4655.0 - Australian Environmental-Economic Accounts, 2017 Quality Declaration 
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MAIN FINDINGS


Increasingly, decisions taken by governments, businesses and individuals are multi-disciplinary in nature and are therefore appropriately informed only when information supporting these decisions articulates links between socio-economic and environmental factors. For example, decisions taken in areas such as water use and conservation; energy production and use; and control of emissions of greenhouse gases all impact on the environment and the socio-economy. This publication presents data produced in accordance with the System of Environmental-Economic Accounting, an international statistical standard that is consistent with the System of National Accounts and which governs the reporting of integrated socio-economic and environmental information. This system strengthens the basis of decision-making needed to reflect the scientific, economic and social dimensions of many important issues facing the Australian community.


INTEGRATED SOCIOECONOMIC AND ENVIRONMENTAL INDICATORS

Australia's economic production, as measured by Gross Value Added (GVA) in chain volume terms, rose 78% over the period 1996-97 to 2014-15. Over the same period, indicators of environmental pressure related to the production of energy consumption and greenhouse gas (GHG) emissions increased, while water consumption fell. Energy consumption increased 32% while water consumption in Australia has decreased by 22% since 1996-97. GHG emissions increased by 18% between 1996-97 and 2005-06. This was followed by a period of declining GHG emissions and in 2013-14 GHG emissions were 1% above the level reported for 1996-97.


SELECTED SOCIO-ECONOMIC AND ENVIRONMENTAL MEASURES, Australia, 1996-97 to 2014-15
Graph Image for SELECTED SOCIO-ECONOMIC AND ENVIRONMENTAL MEASURES, Australia, 1996-97 to 2014-15

Annotation(s): Index: 1996-97 = 100

Footnote(s): (a) Time series runs to 2013-14.

Source(s): Australian Environmental-Economic Accounts



The measure of environmental pressure per unit of economic production (GVA) is termed a measure of intensity of resource use. For example, a reduction in intensity of resource use over time signals a decline in environmental resource use for every unit of GVA produced and is therefore considered desirable. Between 1996-97 and 2014-15 Australia's GHG emissions intensity, energy intensity and water intensity all declined (footnote 1). Intensity of water use in Australia reached its lowest reported level in 2010-11. However, the increase in water availability over more recent years, due to higher rainfall, has supported a rise in water consumed by industry (it increased by 33% between 2010-11 and 2014-15) and has in turn led to a recent increase in the intensity of water use by industry.


SELECTED INTENSITY MEASURES, Australia, 1996-97 to 2014-15
Graph Image for SELECTED INTENSITY MEASURES, Australia, 1996-97 to 2014-15

Annotation(s): Index: 1996-97 = 100

Footnote(s): (a) Timeseries runs to 2013-14.

Source(s): Australian Environmental-Economic Accounts




INDICATORS OF ENVIRONMENTAL PRESSURE FOR SELECTED INDUSTRIES

Environmental pressure refers to human activities that place pressure on the environment, for example, manufacturing activity giving rise to pollutants. The measures contained in this section provide an indication of environmental pressure for selected industries.

Mining

The value of mining production, as measured by GVA, increased steadily between 1996-97 and 2014-15 (from $49b to $108b) to finish the period up 119%. The mining industry's share of total GVA rose from 6% in 1996-97 to 7% in 2014-15. This increase was accompanied by a proportionately larger rise in the number of people employed in the mining industry, up 180% from 80,500 in 1996-97 to 225,400 in 2014-15.


MINING INDUSTRY, Integrated measures, 1996-97 to 2014-15
Graph Image for MINING INDUSTRY, Integrated measures, 1996-97 to 2014-15

Annotation(s): Index: 1996-97 = 100

Footnote(s): (a) Timeseries runs to 2013-14.

Source(s): Australian Environmental-Economic Accounts



Indicators of environmental pressure for the mining industry reveal a mixed picture. The energy consumed per unit of economic production (energy intensity) by the industry was variable between 1996-97 and 2014-15. After falling early in the period, the energy intensity of mining rose 35% between 2000-01 and 2005-06, thereafter declining to finish unchanged from the start of the full 19 year period.

