MAIN FINDINGS


INTEGRATED SOCIOECONOMIC AND ENVIRONMENTAL INDICATORS

Australia's economic production, as measured by Gross Value Added (GVA) in chain volume terms, rose 69% over the period 1996-97 to 2012-13. Over the same period, indicators of environmental pressure related to the production of waste, energy consumption and greenhouse gas (GHG) emissions all increased, while water consumption fell. Waste production rose 154%, energy consumption increased 30% and GHG emissions increased 21%. Water consumption in Australia has fallen by 40% since 1996-97. The drop can be partly explained by the reduction in water availability resulting from climatic conditions (e.g. drought) as well as the adoption of water conservation measures. The increase in water availability over the most recent years, due to higher rainfall, has supported a rise in water consumption (an increase of 48% between 2010-11 and 2012-13) and in turn led to an increase in the intensity of water use by industry.



A comparison of changes in selected indicators of environmental pressure per unit of economic production (GVA) between 1996-97 and 2012-13 illustrates, among other things, the close correlation between Australia's GHG emissions intensity and energy intensity(footnote 1). Both followed a similar downward trend with GHG emissions intensity declining by 26% between 1996-97 and 2011-12, while energy intensity fell by 23% between 1996-97 and 2012-13.



Waste intensity is the only reported indicator of intensity to increase between 1996-97 and 2012-13 (51%). This result is consistent with international evidence which suggests that economic growth is associated with growth in waste production per capita(footnote 2).


INDICATORS OF ENVIRONMENTAL PRESSURE FOR SELECTED INDUSTRIES


Mining

The value of mining production as measured by GVA increased steadily between 1996-97 and 2012-13, to finish the period up 83% from $64b to $117b. The Mining industry's share of total GVA rose from 8% in 1996-97 to 9% in 2012-13. This increase was accompanied by a proportionately larger rise in the number of persons employed in the mining industry, up 223% from 80,500 in 1996-97 to 260,000 in 2012-13.



The 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 2012-13. After falling early in the period, the energy intensity of mining rose 45% between 2000-01 and 2003-04, then declined thereafter to finish largely flat over the full 17-year period.

The Mining industry increased its focus on lower value (dollar per tonne) commodities, such as coal and iron ore during the early-to-mid 2000s. This resulted in a relatively greater level of energy use for extraction and processing than for commodities with higher unit values (i.e. more tonnes must be removed in order to generate the same value of production). Part of this relates to the higher proportion of production coming from open cut mines. This method typically requires removal of large quantities of soil, rock and so on (i.e. overburden) to expose the commodity, with a corresponding increase in energy use for overburden removal, before commodity production begins.

Waste intensity recorded the greatest increase among the indicators of environmental pressure for the Mining industry, rising 164% in the 17-year period to 2012-13. The majority of this increase occurred between 2003-04 and 2010-11 when waste intensity rose by 178%. This period coincides with a rapid expansion of the Mining industry, with opening and expanding mines contributing to a major proportion of waste production in the Mining industry. Similarly, the clean-up of laydown yards, historic waste stockpiling and demolition of closed mines produces large amounts of waste.

GHG emissions intensity and water intensity recorded for the Mining industry decreased by 7% and 54% respectively for the period 1996-97 to 2012-13.


Agriculture

The value of production generated by the Agriculture industry, as measured by its GVA, rose from $24b to $35b between 1996-97 and 2012-13. The Agriculture industry's contribution to total GVA across all industries dropped from 3% in 1996-97 to 2% in 2012-13. This decrease was accompanied by a 27% drop in employment in the Agriculture industry, from 404,000 in 1996-97 to 295,000 in 2012-13.



Consistent with the change in water intensity observed for the mining industry, the Agriculture industry witnessed a steady trend downwards, decreasing 43% over the period 1996-97 to 2009-10. In response to the climatic conditions of the early 2000's (e.g. drought), the Agriculture industry became more efficient with water use through infrastructure improvements, technology advancements and changes to crop selection. Between 2009-10 and 2012-13, however, increased water availability resulting from higher rainfall accompanied a 73% rise in the volume of water consumed per unit of economic output produced by the Agriculture industry.

The energy intensity of the Agriculture industry increased 23% over the 17 years to 2012-13. The energy consumed per unit of economic production by agriculture was variable over the whole period from 1996-97 to 2012-13, primarily due to swings in the industry’s economic output. GHG emissions intensity was similarly variable, rising 18% in the decade to 2007-08, before falling thereafter to finish the recorded period down 22%. In contrast, waste production by agriculture has recorded a 31% increase in intensity between 1996-97 and 2012-13.


Manufacturing

GVA of the Manufacturing industry rose 15% between 1996-97 and 2012-13 from $89b to $102b. However, the industry's contribution to total GVA fell from 11% in 1996-97 to 7% in 2012-13. Similarly, the number of persons employed in the Manufacturing industry fell from 1,075,000 in 1996-97 to 917,000 in 2012-13.



