emissions also occurred in the manufacturing, transport and mining sectors (graph 9).
The electricity supply sector accounted for about half of total energy-related emissions between 1992-93 and 1997-98, with their heavy reliance on the combustion of brown and black coal for electricity generation. In 1998, coal accounted for 80% of the fuel share in electricity generation in Australia. Brown coal in particular is the most emission-intensive fuel for electricity generation, and its share in thermal electricity generation increased between 1992-93 and 1997-98. Chapter 3 takes a more detailed look at electricity generation and thermal efficiencies associated with it. Overall, greenhouse gas emissions increased by 25% between 1992-93 and 1997-98 in this sector.
The manufacturing sector contributed about 17% of total energy-related emissions in 1997-98, and total emissions increased by about 9% between 1992-93 and 1997-98. Two industry groups-iron and steel; and basic non-ferrous metal and products-accounted for over half of this sector's total emissions.
Households generated about 13% of greenhouse gas emissions directly in 1997-98, an increase of about 8% from 1992-93. This compares with a population increase of 6% over the same period. The vast majority of this (over 80%) is due to household use of the motor vehicle.
8. ENERGY-RELATED GREENHOUSE GASES (CO2-e)-1992-93 TO 1997-98
(a) Emissions resulting from fuel combustion.
Note: Emissions include carbon dioxide, methane and nitrous oxide only.
9. DIRECT GREENHOUSE GAS EMISSIONS(a)-1992-93 and 1997-98
(a) Includes hunting and trapping; forestry and fishing.
(b) Road transport activity of households and industries has been re-allocated
to the using industry, and households.
(c) Other services includes water and gas.
Note: Refers to energy-related greenhouse gas emissions. Figures are Gg carbon
dioxide equivalents (CO2-e).
Indirect Production of Greenhouse Gas Emissions
The previous graph described the direct generation of greenhouse gases by the energy-using industry group, or sector. The bulk of Australia's energy-related greenhouse gases were emitted in the production and consumption of goods and services for the purpose of household final consumption (about 56%-graph 10). A further 23% of energy-related emissions were generated in the production of goods and services for export. Other final use categories (general government final consumption, gross fixed capital formation) induced the remaining emissions. Diagram 12 describes the direct and indirect production of greenhouse gases, by the final uses.
10. GREENHOUSE GAS EMISSIONS(a), By Final Use Category-1994-95
(a) Energy-related emissions produced either directly or indirectly by final use.
(b) Gross fixed capital formation.
Note: Figures are modelled based on 1994-95 data. Chapter 4 contains more details.
The consumption of electricity by households indirectly produced the greatest amount of energy-related greenhouse gas emissions
(over 50,000 Gg CO2-e). This was followed by direct emissions by households (44,051 Gg CO2-e), most of which is due to the consumption of motor vehicle fuels (graph 11 and diagram 12). Household use of motor vehicles totalled nearly 36,000 Gg CO2-e.
Together, household electricity use and motor vehicle use by households, accounted for over 30% of Australia's energy-related greenhouse gas emissions.
Construction also induced a large amount of greenhouse gases due to its use of building materials which were energy-intensive to produce. Basic non-ferrous metals and metal products, produced mainly for export, were the next largest contributor to total greenhouse gas emissions (graph 11).
Chapter 4 explores the contribution that the production and consumption of all product types make to Australia's energy-related greenhouse gas emissions-including the final purpose of the product.
11. GREENHOUSE GASES INDUCED(a) BY FINAL USE, By product Type-1994-95
(a) Emissions produced indirectly via consumption of products. The exception is direct emissions by households.
(b) Direct production by households, mainly through motor vehicle use.
(c) Includes restaurants, cultural and recreational services, personal and other services.
(d) Includes insurance, property and business services.
(e) Includes community services.
(f) Includes other machinery.
Note: Refers to energy-related greenhouse gas emissions only. These figures are modelled based on 1994-95 data.
12. GREENHOUSE GAS EMISSIONS, Allocated to Final Uses-1994-95
Australia's abundance of fossil fuel and mineral reserves underpins our patterns of energy production and use. In 1998, the expected life spans of black and brown coal resources were calculated at over 200 and 700 years respectively (table 13). Australia also has the world's largest demonstrated uranium resources, which provide for an export market. In addition, Australia has significant natural gas reserves. Some basins supplying natural gas to eastern States have less than ten years worth of proven resources. However, it is anticipated that increased demand will extend the life of the resource as it becomes economic to further develop reserves and as gas pipeline networks are extended, creating access to new markets. Further exploration may also result in new discoveries.
The net present value of these resources was estimated at $76 b in 1998, with natural gas and black coal accounting for 70% of this total value (table 14). The estimated value of energy assets has doubled since 1992-93, mainly as a result of these two products.
13. DEMONSTRATED SUB-SOIL ENERGY ASSETS-1998
14. NET PRESENT VALUE OF ENERGY ASSETS ($M), By Resource Type
Further industry and product breakdowns as well as other information relating to the supply and use of energy in Australia are available in Energy and Greenhouse Gas Emissions Accounts for Australia, 1992-93 to 1997-98. Australian Bureau of Statistics Catalogue No. 4604.0
ABARE 2000, Australian Energy Statistics (electronic data release), November 2000, Canberra.
ABS 2000a, Australian National Accounts: National Balance Sheet, 1999-2000, (Cat. no. 5241.0.40.001).
AGSO 1998b, Unpublished data, MINRES database.
AGO 2000, National Greenhouse Gas Inventory.
Bush, S., Dickson, A., Harman, J. and Anderson, J. 1999, Australian Energy: Market Developments and Projections to 2014-15, ABARE Research Report 99.4, Canberra.
OECD/IEA 2000a, Energy Balances of OECD Countries, 1997-98.
OECD/IEA 2000b, Energy Balances of non-OECD Countries, 1997-98.
For further information see the Environment Themes page.
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This page last updated 24 June 2009