GHG emissions intensity recorded by the mining industry decreased by 29% for the period 1996-97 to 2013-14 and water intensity decreased by 52% for the period 1996-97 to 2014-15.

Agriculture

The value of production generated by the agriculture industry (including forestry and fishing), as measured by its GVA, rose from $26b in 1996-97 to $39b in 2014-15. The agriculture industry's contribution to total GVA across all industries was 3% in both 1996-97 and 2014-15. Employment in the agriculture industry fell by 26%, from 401,800 in 1996-97 to 297,300 in 2014-15.


AGRICULTURAL INDUSTRY, Integrated measures, 1996-97 to 2014-15
Graph Image for AGRICULTURAL INDUSTRY, Integrated measures, 1996-97 to 2014-15

Annotation(s): Index: 1996-97=100

Footnote(s): (a) Timeseries runs to 2013-14.

Source(s): Australian Environmental-Economic Accounts



The agriculture industry witnessed a steady downward trend in water intensity, decreasing 67% over the period 1996-97 to 2009-10. In response to the drought-dominated climatic conditions of the early 2000's, the agriculture industry became more efficient with water use through infrastructure improvements, technology advancements and changes to crop selection. However, between 2009-10 and 2014-15, increased water availability resulting from higher rainfall accompanied a 38% rise in the volume of water consumed per unit of economic output produced by the agriculture industry.

Overall the energy intensity of the agriculture industry increased 44% in the 19 years to 2014-15. However, year to year movements in energy consumed per unit of economic production by agriculture varied somewhat over the whole period from 1996-97 to 2014-15, primarily due to swings in the industry’s economic output. The GHG emissions intensity of the agriculture industry fell by 63% between 1996-97 and 2013-14.

Manufacturing

GVA of the manufacturing industry rose 11% between 1996-97 and 2014-15 from $92b to $102b. However, the industry's contribution to total GVA fell from 11% in 1996-97 to 7% in 2014-15. The number of people employed by the manufacturing industry also fell, from 1,075,200 in 1996-97 to 911,900 in 2014-15.


MANUFACTURING INDUSTRY, Integrated measures, 1996-97 to 2014-15
Graph Image for MANUFACTURING INDUSTRY, Integrated measures, 1996-97 to 2014-15

Annotation(s): Index: 1996-97 = 100

Footnote(s): (a) Timeseries runs to 2013-14.

Source(s): Australian Environmental-Economic Accounts



The energy intensity of the manufacturing industry was largely unchanged between 1996-97 and 2014-15, while the GHG emissions intensity for the industry declined 14% over the slightly shorter 1996-97 to 2013-14 period.


ENVIRONMENTAL ASSETS

The notion of environmental assets used in this publication is consistent with the System of Environmental-Economic Accounting 2012 (SEEA) definition and can include: subsoil assets, both mineral and energy; land; soil resources; timber resources, both plantation and native forest; aquatic resources (e.g. fish), both cultivated and natural; water resources, comprising surface water, ground water and soil water; and other biological resources. The ABS makes estimates of the value of subsoil, land and timber assets. While the ABS does not separately identify the value of water resources on the national balance sheet, ABS research in this area is described in a recent feature article Experimental estimates of the value of water resource stocks, Australia in Australian Environmental-Economic Accounts, 2016 (cat. no. 4655.0).

The value of Australia’s environmental assets (in current prices) increased 108% over the period 2005-06 to 2015-16 from $2,953.1b to $6,138.1b. The value of Australia’s produced capital also increased over this period, although to a lesser extent (74%), rising from $3,276.3b to $5,680.7b. Environmental assets now make up the largest share of Australia’s capital base as reported on the national balance sheet.


AUSTRALIA'S NATURAL CAPITAL BASE, Current prices, 2005-06 and 2015-16
Graph Image for AUSTRALIA'S NATURAL CAPITAL BASE, Current prices, 2005-06 and 2015-16


Overview of changes in environmental assets

In 2015-16 land accounted for 83% of the value of Australia's environmental assets, down from 92% in 2005-06. Over the same period, the value of land (in current prices) increased 88% to $5,105.0b.