In a similar pattern to the Mining industry, recorded GHG emissions and energy intensities for manufacturing diverged between 1996-97 and 2012-13. The energy intensity of the Manufacturing industry increased 11% over the 16 years to 2012-13, while the GHG emissions intensity for the industry declined 17% over the slightly shorter 1996-97 to 2011-12 period. Waste intensity experienced the greatest increase of manufacturing’s environmental pressure indicators, increasing 28% between 1996-97 and 2012-13.


ENVIRONMENTAL ASSETS


The notion of environmental assets used in this publication is consistent with the SEEA definition and has the potential to 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 currently estimate the value of water resources or aquatic resources, they are the subject of ongoing research.

The value of Australia’s environmental assets (in current prices) increased 104% over the period 2004-05 to 2013-14 from $2,665b to $5,445b. The value of Australia’s produced capital also increased over the same period, although to a lesser extent (75%), rising from $3,014b to $5,264b. Environmental assets now represent the largest share of Australia’s capital base.



Overview of changes in environmental assets

In 2013-14, land accounted for 78% of the value of Australia's environmental assets, down from 91% in 2004-05. Over the same period, the value of land (in current prices) increased 76% to $4,268b.

The share of mineral and energy resources among Australia’s environmental assets rose from 8% to 21% in the decade to 2013-14. This occurred alongside a 420% rise in the value of mineral and energy resources from $224b in 2004-05 to $1,166b in 2013-14, a change that is further described below.



The overall value of Australia's timber assets grew by 16% between 2004-05 and 2013-14. Australia's timber assets are comprised of: native standing timber, which decreased in value by 32% to $2b in the decade to 2013-14; and plantation standing timber, which rose in value by 30% to $10b 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 50%, from $149,399 in 2004-05 to $224,080 in 2013-14. The value of Australia’s stock of environmental assets on a per capita basis increased by 76% over the same period, from $132,072 in 2004-05 to $231,798 in 2013-14.


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 decade to 2013-14. The price rises increased the economic viability of many mineral and energy resources and led to increases in the amount of resources assessed as being within the scope of economically demonstrated resources (EDR) for these mineral and energy assets(footnote 3).



Between 2004-05 and 2013-14, the value of Australia’s iron ore assets rose from $20b to $491b 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 9% in 2004-05 to 42% 2013-14. Over the same period, physical estimates of the extent of EDR iron ore assets rose from 16 gigatonnes to 57 gigatonnes, a 269% increase. Much of this change is explained by reclassification of iron ore deposits from sub-economic to economic categories(footnote 4).

Among other categories of mineral and energy resources, notable increases in the physical quantity of EDR between 2004-05 and 2013-14 included increases for copper (125%), gold (80%), silver (100%) and rare earths (538%). Lithium recorded the largest increase, with the nation’s physical EDR stocks of the resource rising 805% over the decade to 2013-14.

For bauxite resources, estimates of physical quantity rose 14% from 5.8Gt to 7.0Gt over the 10 years to 2013-14. However, the value of Australia's bauxite assets fell considerably (85%) over the same period from $16b to $2b. The fall occurred against a backdrop of an over-supply of aluminium, of which bauxite is the most important ore, and increased refining costs(footnote 5).

In 2013-14, the physical extent of Australia’s energy resources was estimated at: 62Gt for black coal; 44Gt for brown coal; 1,164Kt for uranium; 2,659b cubic metres for natural gas; 109GL for crude oil; 293GL for condensate; and 101GL for liquefied petroleum gas (LPG).

Black coal EDR increased significantly during the 2004-05 to 2013-14 period mainly due to new discoveries and through reclassification of existing resources(footnote 4). Physical estimates of Australia's black coal rose 56% over the decade to 2013-14. This was accompanied by a significant increase in value of black coal from $7b to $96b.

In contrast, the value of Australia's brown coal fell by 62% between 2004-05 and 2013-14, despite an 18% physical increase in brown coal EDR in Australia.

Between 2003-04 and 2008-09, the value of Australia's uranium deposits increased from $181m to over $866m. Since then, however, the economic value of uranium has fallen with international prices, dropping 88% between 2008-09 and 2013-14 to $107m, while physical estimates for the resource have remained stable (1164Kt in 2013-14).

Monetary values for all categories of petroleum resources in Australia increased over the 2004-05 to 2013-14 period: the value of natural gas increased 249%; condensate increased 149%; liquid petroleum gas (LPG) increased 131%; and crude oil increased 21%. Changes to the physical stocks of the resources were mixed, however, with rises for condensate (29%) and natural gas (11%) contrasting with declines for LPG (49%) and crude oil (39%).



