Quarterly Update of Australia's National Greenhouse Gas Inventory: March 2021 - Australia's National Greenhouse Accounts
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Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 Incorporating emissions from the NEM up to June 2021 Australia’s National Greenhouse Accounts Supporting economic growth and job creation for all Australians | industry.gov.au
© Commonwealth of Australia 2021 Ownership of intellectual property rights Unless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia. Creative Commons licence Attribution CC BY All material in this publication is licensed under a Creative Commons Attribution 4.0 International Licence, save for content supplied by third parties, logos, any material protected by trademark or otherwise noted in this publication, and the Commonwealth Coat of Arms. Creative Commons Attribution 4.0 International Licence is a standard form licence agreement that allows you to copy, distribute, transmit and adapt this publication provided you attribute the work. A summary of the licence terms is available from https://creativecommons.org/licenses/by/4.0/ The full licence terms are available from https://creativecommons.org/licenses/by/4.0/legalcode Content contained herein should be attributed as Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021, Australian Government Department of Industry, Science, Energy and Resources. Disclaimer The Australian Government as represented by the Department of Industry, Science, Energy and Resources has exercised due care and skill in the preparation and compilation of the information and data in this publication. Notwithstanding, the Commonwealth of Australia, its officers, employees, or agents disclaim any liability, including liability for negligence, loss howsoever caused, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data in this publication to the maximum extent permitted by law. No representation expressed or implied is made as to the currency, accuracy, reliability or completeness of the information contained in this publication. The reader should rely on their own inquiries to independently confirm the information and comment on which they intend to act. This publication does not indicate commitment by the Australian Government to a particular course of action. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 2
Preface The Quarterly Update provides estimates of Australia’s national inventory of greenhouse gas emissions up to the March quarter of 2021, and preliminary estimates of emissions for the year-to- June quarter 2021. Emissions for the year to March 2021 are estimated to be 494.2 Mt CO2-e, down 5.3% or 27.8 Mt CO2-e on the previous year. This decline in emissions reflects: • ongoing reductions in emissions from electricity (down 5.6%); • reductions in fugitive emissions (down 8.3%) due, in part, to a reduction in coal production and increases in carbon capture and storage over the year (at Chevron’s Gorgon project on Barrow Island, W.A.), despite operational issues in the March quarter; and • the impact of COVID restrictions throughout the year on emissions from transport (down 13.2%). Since their peak in the year to June 2007, Australia’s greenhouse gas emissions have declined 23.4%. The emissions in the year to March 2021 are the lowest levels recorded in the National Inventory and were 20.8% below emissions for the year to June 2005 (Figure P1). Figure P1: Emissions 12, by quarter, March 2000 to March 2021 (including preliminary June 2021) 170 160 150 Emissions (Mt CO2-e) 140 130 120 110 100 90 Actual emissions Trend Source: Department of Industry, Science, Energy and Resources On a quarterly basis, national emission levels for the March quarter 2021 increased 0.3% or 0.4 Mt CO2-e on the previous quarter, in trend terms. Transport emissions increased 5.2% (1.2 Mt CO2-e), recovering from the deepest impacts of COVID-related restrictions while there were also increases in Fugitive emissions of 5.8% (0.7 Mt CO2-e) on the last quarter. These increases were offset by 1 ‘Actual’, ‘seasonally adjusted, ‘weather normalised’ and ‘trend’ are defined in Section 5 - Technical notes 2 National emissions levels are inclusive of all sectors of the economy, including Land Use, Land use Change and Forestry (LULUCF) and includes the application of the IPCC’s natural disturbance provision. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 3