The share of mineral and energy resources among Australia’s environmental assets rose from 8% to 17% in the eleven years to 2015-16. This occurred alongside a 346% rise in the value of mineral and energy resources from $229.0b in 2005-06 to $1,021.1b in 2015-16, a change that is further described below.

The value of Australia's timber assets grew by 20% between 2005-06 and 2015-16. Australia's timber assets are comprised of: native standing timber, which decreased in value by 14% to $1.8b in the eleven years to 2015-16; and plantation standing timber, which rose in value by 29% to $10.2b for the same period. Throughout this period, the value of Australia’s timber assets remained at less than 1% of the total value of Australia's environmental assets.

The value of produced capital on a per capita basis increased in current price terms by 47% from $159,763 in 2005-06 to $235,448 in 2015-16. The value of Australia’s stock of environmental assets on a per capita basis increased by 76% over the same period, from $144,399 in 2005-06 to $254,406 in 2015-16.


ENVIRONMENTAL ASSETS, By type of asset, Value per capita, 2005-06 to 2015-16
Graph Image for ENVIRONMENTAL ASSETS, By type of asset, Value per capita, 2005-06 to 2015-16


Mineral and energy resources

Strong overseas demand for mineral and energy resources, particularly from China, drove a boom in the prices of many of these resources over much of the period 2005-06 to 2015-16. These price rises increased the economic viability of many mineral and energy resources and led to increases in the amount of resources assessed as being 'Economic Demonstrated Resources' (EDR) and therefore to be included as assets within the national balance sheet (footnote 2).


VALUE OF SELECTED MINERAL AND ENERGY RESOURCES, Current prices, 2005-06 to 2015-16
Graph Image for VALUE OF SELECTED MINERAL AND ENERGY RESOURCES, Current prices, 2005-06 to 2015-16


Between 2005-06 and 2015-16, the value of Australia’s iron ore assets rose from $28.0b to $444.0b as a direct result of increased market prices. In turn, the proportion of the value of total mineral and energy resources attributable to iron ore rose from 12% to 43% over the eleven years to 2015-16.

Most categories of petroleum resources rose in value between 2005-06 and 2015-16. Natural gas increased by 508%, condensate by 68% and LPG 5%. In contrast, the value of crude oil fell 15% between 2005-06 and 2015-16. Changes in physical quantities for these stocks between 2005-06 and 2015-16 included both increases and falls, with the stock of natural gas rising by 26% and condensate by 39%, while LPG and crude oil declined by 22% and 21% respectively.


SHARE OF TOTAL ENERGY CONTENT, By type of energy resource (a), 30 June 2015
Graph Image for SHARE OF TOTAL ENERGY CONTENT, By type of energy resource (a), 30 June 2015

Footnote(s): (a) Economically demonstrated resources.

Source(s): Australian Environmental-Economic Accounts



In terms of energy (PJ) content, black coal was Australia's most significant energy resource throughout the period 2002-03 to 2014-15, with an estimated energy content of 1,676,700PJ (or 58% of total) as at 30 June 2015. In terms of energy content, Uranium was the second most significant energy resource (640,136PJ or 22% of total), followed by brown coal (433,160PJ or 15%).


WATER SUPPLY, USE AND CONSUMPTION

Water consumption

Water consumption is the amount of water used in the economy. It refers to water that has entered the economy, but has not been returned to either inland water resources or the sea. Total water use differs from water consumption, because water use includes in-stream use (such as that used in hydro electricity generation) and water supplied to other users and the environment.

Australian water consumption in 2014-15 was 17,375GL, a decrease of 7% or 1,269GL from 2013-14. While water consumption declined between 2009-10 and 2010-11, the subsequent large increase between 2010-11 and 2014-15 was mainly driven by a 44% or 3,242GL increase in water consumption by the agriculture industry (including forestry and fishing).


WATER CONSUMPTION, By industry and households, Australia, 2009-10 to 2014-15
Graph Image for WATER CONSUMPTION, By industry and households, Australia, 2009-10 to 2014-15

Footnote(s): (a) Includes forestry and fishing; (b) Includes gas; (c) Includes waste services.