In terms of energy (petajoules-PJ) content, black coal remained Australia's most significant energy resource throughout the 2008-09 to 2012-13 period, with an estimated energy content of 1,663,200PJ (or 58% of total) as at 30 June 2013. This is followed by uranium (655,480PJ or 23%) and brown coal (433,160PJ or 15%).


Resource rent and depletion

Resource rent is the benefit derived from holding and using environmental assets. It comprises a return on environmental assets and depletion, with the latter representing a change in the monetary value of the asset between the beginning and end of any one year arising purely from its extraction. For Australia, experimental estimates of resource rent and depletion are available in respect of subsoil mineral and energy assets. The availability of statistics for resource rent and depletion enables estimates for a return on energy and mineral assets to be determined.

The resource rent of subsoil assets increased 192% in the decade to 2013-14 from $21.8b to $63.7b. Of this, depletion increased 72%, while the value of the return on mineral and energy assets rose 242%.

	Return on mineral	Depletion	Resources rent
	$b	$b	$b
2004-05	15.4	6.4	21.8
2005-06	20.1	7.0	27.2
2006-07	24.6	7.4	32.0
2007-08	34.6	8.4	42.9
2008-09	38.4	11.8	50.2
2009-10	44.8	9.4	54.2
2010-11	48.8	8.9	57.7
2011-12	52.3	9.8	62.2
2012-13	50.6	10.5	61.1
2013-14	52.7	11.0	63.7

WATER SUPPLY, USE AND CONSUMPTION


Water consumption

Water consumption is the amount of water lost by the economy during use, meaning that the water has entered the economy, but has not been returned to either 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 to the environment.

Australian water consumption was 19,749GL in 2012-13, an increase of 3,730GL, or 23%, on a year earlier. While water consumption declined between 2008-09 and 2010-11, the subsequent large increase between 2010-11 and 2012-13 was mainly driven by a 5,621GL, or 76%, rise in water consumption by the Agriculture industry.



The Agriculture industry was the largest consumer of water throughout the five year period from 2008-09 to 2012-13, consuming 12,971GL of water in 2012-13. Water consumption by the Agriculture industry was steady at around 7,300GL per annum between 2008-09 and 2010-11, before increasing significantly through the latter part of the period. The rise in water consumption through the latter period was driven by sheep, beef and grain farming, which increased 2,825GL, or 192%, and was the largest contributor to water consumption by the Agriculture industry (accounting for 44% of total agricultural water consumption in 2012-13).

Water consumption by the Water supply, sewerage and drainage services industry was variable between 2008-09 and 2012-13. Despite falling 32% from 2008-09 to 2010-11, water consumption by the industry increased thereafter to finish up 4% to 2,408GL over the five years to 2012-13. A significant proportion of water consumed by the Water supply industry is leakages from water distribution networks.

Water consumption by the Manufacturing industry was steady at approximately 650GL per annum over the three years to 2010-11, and then decreased by 121GL, or 19%, from 2010-11 to 2012-13. Reductions in the water consumed by the Wood, pulp, paper and converted paper product industry, and the Food, beverage and tobacco product industry drove the decrease. Between 2010-11 and 2012-13, water consumption by the former fell from 92GL to 54GL, a 41% decline. The move was associated with the industry’s falling volume of production (GVA fell 13% over the same timeframe). The decline in water consumption by the Food, beverage and tobacco product industry was less pronounced, falling from 295GL to 272GL over the same period (an 8% decline)(footnote 6).

In other industries, water consumption patterns were more mixed. The Mining industry increased its water consumption from 506GL to 614GL, or 21%, between 2008-09 and 2012-13, while water consumption by the Electricity and gas industry was largely unchanged over the same period.

Agriculture has the largest share of total water consumption in Australia. Between 2008-09 and 2012-13, the industry increased its share of total water consumption from 52% to 66%. Manufacturing’s share of total water consumption dropped from 5% in 2008-09 to 3% in 2012-13. Other industries to decrease their share of total water consumption over the same period included Mining, down from 4% in 2008-09 to 3% in 2012-13, and Water supply, sewerage and drainage services, down from 16% in 2008-09 to 12% in 2012-13.


Household consumption

Households’ share of total water consumption in Australia decreased from 13% in 2008-09 to 9% in 2012-13. While total water consumption by households increased 2% from 1,818GL over the same period, the average water consumed per Australian household fell by 5% between 2008-09 and 2012-13.

At the state level, changes in household water consumption were mixed in the five years to 2012-13. The Australian Capital Territory experienced the largest increase (up 9%), following by Victoria (up 8%) and Queensland (up 6%). New South Wales households increased their water consumption by 4% in the five-years to 2012-13. Households in the state held the largest share of total water consumption (31%) in 2012-13. Household water consumption in Tasmania and the Northern Territory decreased 43% and 18% respectively, which coincided with the implementation of improved metering systems in both regions, while Western Australia and South Australia were largely unchanged between 2008-09 and 2012-13.