decreases in Electricity (2.0% or 0.8 Mt CO2-e), Industrial Processes and Product Use, Agriculture and Waste. In the year to March 2021, emissions per capita and the emissions intensity of the economy were at their lowest levels in 31 years. Emissions per capita were lower than 1990 by 47.8% while the emissions intensity of the economy was 66.2% lower than in 1990. On an annual basis, the consumption-based inventory decreased 2.8% or 12.0 Mt CO2-e to 415.1 Mt CO2-e in the year to March 2021. Emissions associated with production of exports declined by 12.5 Mt CO2-e (down 5.3%) to 221.9 Mt CO2-e and emissions associated with consumption of imports increased by 3.2 Mt CO2-e (up 2.3%) to 142.8 Mt CO2-e. Overall, national emissions are preliminarily estimated to be 500 Mt CO2-e in the year to June 2021, a decrease of 2% on the previous year. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 4
Contents Preface .................................................................................................................................................... 3 1. Overview ......................................................................................................................................... 6 2. Sectoral Analysis ........................................................................................................................... 11 2.1. Energy – Electricity ................................................................................................................. 11 2.2. Energy – Stationary energy excluding electricity ................................................................... 13 2.3. Energy – Transport ................................................................................................................. 14 2.4. Energy – Fugitive emissions.................................................................................................... 16 2.5. Industrial processes and product use..................................................................................... 16 2.6. Agriculture .............................................................................................................................. 17 2.7. Waste...................................................................................................................................... 18 2.8. Land Use, Land Use Change and Forestry .............................................................................. 19 3. Emissions per capita and per dollar of GDP .................................................................................. 20 4. Consumption-based national greenhouse gas inventory ............................................................. 22 Special Topic - Using new satellite technologies to provide quality assurance for Australia’s national greenhouse gas inventory..................................................................................................................... 24 Special Topic – Australia’s national inventory for methane and carbon dioxide net emissions: 1860- 2020 ...................................................................................................................................................... 36 5. Technical notes ............................................................................................................................. 42 6. Related publications and resources .............................................................................................. 54 Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 5
1. Overview Table 1: National Greenhouse Gas Inventory 3, March quarter 2021, rates of change March quarter Year to March 2021 2021 Quarterly change – seasonally adjusted and weather normalised 4 0.7% Quarterly change – seasonally adjusted and weather normalised – trend4 0.3% Annual Change -5.3% Table 2: National Electricity Market (NEM) 5, June quarter 2021, rates of change June quarter 2021 Year to June 2021 Quarterly change – seasonally adjusted and weather normalised4 4.7% Quarterly change – seasonally adjusted and weather normalised – trend4 0.8% Annual Change -4.6% Summary of emissions in the March quarter 2021 National emissions for the March quarter 2021 increased 0.3% or 0.4 Mt CO2-e on the previous quarter in trend terms. Transport emissions increased in trend terms (5.2% or 1.2 Mt CO2-e), reflecting the easing of COVID travel restrictions during that period. Stationary energy and fugitive emissions both increased in trend terms in the March quarter 2021 (0.7% and 5.8% respectively). Electricity continued its decline (2.0% or 0.8 Mt CO2-e, trend) as a result of rising generation from renewable energy. 3 National emissions levels are inclusive of all sectors of the economy, including Land Use, Land Use Change and Forestry (LULUCF). 4 ‘Actual’, ‘seasonally adjusted, weather normalised’ and ‘trend’ are defined in Section 5: Technical notes 5 The NEM includes grid electricity in the Eastern and South Eastern states and accounts for approximately 83% of total electricity estimates in the year to March 2021. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 6