Source(s): Australian Environmental-Economic Accounts



The agriculture industry was the largest consumer of water throughout the six years from 2009-10 to 2014-15, consuming 10,592GL of water in 2014-15. In both 2009-10 and 2010-11 water consumption by the agriculture industry was steady at around 7,300GL per annum. Water consumed by the agriculture industry increased by 3,242GL between 2010-11 and 2014-15, with the three most significant contributors to this increase being: sheep, beef and grain farming; dairy cattle farming; and other crop growing. In combination, these three industry groups made up 81% of total water consumed by the agriculture industry in 2014-15.

Water consumption by the water supply, sewerage and drainage services industry fluctuated between 2009-10 and 2014-15. It decreased by 18% between 2009-10 and 2010-11, before increasing by 39% between 2010-11 and 2014-15. A significant proportion of water consumed by the water supply industry relates to losses (including leakages) from water distribution networks.

For 2009-10 and 2010-11 water consumption by the manufacturing industry was steady at approximately 650GL per annum, and then decreased by 9%, or 56GL, between 2010-11 and 2014-15. This reduction was driven by the primary metal, metal and fabricated metal product manufacturing industry and the petroleum, coal, basic chemical and chemical product manufacturing industry.

Elsewhere, water consumption patterns were more mixed. The mining industry increased its water consumption by 57% (from 489GL in 2009-10 to 768GL in 2014-15) while water consumed by households was almost unchanged over the same period.

Between 2009-10 and 2014-15, the agriculture industry increased its share of total water consumed in the Australian economy from 53% to 61%. Manufacturing’s share of water consumption dropped from 5% in 2009-10 to 3% in 2014-15, while the share consumed by water supply, sewerage and drainage services fell from 14% in 2009-10 to 12% in 2014-15.

Household consumption

Households’ share of total water consumption in Australia decreased from 14% in 2009-10 to 11% in 2014-15. Over the same period, water consumption by households increased marginally, from 1,844GL in 2009-10 to 1,852GL in 2014-15.

The average price paid for water by Australian households increased by $0.89/kL or 42% between 2009-10 and 2014-15, from $2.10/kL to 2.99/kL. South Australia had the highest average water price in 2014-15 at $4.46/kL (up 73% from 2009-10), followed by Queensland at $3.50/kL (up 43% from 2009-10) and the Australian Capital Territory at $3.16/kL (up 32% from 2009-10). Western Australia had the lowest average water prices for households at $2.40/kL.

Water revenue and expenditure

Total revenue from sales of water and related services by the water supply industry increased from $12,828m to $16,681m (or 30%) between 2009-10 and 2014-15. The water supply industry accounted for 99% of total water revenue throughout the six years to 2014-15.

In 2014-15 Victoria and New South Wales shared the highest proportion (26%) of total water and related services revenue collected by the water supply industry in Australia. For Victoria this was an increase from its 22% share in 2009-10 and for New South Wales a decrease from 28% in 2009-10.


REVENUE FROM NET WATER SALES AND RELATED SERVICES, By state and territory, 2009-10 to 2014-15
Graph Image for REVENUE FROM NET WATER SALES AND RELATED SERVICES, By state and territory, 2009-10 to 2014-15


A comparison of relative use (in physical terms) and expenditure (in monetary terms) of distributed and reuse water across industries and households shows that, as of 2014-15, agriculture uses the most distributed and reuse water (57% of total) and pays comparatively less for it (6% of total water expenditure). In comparison, households use relatively less water (14% of total distributed and reuse water) and account for 51% of the total expenditure on water. While data on types of distributed and reuse water (i.e. potable and non-potable) are not available, water paid for and used by the agriculture industry is almost entirely non-potable.

During the six year period to 2014-15, agriculture’s share of total expenditure on distributed and reuse water remained relatively stable (6% in both 2009-10 and 2014-15), while its share of total water use increased from 43% to 57%. Households share of total expenditure on distributed and reuse water increased from 47% in 2009-10 to 51% in 2014-15, while its share of total water use decreased from 19% to 14% over the same period.


WATER USE (a) Monetary and physical units, Percentage contribution to total, 2014-15
Graph Image for WATER USE (a) Monetary and physical units, Percentage contribution to total, 2014-15

Footnote(s): (a) Distributed and Reuse water; (b) Includes Forestry and Fishing; (c) Electricity and Gas; (d) Water and Waste Services; (e) Includes manufacturing.