The average price paid for water by Australian households increased by $1.10/KL or 67% between 2008-09 and 2012-13, from $1.63/KL to 2.73/KL. South Australia had the highest average water price at $4.26/KL in 2012-13 (up 94% from 2008-09), followed by the Queensland at $3.25/KL (up 68% from 2008-09) and the Australian Capital Territory at $2.90/KL (up 27% from 2008-09). Western Australia had the lowest average water prices for households at $1.55/KL. While water prices for households in the Northern Territory recorded the highest increase of any state or territory between 2008-09 and 2012-13 (114%), the average price in the territory was the second lowest across Australia at $1.75/KL in 2012-13.

In 2012-13, Western Australia consumed 18% of all water in Australia, while contributing 11% of total expenditure on water. Conversely, South Australia consumed 7% of the national total while paying 9%.


Water revenue and expenditure

Total revenue from domestic sales of water increased from $11,520m to $16,128m (or 40%) between 2008-09 and 2012-13. The water supply industry accounted for 99% of total water revenue in 2012-13. This share has remained constant throughout the five-years to 2012-13.

Of the total water revenue collected by the water supply industry in Australia in 2012-13, New South Wales had the highest proportion of any state (27%, down from 28% in 2008-09), followed by Victoria (25%, up from 21% in 2008-09) and Queensland (24%, unchanged from 2008-09).



A comparison of relative use (in physical terms) and expenditure (in monetary terms) of distributed and reuse water across industries and households shows that, in 2012-13, agriculture used 63% of distributed and reuse water, while only contributing 7% of total water expenditure. In comparison, households used 12% of total distributed and reuse water, but accounted for 52% 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 five year period to 2012-13, agriculture’s share of total expenditure on distributed and reuse water remained relatively stable (6% in 2008-9 compared with 7% in 2012-13), while the industry’s share of total water use increased from 40% to 63%. Households’ share of total expenditure on distributed and reuse water increased from 45% in 2008-09 to 52% in 2012-13, while the sector’s share of total water use decreased from 18% to 12% over the same period.

A contrast is also apparent in the prices paid per kilolitre (KL) in 2012-13 between agriculture ($0.07/KL) and all other industries (mining $2.17/KL, manufacturing $1.22/KL, electricity and gas $0.55/KL, water and waste services $0.69/KL and other industries $2.28/KL). Much of the differences can be explained by the fact that the water used by agriculture is typically untreated and is transported through open waterways and channels. The value of this infrastructure, therefore, is less than that needed for potable water.


Industry intensity of water use

Water intensity is a measure of the water consumed to produce one unit of economic output. It is calculated by dividing water consumption (GL) by industry GVA. The volume of water required by the Agriculture industry (including forestry and fishing) to produce one unit of economic output fell by 67% to 0.21GL/$m GVA between 1996-97 and 2010-11. Since then, the water intensity of agriculture has increased 75% to 0.37GL/$m GVA in 2012-13, against a backdrop of easing drought conditions. The water intensity of all other industries declined 40% over the 1996-97 to 2012-13 period.




Gross Value of Irrigated Agricultural Production

The total Gross Value of Irrigated Agricultural Production (GVIAP) for Australia in 2012-13 was $13.4b, up 12% from 2008-09. The three commodities with the highest GVIAP in Australia were fruit excluding grapes ($2.8b, up 17% from $2.3b in 2008-09), vegetables ($2.7b, up 5% from $2.6b in 2008-09) and dairy ($1.9b, down 16% from $2.3b in 2008-09).

The GVIAPs of rice and cotton, which are the most water intensive crops, rose significantly during the 2008-09 to 2012-13 period, increasing by 763% and 189% respectively. Other products recording an increase in the five-years to 2012-13 include: sheep and other livestock (46%); meat cattle (5%); sugar cane (12%); and other broadacre crops (29%).

Total GVIAP for cereals grown for grain and seed decreased 55% or $174m between 2008-09 and 2010-11. Since then, GVIAP for cereals has increased to finish the five-years to 2012-13 up 10%. Total GVIAP for grapes has been variable, decreasing 22% between 2008-09 and 2010-11 before increasing 15% between 2010-11 and 2012-13.


ENERGY SUPPLY AND USE


Supply of energy

Between 2008-09 and 2012-13, Australia’s total net supply of energy increased by 9% from 19,890PJ to 21,665PJ. Net supply of energy 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 2008-09, 91% of total net supply was produced domestically and the remainder (9%) was imported. This pattern has been largely stable throughout the five-year period following 2008-09. In 2012-13, 90% of total net supply was produced domestically, with the remaining 10% from imports.