Figure 1: Emissions 6, by quarter, March 2010 to March 2021 160 150 Emissions (Mt CO2-e) 140 130 120 Actual emissions Seasonally adjusted and weather normalised Trend Source: Department of Industry, Science, Energy and Resources Figure 2: Change in emissions, by quarter, March 2010 to March 2021 4% 2% Quarterly change in emissions (%) 0% -2% -4% -6% -8% Seasonally adjusted and weather normalised Trend Source: Department of Industry, Science, Energy and Resources 6 ‘Seasonally adjusted’, ‘weather normalised’, and ‘trend’ are defined in Section 5: Technical notes Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 7
Emissions of individual gases Carbon dioxide (CO2) emissions contribute the largest share of aggregate emissions in Australia at approximately 69% of total emissions. Since the peak in September 2008, there has been a 30.0% or 36.2 Mt decline in emissions of carbon dioxide to 84.4 Mt in March 2021 (Figure 3). The most important factors causing this long term decline in carbon dioxide emissions include the continuing shift in the generation of electricity towards renewable fuel sources, and away from coal, and decreasing emissions in the Land sector. Against these downward forces, the long term growth of emissions from transport activity and the expansion of LNG exports have placed upward pressure on this time series. Methane (CH4) emissions contribute approximately 25% aggregate emissions in Australia. Overall CH4 emissions have declined by 20.2% since the peak in September 1989. Trends in methane emissions are dominated by events in Agriculture such as drought, Fugitives related to coal, oil and gas production levels, Land and Waste sectors. Nitrous oxide (N2O) emissions contribute around 4% of aggregate emissions in Australia. Overall N2O emissions have declined by 15.0% since the peak in September 2011. Trends in N2O emissions are sensitive to events in the Agriculture sector such as synthetic fertilizer use and biomass burning in the Land sector. Other gases comprising HFC, PFC and SF6 contribute the balance of total aggregate emissions. Growth in emissions of other gases primarily driven by consumption of refrigerants in refrigeration and airconditioning equipment. Figure 3: Emissions, by quarter, by gas, trend, March 2000 to March 2021 CO2 CH4 120.0 1.4 110.0 1.4 100.0 Emissions (Mt CO2) 1.3 90.0 Emissions (Mt CH4) 1.3 80.0 70.0 1.2 60.0 1.2 50.0 1.1 40.0 1.1 30.0 20.0 1.0 March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 March 2010 March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 March 2010 March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 0.03 N2O 3.0 Other (CO2-e) 2.5 0.02 Emissions (Mt CO2-e) Emissions (Mt N2O) 2.0 0.02 1.5 0.01 1.0 0.01 0.5 - - March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 March 2010 March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 March 2000 March 2001 March 2002 March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 March 2010 March 2011 March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 March 2018 March 2019 March 2020 March 2021 Source: Department of Industry, Science, Energy and Resources Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 8
Summary of annual GHG emissions Emissions for the year to March 2021 are estimated to be 494.2 Mt CO2-e. The 5.3% or 27.8 Mt CO2-e decrease in emissions over the year to March reflects annual decreases in emissions from the electricity, stationary energy (excluding electricity), transport, fugitives, industrial processes and waste sectors. These decreases in emissions were partially offset by increases in emissions from the agriculture and land use, land use change and forestry sectors (Table 3). Table 3: Actual annual emissions, by sector, for the year to March 2020 and 2021 Sector Annual emissions (Mt CO2-e) Annual emissions (Mt CO2-e) Change (%) year to March 2020 year to March 2021 173.8 164.1 -5.6 Energy – Electricity Energy – Stationary energy excluding 102.4 100.9 -1.5 electricity Energy – Transport 99.6 86.5 -13.2 Energy – Fugitive emissions 54.2 49.7 -8.3 Industrial processes and product use 30.8 30.6 -0.8 Agriculture 72.4 73.6 1.7 Waste 13.4 13.2 -1.3 Land Use, Land Use Change and Forestry -24.7 -24.5 1.1 National Inventory Total 521.9 494.2 -5.3 Figure 4: Share of total emissions, by sector, for the year to March 2021 40% Electricity 35% 33.2% 30% Stationary energy excluding electricity 25% 20.4% Transport 20% 17.5% Agriculture 14.9% 15% Fugitive emissions Industrial 10.0% processes and 10% product use 6.2% Waste 5% 2.7% 0% -5% LULUCF -10% -4.9% Source: Department of Industry, Science, Energy and Resources Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 9