Source(s): Australian Environmental-Economic Accounts



The agriculture industry paid $0.09 per kilolitre (kL) in 2014-15 compared to mining ($1.92/kL), electricity and gas ($0.84/kL), other industries ($1.74/kL) and households ($2.99kL). In explaining these differences, water used by agriculture is typically transported through open waterways and channels and the value of this infrastructure is less than that needed for potable water.

Gross value of irrigated agricultural production

Total gross value of irrigated agricultural production (GVIAP) for Australia in 2014-15 was $15.1b, up 26% from 2008-09. The three commodities with the highest GVIAP in Australia in 2014-15 were fruit and nuts ($2.9b, up 21% from 2008-09), dairy ($2.8b, up 24% from 2008-09) and vegetables ($2.7b, up 2% from 2008-09).

Rice and cotton, which are the most water intensive crops, have seen significant increases in GVIAP between 2008-09 and 2014-15 increasing by 680% and 46% respectively, due to increased water availability over this period. Other products recording an increase between 2008-09 and 2014-15 include: production from sheep and other livestock (425%), production from meat cattle (135%), hay production (56%), cereals for grain and seed (46%), sugar cane (37%), dairy production (25%), and fruit and nuts (21%).


ENERGY SUPPLY AND USE

Supply of energy

Between 2002-03 and 2014-15, Australia’s total net supply of energy increased by 32% from 16,698PJ to 22,026PJ. Supply of energy on a 'net' basis accounts for the transformation of primary energy products to secondary energy products and related conversion losses. Thus net supply of energy avoids double-counting amounts of converted primary energy.

In 2002-03, 92% of total net supply was produced domestically and the remainder (8%) was imported. This ratio was substantially maintained throughout the twelve-year period following 2002-03. However, in 2014-15, 10% of total net supply was imported and the remaining 90% produced domestically.

Mining was the most significant producer of domestic energy throughout the period from 2002-03 to 2014-15, principally through the extraction of fossil fuels and uranium. Its contribution to total domestic net energy supply was 86% in both 2002-03 (14,419PJ) and 2014-15 (18,906PJ). Relative shares of net energy supplied to the Australian economy by other industries and by imports remained relatively constant over this period.

Black coal accounts for the largest share of domestic production of energy in Australia. Its share of total domestic production increased from 47% (7,287PJ) in 2002-03 to 62% (12,288PJ) in 2014-15. In contrast, uranium has fallen from 28% (or 4,311PJ) of total domestic production in 2002-03 to 15% (or 3,053PJ) in 2014-15. The share of domestic production of energy in Australia contributed by crude oil and feedstocks also fell, from 8% in 2002-03 (1,233PJ) to 4% (735PJ) in 2014-15.

Renewable energy production increased 20% (or 57PJ) between 2002-03 and 2014-15, although its contribution to total net energy supply remained steady at 2%. Among renewables, wind recorded the largest increase in production, rising from 3PJ in 2008-09, to 41PJ in 2014-15, followed by solar which increased from 3PJ in 2002-03 to 36PJ in 2014-15. Both wood (including wood waste) and hydro recorded decreases in production levels between 2002-03 and 2014-15, falling by 20% and 19% respectively.


PERCENTAGE CONTRIBUTION TO SUPPLY OF RENEWABLE ENERGY, By type, 2002-03 to 2014-15
Graph Image for PERCENTAGE CONTRIBUTION TO SUPPLY OF RENEWABLE ENERGY, By type, 2002-03 to 2014-15

Footnote(s): (a) Includes Wood Waste.

Source(s): Australian Environmental-Economic Accounts



Imports of energy products increased by 66% from 1,267PJ in 2002-03 to 2,104PJ in 2014-15. Among energy imports, crude oil and refinery feedstock represented 1,082PJ or 85% of total energy imports in 2002-03, falling to 957PJ or 45% in 2014-15. Imports of refined fuels increased by 466% from 177PJ in 2002-03 to 1,002PJ in 2014-15 and among these products, diesel imports became markedly more predominant. Across the period 2002-03 to 2014-15, diesel imports rose by 830% from 63PJ to 586PJ while imports of other refined products (including petrol) rose by 265% from 114PJ to 416PJ.