Mining was the main producer of domestic energy throughout the 2008-09 to 2012-13 period, principally through the extraction of fossil fuels and uranium. The industry’s contribution to the total domestic net energy supply was 86% (or 18,536PJ) in 2012-13, which was unchanged from five years earlier. Relative shares of net energy supplied to the Australian economy by other industries and imports also remained relatively constant over the same period.

Black coal accounts for the majority of domestic production of energy in Australia. The commodity has increased its share of total domestic production from 45% (or 9,009PJ) in 2008-09 to 50% (or 10,790PJ) in 2012-13. In contrast, uranium has fallen from 24% (or 4,846PJ) of total domestic production in 2008-09 to 17% (or 4,229PJ) in 2012-13.

Renewable energy production increased 29% (or 76PJ) between 2008-09 and 2012-13, although its contribution to total net energy supply only rose from 1% to 2%. Solar recorded the largest increase in production over the five-years to 2012-13, rising 200% from 9PJ (or 3% of total energy supply) in 2008-09, to 27PJ (or 8% of total energy supply) in 2012-13. Wood and wood waste was the only category of renewable energy to decrease production levels between 2008-09 and 2012-13 (5%).



Imports of energy products increased by 21% from 1,764PJ in 2008-09 to 2,136PJ in 2012-13. The most significant energy import is crude oil and refinery feedstock, which represented 940PJ or 53% of energy imports in 2008-09, increasing to 1,160PJ or 54% in 2012-13. In contrast, imports of petrol declined from 135PJ or 8% in 2008-09 to 123PJ or 6% in 2012-13. While other refined fuels and products increased from 222PJ in 2008-09 to 224PJ 2012-13, its share of total energy imports declined from 13% to 10% over the same period.


Use of energy

Between 2008-09 and 2012-13, Australia’s domestic net energy use (i.e. by industry, households and government, but excluding exports) increased by 6% from 3,887PJ to 4,139PJ.

Net energy use by industry increased by 210PJ between 2008-09 and 2012-13 from 2,882PJ to 3,092PJ. Net energy use by industry as a share of total domestic energy use also increased marginally from 74% to 75% over the same period. The main energy sources used by industry are diesel (743PJ or 24% of energy used by industry in 2012-13, compared with 619PJ or 21% in 2008-09), natural gas (617PJ or 20% of energy used by industry in 2012-13, compared with 638PJ or 22% in 2008-09), and electricity (679PJ or 22% of energy used by industry in 2012-13, compared with 670PJ or 23% in 2008-09).

The household sector’s net energy use increased by 42PJ between 2008-09 and 2012-13 from 1,005PJ to 1,047PJ, though its relative share of total domestic energy use decreased slightly from 26% to 25% over the same period. The primary fuel sources used by households are petrol (482PJ or 46% of total household energy use in 2012-13) and electricity (207PJ or 20% of total household energy use in 2012-13).

Manufacturing remains the largest user of energy among Australian industries. While this industry increased its net use of energy from 1,116PJ in 2008-09 to 1,170PJ in 2012-13, its relative contribution to total energy use by industry declined marginally from 39% to 38% over the same period. The relative shares of all other industries remained broadly unchanged during the five year period. In 2012-13, these shares included: Transport 20% or 625PJ; Mining 14% or 426PJ; Commercial and services 14% or 445PJ; and Construction 6% or 183PJ.



Exports remain the largest net user of Australian energy products, accounting for 15,569PJ or 80% of domestic energy extraction in 2012-13, up from 13,868PJ or 77% in 2008-09. The main energy products exported are black coal (7,381PJ or 53% of energy exports in 2008-09, increasing to 9,467PJ or 61% in 2012-13) and uranium (4,754PJ or 34% of energy exports in 2008-09, decreasing to 3,944PJ or 25% in 2012-13). Natural gas exports rose during the period (from 838PJ or 6% of energy exports in 2008-09, to 1,303PJ or 8% in 2012-13). In contrast, crude oil and refinery exports declined over the same period (from 678PJ or 5% of energy exports in 2008-09, to 634PJ or 4% in 2012-13).




Energy intensity

The energy intensity of Australian industry decreased by 12% between 2002-03 and 2012-13. After falling early in the reference period, the energy intensity of the Agriculture industry rose 47% between 2003-04 and 2006-07, before declining, thereafter, to finish the full 2002-03 to 2012-13 period up 4%. The energy intensity of the Mining industry was similarly variable, rising 23% between 2002-03 and 2003-04, before gradually declining to finish the full 2002-03 to 2012-13 period down 6%. Elsewhere, increases in energy intensity were recorded for Manufacturing (6%), Water supply and waste services (1%) and Commercial and services (1%) over the 2002-03 to 2012-13 period, while the energy intensity of the Transport industry was down slightly (1%) over the same timeframe.