Use of energy

Between 2002-03 and 2014-15, Australia’s domestic net energy use (i.e. by industry, households and government, but excluding exports) increased by 35% from 3,282PJ to 4,447PJ.

Net energy use by industry increased by 636PJ or 27% between 2002-03 and 2014-15, from 2,381PJ to 3,017PJ. Net energy use by industry as a percentage of total domestic energy use increased from 72% to 74% over the same period. The main energy sources used by industry are diesel (809PJ or 27% of energy used by industry in 2014-15, compared with 532PJ or 22% in 2002-03), electricity (695PJ or 23% of energy used by industry in 2014-15, compared with 599PJ or 25% in 2002-03), natural gas (622PJ or 21% of energy used by industry in 2014-15, compared with 515PJ or 22% in 2002-03).

The household sector’s net energy use increased by 132PJ between 2002-03 and 2014-15 from 932PJ to 1,064PJ, though its relative share of total domestic energy use decreased from 28% to 26% over the same period. The main fuel sources used by households are petrol (462PJ or 43% of total household energy use in 2014-15) and electricity (206PJ or 19% of total household energy use in 2014-15).

Manufacturing remains the largest industry user of energy, making up 33% of net energy use by Australian industry in 2014-15, though this share is down from 39% in 2002-03. For the period 2002-03 to 2014-15, increases in relative shares were reported by mining (from 11% to 16%) and transport (from 18% to 22%).


NET ENERGY USE, By Australian industry, 2002-03 to 2014-15
Graph Image for NET ENERGY USE, By Australian industry, 2002-03 to 2014-15

Footnote(s): (a) Includes Forestry and Fishing; (b) Includes Gas, Water and Waste Services; (c) Commercial and Services includes a range of service industries, including retail, wholesale, financial and health.;(a) Includes Forestry and Fishing; (b) Includes Gas, Water and Waste Services; (c) Commercial and Services includes a range of service industries, including retail, wholesale, financial and health.

Source(s): Australian Environmental-Economic Accounts



Exports remain the largest net use of Australian energy products, accounting for 15,725PJ or 78% of total net energy use in 2014-15, which is the same percentage share reported for 2002-03. The main energy products exported are black coal (5,907PJ or 50% of energy exports in 2002-03, increasing to 11,063PJ or 70% in 2014-15) and uranium (4,509PJ or 38% of energy exports in 2002-03, decreasing to 2,592PJ or 16% in 2014-15). Natural gas exports rose during the period (from 426PJ or 4% of energy exports in 2002-03, to 1,365PJ or 9% in 2014-15). In contrast, crude oil and refinery exports declined over the same period (from 884PJ or 7% of energy exports in 2002-03, to 616PJ or 4% in 2014-15).


NET ENERGY EXPORTS, By product, 2002-03 to 2014-15
Graph Image for NET ENERGY EXPORTS, By product, 2002-03 to 2014-15

Footnote(s): (a) Includes coal seam methane, town gas and coal mine waste gas, excludes biogas; (b) Includes refinery feedstock, ethane and other petrochemical feedstocks.

Source(s): Australian Environmental-Economic Accounts



Electricity use and expenditure

Australian industries and households paid $43,017m to use 888PJ of electricity in 2013-14, up from $24,234m to use 871PJ of electricity in 2008-09.

The manufacturing industry was the largest user of electricity in all years from 2008-09 to 2013-14. In 2008-09, the Manufacturing industry used 236PJ (or 27% of total domestic use of electricity) and paid $4,430m for its electricity use (18% of total expenditure on electricity). In 2013-14, the industry consumed 239PJ of electricity (27% of total domestic use) and paid $6,689m (16% of total expenditure).

In contrast, households used 213PJ (or 24% of domestic use of electricity) in 2008-09, paying $9,533m (39% of total expenditure on electricity). By 2013-14, household use of electricity had declined to 203PJ (23% of total domestic consumption) while household expenditure had increased to $16,136m (38% of total expenditure on electricity).