Australia’s most energy intensive industries were Manufacturing (up from 10,101 GJ/$m GVA in 2008-09 to 10,713 GJ/$m GVA in 2012-13), Transport (up from 8,377 GJ/$m GVA in 2008-09 to 8,431 GJ/$m GVA in 2012-13), and Mining (down from 3,836 GJ/$m GVA in 2008-09 to 3,625 GJ/$m GVA in 2012-13). The least energy intensive industries were Commercial and services (down from 510 GJ/$m GVA in 2008-09 to 449 GJ/$m GVA in 2012-13), and Water supply and waste services (up from 1,203 GJ/$m GVA in 2008-09 to 1,433 GJ/$m GVA in 2012-13).




Electricity use and expenditure

In 2009-10, Australian industries and households in total paid $30,502m to use 907PJ of electricity. The Manufacturing industry was the largest user of electricity in 2009-10, consuming 252PJ or 28% of total domestic use of electricity. The Manufacturing industry paid $4,905m for its electricity use, which represents 16% of total expenditure on electricity.

In contrast, households used 221PJ or 24% of domestic use of electricity in 2009-10. The $10,959m paid by households represents 36% of total expenditure on electricity.




WASTE GENERATION AND MANAGEMENT


Waste generation by industry and households

The Australian economy generated 53m tonnes of waste in 2010-11, which was a slight decrease (1%) from the previous year. The fall was driven by declines in waste generation by the Electricity, gas and water (20%) and Waste management services (19%) industries. Mining recorded the largest increase (127%) in waste generation over 2009-10 to 2010-11.

The Construction industry generated the largest volume of waste in 2010-11 (14.5m tonnes, representing 27% of the total waste generated). This is a decrease of 10% from the previous year (16.0m tonnes, representing 30% of the total waste generated in 2009-10). The bulk of waste generated by construction is masonry and the industry produced 10.9 million tonnes (67%) of all masonry waste in 2010-11, a 2.8 million tonnes (or 21%) decrease from 2009-10.

Households produced 14.3 million tonnes of waste (or 27% of total waste generated) in 2010-11, an increase from 12.4 million tonnes (or 23% of total waste generated) from a year earlier.




Waste management

There are three 'destinations' for Australia's waste: disposal to landfill; recovery for use in the domestic economy; and export.

Of the total waste generated in 2010-11, 30.8 million tonnes was recovered, which included 27.1 million tonnes recovered domestically and 3.7 million tonnes that was exported. Waste recovery (domestic and exports) increased from 52% of total waste generated in 2009-10 to 58% in 2010-11. Total waste to landfill decreased by 14% between 2009-10 and 2010-11 (from 25.9 million tonnes to 22.2 million tonnes).

Businesses and government provide waste management services that are used by other businesses, government and households. The monetary value of waste management services pertains to income from a range of services related to waste management, including collection, transport, recycling, treatment, processing or disposal of waste.

In 2010-11, the supply of these services was valued at $10.4b (including taxes), an 8% increase from 2009-10. Private waste management businesses (which include public trading enterprises) supplied just over half, $5.6b or 53%, of the value of these services, while local government authorities provided just over one quarter $2.7b, or 26%. The remaining $2.1b of waste management services was provided by businesses not primarily undertaking waste management, of which a large proportion (39% or $810m) were provided by the construction industry.

Waste management services are used by businesses in their production processes, or by households. In 2010-11, the waste management services industry consumed $3.2b, or 31%, of these services which was a slight increase from the year before ($2.9b, or 30%, in 2009-10). The construction industry was also a significant user of waste management services, consuming $1.8b or 18%. Households spent $1.9b on waste management services (recyclable and non-recyclable combined), mostly on municipal rates related to waste management services. Households’ share of total expenditure on waste management services remained unchanged at 18% between 2009-10 and 2010-11.



In 2010-11, 60% or $3.2b of the total value of waste products supplied to the economy were consumed domestically with the remainder exported. Of those recyclable/recoverable materials exported, metal was the most valuable material at $1.8b in 2010-11, which represented a 34% increase from a year earlier.

Not all waste that is produced has a negative value. Where the owner/discarder of the waste materials receives payment for the waste, it is termed a waste product (e.g. paper and scrap metal). The value of waste products supplied to the economy increased 18% from $4.5b in 2009-10 to $5.4b in 2010-11. The Waste management industry supplied about 53% of the value of these products in the form of sales of raw materials (e.g. paper, cardboard, metals, organic materials etc.) in 2010-11 (up from 48% in 2009-10). The remaining 47% of waste products were supplied by Mining ($327m, up 31% from 2009-10), Manufacturing ($741m, up 2% from 2009-10), Wholesale ($582m, up 6% from 2009-10) and Retail ($565m, up 3% from 2009-10), which combined made up 91% of this remaining income from sale of waste products.


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). The residence basis differs from the territory basis, which underpins estimates of GHG emissions produced in accordance with the United Nations Framework Convention on Climate Change (UNFCCC).

Total direct GHG emissions measured on a SEEA basis fell in every year from 2007-08 to 2010-11, before rising slightly in 2011-12. In the five-years to 2011-12 period, total GHG emissions fell 5% from 594.5Mt of CO₂ equivalent GHG emissions in 2007-08 to 566.9Mt in 2011-12. This decline can be largely attributed to the Agriculture industry which recorded a fall in emissions of 26.0Mt (or 20%) between 2007-08 (132.3Mt) and 2011-12 (106.2Mt). The Manufacturing industry also recorded a reduction in GHG emissions from 73.2Mt in 2007-08 to 66.3Mt in 2011-12 (i.e. a fall of 6.9Mt or 9%). Industries to increase their direct GHG emissions over the five-years to 2011-12 included Mining (up 15% to 66.0Mt), Transport (up 7% to 39.1Mt) and Construction (up 6% to 8.9Mt).



The Electricity, gas, water and waste services industry was the most significant contributor to direct GHG emissions per annum throughout the 2007-08 to 2011-12 period. In 2011-12, this industry produced 199.2Mt (or 35% of total direct GHG emissions) compared with 209.1Mt (or 35% of total direct GHG emissions) in 2007-08. Other significant contributors to total GHG emissions in 2011-12 were: Agriculture (which accounted for 19% of total GHG emissions, down from 22% in 2007-08); Manufacturing (which accounted for 12% of total GHG emissions, unchanged from 2007-08); and Mining (which accounted for 12% of total GHG emissions, up from 10% in 2007-08).

GHG emissions generated by Australian households increased 7% from 51Mt in 2007-08 to 55Mt in 2011-12. Over the same period, households’ share of total direct GHG emissions increased from 9% in 2007-08 to 10% in 2011-12.




CARBON STOCK ACCOUNTS


The graph below presents experimental estimates of carbon stocks in primary reservoirs in Australia. Carbon stock accounts report 239,581Mt of carbon stored in Australia’s geosphere. In comparison, 14,270Mt of carbon is stored as biomass carbon and 16,811Mt is stored as soil organic carbon.



The estimates of Australia’s carbon stocks are experimental and are limited to the primary reservoirs of geocarbon and biocarbon. Geocarbon relates to carbon in the geosphere, and in this publication is further limited to fossil fuel resources. Biocarbon relates to carbon in the biosphere and includes all biomass and soil organic carbon to a depth of 30 cm (100 cm for marine ecosystems) irrespective of ecosystem type and land/water use. At present, carbon stocks contained within the Australian economy (e.g. in concrete or in plastics) are not covered in the experimental estimates.


ENVIRONMENTAL TAXES


In 2012-13, Australian governments levied environmental taxes of $36.4b, an increase of $8.7b, or 32%, over the previous year. The primary cause of this increase is the introduction of the Carbon Pricing Mechanism ('carbon tax'), which came into operation on 1 July 2012.

Environmental taxes comprised 11% of total Australian tax revenue in 2012-13. In contrast, the previous decade saw the share of environmental taxes as a proportion of total tax revenue remain relatively constant at between 8 and 9%. Revenue from environmental taxes remained at around 2% of GDP throughout the 2003-04 to 2012-13 period.




Environmental taxes by type of tax

The most significant environmental tax in Australia is the excise duty on crude oil, LPG and petroleum products, accounting for 49% of total environmental taxes in 2012-13. Between 2004-05 and 2012-13, this category of environmental taxes increased from $13.5b to $17.8b, a rise of $4.3b, or 32%.

The Carbon Pricing Mechanism raised $6.5b in its first year of operation (2012-13). The scheme requires entities which emit 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) experienced the greatest percentage rise among all categories of environmental taxes between 2004-05 and 2012-13, increasing 2200% from $83m to $1,900m. Renewable energy targets (RETs) create a legal requirement for liable entities (typically electricity retailers) to purchase a set number of RECs and the observed increase in RECs is derived directly from changes to the schedule of RETs.




Environmental taxes paid by industry and households

The share of total environmental taxes paid by households was 23% in 2012-13, down from 28% the previous year. The fall in households' share of total environmental taxes was due to the introduction of the Carbon Pricing Mechanism, which is only levied on businesses. Despite this, the value of environmental taxes paid by households has risen 26% over the last decade, from $6.8b in 2003-04 to $8.5b in 2012-13.