ELECTRICITY USE (a), Monetary and physical units, Percentage contribution to total, 2013-14
Graph Image for ELECTRICITY USE (a), Monetary and physical units, Percentage contribution to total, 2013-14

Footnote(s): (a) 'Electricity' includes solar, solar hot water, wind, hydro and other electricity; (b) Includes Forestry and Fishing; (c) Includes gas, water and waste; (d) Commercial and services includes a range of service industries, including retail, wholesale, financial and health.

Source(s): Australian Environmental-Economic Accounts




GREENHOUSE GAS EMISSIONS

All estimates of direct greenhouse (GHG) emissions contained in this publication are recorded on a SEEA basis i.e. on a residence basis. SEEA based modifications for the residence principle include extending the geographic boundary of a country to cover activities of economic units resident in Australia and their international activities. The residence basis allows full comparability with standard economic statistics but differs somewhat from the territory basis. The territory basis underpins estimates of GHG emissions produced in accordance with the United Nations Framework Convention on Climate Change (UNFCCC).

Between 2007-08 and 2013-14 total direct GHG emissions by Australia measured on a SEEA basis fell by 10%, from 596.7Mt of CO2 equivalent GHG emissions to 534.8Mt. This decline is mainly due to the agriculture industry (including forestry and fishing) which recorded a fall in emissions of 44.7Mt (or 35%) between 2007-08 (128.1Mt) and 2013-14 (83.4Mt). The main cause of falling GHG emissions were due to less livestock and consequently less enteric fermentation over this time. The manufacturing industry also recorded a reduction in GHG emissions from 76.0Mt in 2007-08 to 66.5Mt in 2013-14 (i.e. a fall of 9.5Mt or 13%). Industries to increase their direct GHG emissions over the seven years to 2013-14 included mining (up 18% to 69.0Mt) and transport (up 5% to 38.6Mt).

DIRECT GHG EMISSIONS (a), Selected industries and households, 2007-08 to 2013-14
Graph Image for DIRECT GHG EMISSIONS (a), Selected industries and households, 2007-08 to 2013-14

Footnote(s): (a) SEEA basis; (b) Includes Forestry and Fishing; (c) Includes Gas, Water and Waste services.

Source(s): Australian Environmental-Economic Accounts



The electricity, gas, water and waste services industry was the most significant contributor to direct GHG emissions throughout the 2008-09 to 2013-14 period. In 2013-14 it generated 186.0Mt (or 35% of total direct GHG emissions) down from 217.4Mt (36% of total direct GHG emissions) in 2008-09. Other significant contributors to total GHG emissions in 2013-14 were: agriculture (which accounted for 16% of total GHG emissions, down from 22% in 2008-09); manufacturing (12% of total GHG emissions in both 2013-14 and 2008-09); and mining (13% of total GHG emissions, up from 10% in 2008-09).

GHG emissions generated by Australian households increased 10%, from 52.5Mt in 2008-09 to 57.8Mt in 2013-14. Over the same period, households’ share of total direct GHG emissions increased from 9% in 2008-09 to 11% in 2013-14.


DIRECT GHG EMISSIONS (a), percentage contribution to total by selected industries and households, 2008-09 to 2013-14
Graph Image for DIRECT GHG EMISSIONS (a), percentage contribution to total by selected industries and households, 2008-09 to 2013-14

Footnote(s): (a) SEEA basis; (b) Includes Forestry and Fishing; (c) Includes Gas, Water and Waste services.

Source(s): Australian Environmental-Economic Accounts




ENVIRONMENTAL TAXES

In 2014-15, Australian governments levied environmental taxes of $29.9b, a 19% decline on the level ($36.7b) reported for 2013-14. This fall is primarily due to the discontinuation of the Carbon Pricing Mechanism ('carbon tax') commencing from the year 2014-15.

Environmental taxes comprised 7% of total Australian tax revenue in 2014-15, a decline from its peak share of 9% recorded in 2012-13. Revenue from environmental taxes remained at around 2% of GDP throughout the 2003-04 to 2014-15 period.

ENVIRONMENTAL TAXES, Proportion of total tax and GDP, 2003-04 to 2014-15
Graph Image for ENVIRONMENTAL TAXES, Proportion of total tax and GDP, 2003-04 to 2014-15


Environmental taxes by type of tax

In 2014-15 the most significant environmental tax in Australia was the excise duty on crude oil, LPG and petroleum products, accounting for 59% of total environmental taxes in this year. Between 2003-04 and 2014-15, this category of environmental taxes increased from $13.5b to $17.6b, a rise of $4.1b, or 30%.

The Carbon Pricing Mechanism raised $6.5b in its first year of operation (2012-13) and $6.9b in its second and final year of operation (2013-14). The scheme required entities which emitted over 25,000 tonnes per year of carbon dioxide equivalent greenhouse gases and which were not in the transport or agriculture sectors to obtain emissions permits.

Renewable energy certificates (RECs) fell by $0.3b between 2012-13 and 2014-15 (from $1.9b to $1.6b) but still recorded the greatest percentage rise among all categories of environmental taxes between 2003-04 and 2014-15, increasing 1,500% from $0.1b to $1.6b. Renewable energy targets (RETs) create a legal requirement for liable entities (typically electricity retailers) to purchase a set number of RECs and the observed changes in RECs is due directly to changes to the schedule of RETs.


ENVIRONMENTAL TAXES, By selected tax type, Current prices, 2013-14 and 2014-15
Graph Image for ENVIRONMENTAL TAXES, By selected tax type, Current prices, 2013-14 and 2014-15

Footnote(s): (a) Carbon Pricing Mechanism; (b) Renewable energy certificates; (c) Passenger motor vehicles duty (import); (d) Stamp duty on vehicle registration.

Source(s): Australian Environmental-Economic Accounts



Environmental taxes paid by industry and households

The share of total environmental taxes paid by households was 32% in 2014-15, up from 26% reported for both 2012-13 and 2013-14. This rise in households' share of total environmental taxes in 2014-15 is due to the abolition of the Carbon Pricing Mechanism, which was only levied on businesses. The value of environmental taxes paid by households rose by 43% between 2003-04 ($6.7b) and 2014-15 ($9.6b).

The transport industry paid more environmental taxes than any other industry in 2014-15, contributing $5.8b or 19% of all environmental taxes (up from 16% of all environmental taxes in 2013-14). Electricity, gas and water supply industry paid $1.9b in environmental taxes in 2014-15 (6% of all environmental taxes), down from $6.4b (17% of all environmental taxes) in 2013-14. This fall was primarily due to the abolition of the Carbon Pricing Mechanism, since the electricity, gas and water supply industry in 2013-14 made up 64% (or $4.4b) of total industry payments of this tax. The electricity, gas and water supply industry also made 98% (or $1.6b) of total RECs payments in 2013-14.

The commercial and services industry made the second highest industry contribution to total environmental taxes paid in 2014-15 with $5.3b. The share of environmental taxes paid by this industry grew steadily between 2003-04 (14% of all environmental taxes) and 2014-15 (18%).

The mining industry generally maintained its share of all environmental taxes paid at 6% during the period 2003-04 to in 2014-15. However, this industry experienced a spike in its environmental taxes paid during 2012-13 and 2013-14 (to 9% of all environmental taxes paid). This increase was largely due to the effect of the Carbon Pricing Mechanism, and to a lesser extent the Mineral Resource Tax, both of which were introduced in 2012-13.


ENVIRONMENTAL TAXES PAID, By industry and households, Share of total, 2013-14 and 2014-15
Graph Image for ENVIRONMENTAL TAXES PAID, By industry and households, Share of total, 2013-14 and 2014-15

Footnote(s): (a) Includes Forestry and Fishing; (b) Includes Gas and Water supply; (c) Commercial and Services includes a range of service industries, including retail, wholesale, financial and health.

Source(s): Australian Environmental-Economic Accounts




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FOOTNOTES

1 The intensity indicators presented in this publication are described in the Glossary.<back
2 Economic Demonstrated Resources (EDR) is used to measure the physical extent of a given resource. EDR is a measure of the resources that are established, analytically demonstrated or assumed with reasonable certainty to be profitable for extraction or production under defined investment assumptions. Classifying a mineral resource as EDR reflects a high degree of certainty as to the size and quality of the resource and its economic viability. <back