Electricity, gas and water supply paid more environmental taxes than any other industry in 2012-13, contributing $7.1b or 20% of all environmental taxes (up from $2.4b or 9% in 2011-12). While this increase was primarily due to the industry’s contribution to the Carbon Pricing Mechanism, of which the industry paid 67% of the total (or $4.4b), a 68% year-on-year rise in motor vehicle purchases by Electricity, gas and water supply led to a commensurate increase in transport-related environmental taxes paid by this industry.

The Manufacturing industry made the second highest contribution to total environmental taxes; $6.6b in 2012-13, up 25% from $5.3b in 2011-12. The share of environmental taxes paid by the industry, however, decreased in the decade to 2012-13 from 25% in 2003-04 to 19% in 2012-13.

In contrast, the Mining industry increased its share of environmental taxes paid during this period from 5% (or $870m) in 2003-04 to 8% ($2,803m) in 2012-13. The 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. Construction also increased its share of total environmental taxes paid from 2% (or $362m) in 2003-04 to 4% (or $1,552m) in 2012-13.




ENVIRONMENTAL EXPENDITURE ACCOUNTS


The Environmental Expenditure Account (EEA) describes the resources allocated for preserving and/or protecting the environment by different categories of economic units as well as the financing of these resources and activities. Consistent with the System of Environmental-Economic Accounts (SEEA) framework, the purpose of the EEA is to provide a framework and structure to identify these environmental components within the key aggregates of the System of National Accounts (SNA). EEA results are experimental at this stage.

The graph below shows the production of environmental-specific services by the type of environmental service being supplied. Solid waste management services represented the largest share of total environmental services supplied within the Australian economy ($10.4b, or 33% of total environmental services in 2010-11, up 8% from $9.6b a year earlier). This was followed by waste water management ($6.1 billion, or 19% of total environmental services in 2010-11).



Experimental estimates of the use of environmental services by consumers within the Australian economy was valued at $28.5b (excluding capital formation) in 2010-11, an increase of 10% from 2009-10 ($25.9b). Australian industry consumed 75% (or $21.4b) of total environmental services in 2010-11, up from 74% (or $19.2b) in 2009-10. The largest industry consumers of environmental services were Construction ($3.9b in 2010-11, up 7% from $3.6b in 2009-10) and Electricity, gas, water supply, drainage and sewerage and waste ($3.4b in 2010-11, up 11% from $3.1b in 2009-10). Consumption of environmental services by households and general government increased by 8% between 2009-10 and 2010-11, from $6.6b to $7.1b.




LAND


Experimental land cover accounts have been compiled for Australia for the periods January 2001 to December 2002 and January 2010 to December 2011 using Geoscience Australia's Dynamic Land Cover, beta version (DLCv2). A 10 year time interval was selected as the rate of change in land cover is slow and the supporting data set remains in a testing phase. As such the information should be interpreted cautiously and with reference to the data custodians Geoscience Australia.

The map below presents land cover for the period January 2010 to December 2011, while the figure shows the changes between the periods January 2001 to December 2002 and January 2010 to December 2011. The total land area of Australia is approximately 7.7m km². Herbaceous cover was the most abundant land cover in Australia in 2010-11 accounting for 3.6m km² or 47% of all land cover, followed by Woody trees with 2.1m km² or 28% and Woody-shrubs with 1.2m km² or 15%. Irrigated or rainfed cultivated land together represented 0.6m km² or 8% of all land cover in January 2010 to December 2011. There was little change in the area of irrigated or rainfed cultivated land between January 2001 to December 2002 and January 2010 to December 2011. Woody-shrubs showed the greatest absolute increase between January 2001 to December 2002 and January 2010 to December 2011, growing by 0.4m km², while the area of Wetlands increased by 85% or from 18,159 to 33,360 km².



Changes in land cover have many potential drivers, including human activities and natural phenomena. The DLCv2 data presented here summarises many observations of the Earth's surface to provide a single dominant land cover class for each of the two year periods selected. There will be some level of land cover change within and between each two year layer of DLCv2 caused by various drivers. This intra-period and inter-period variation should be considered when interpreting the changes reported between the periods January 2001 to December 2002 and January 2010 to December 2011. Examples of human activities that drive land cover change include urban development, crop and pasture management and industrial activity. Natural drivers of land cover change include flood events, bushfires and seasonal climatic variation.





INQUIRIES

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1 The intensity indicators presented in this publication are described in the Glossary.<back
2 Productivity Commission, 2006, Inquiry Report No. 38.<back
3 Economically 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
4 Geoscience Australia – Trends in Australia's Economic Demonstrated Resources of Major Mineral Commodities http://www.ga.gov.au/products–services/publications/aimr/trends.html.<back
5 Geoscience Australia – Australia's Identified Mineral Resources 2012: Bauxite http://www.ga.gov.au/data-pubs/data-and-publications-search/publications/aimr/bauxite. <back
6 Table 5 of Australian System of National Accounts, 2012–13 (cat. no. 5204.0).<back