Over the year to March 2021 the 5.6% decrease in emissions from the electricity sector was mainly due to a 4.4% reduction in coal generation, a 23.9% reduction in gas generation and a corresponding 11.4% increase in supply from renewable sources in the NEM. Transport emissions decreased 13.2% over the year to March, reflecting an 11.6% decrease in petrol consumption and a 58.3% decrease in domestic jet fuel consumption related to the COVID restrictions on movement. Emissions from the agriculture sector increased 1.7% to 73.6 Mt CO2-e, reflecting improving conditions in the sector. Emissions in Australia from export industries decreased 5.4% (10.9 Mt CO2-e). In the year to June 2021, the preliminary estimate for total emissions is 500 Mt CO2-e. This would be a decline of 2% or 12 Mt CO2-e on the year to June 2020. Long term sectoral trends The most important sectoral drivers of Australia’s long-term emissions trend have been: • Electricity – where emissions have fallen by 22.5% since June 2009, as renewables have displaced coal as a fuel source, reversing the long term increases experienced in earlier years; • Stationary energy (excluding electricity) – which has shown the largest growth of any sector in percentage terms since 1990. Emissions have increased 52.5% or 34.7 Mt CO2-e driven, in particular, by recent growth in the export of LNG; • Transport - where emissions have increased 41.0% or 25.2 Mt CO2-e since 1990, despite recent volatility due to the impacts of the COVID pandemic; • Fugitives – where emissions have increased 25.9% or 10.2 Mt CO2-e since 1990. Emissions were relatively stable until 2015 but have increased strongly as a result of the growth of the LNG industry; • Agriculture – where emissions have declined by 20.0% or 18.4 Mt CO2-e since 1990, in line with declining cattle and sheep populations; and, • Land Use, Land Use Change and Forestry (LULUCF) – where emissions have decreased by the largest margin of any sector since 1990 (112.6% or 218.1 Mt CO2-e) due to reductions in land clearing and native forest harvesting and improvements in soil carbon. The changes in emissions from each sector from the year to June 1990 to 2021 in percentage terms are presented in Figure 5. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 10
Figure 5: Percentage change in emissions, by sector, since year to March 1990 80% Electricity 60% Per cent change in emissions on 1990 (%) Stationary energy 40% excluding electricity 20% Transport 0% -20% Fugitive emissions -40% Industrial -60% processes and product use -80% Agriculture -100% Waste -120% -140% LULUCF Source: Department of Industry, Science, Energy and Resources 2. Sectoral Analysis 2.1. Energy – Electricity Electricity generation is the largest source of emissions in the national inventory, accounting for 33.2% of emissions in the year to March 2021 (Figure 4). Electricity sector emissions are experiencing a long term decline, down 22.5% (47.5 Mt CO2-e) from the peak recorded in the year to June 2009 (Data Table 1A). Electricity sector emissions decreased 2.1% in the March quarter of 2021 on a seasonally adjusted and weather normalised basis 7 (Figure 6). This reflected a 4.4% decline in coal generation and a consequent increase of 11.4% in renewable generation. The March quarter 2021 saw metered demand in the NEM higher by 2.2% than in the December quarter 2020. Over the course of the whole year to March 2021, emissions from electricity decreased 5.6% compared with the year to March 2020, due to the ongoing substitution of renewable energy sources for coal-fired power. 7 Two adjustments are made: a) Seasonal adjustment is a first-order adjustment using Eurostat software that systematically corrects emissions data for average fluctuations in seasonal conditions which, for example, controls for the effects of two seasonal peaks in electricity demand: one in winter (associated with demand for heating) and one in summer (associated with demand for cooling); and b) Weather normalisation is a second-order adjustment that systematically corrects emissions data for atypical temperature effects on electricity demand within the year which, for example, controls for the effects of unusually cold winters or unusually hot summers. The weather normalisation methodology is described in detail in ‘Section 7: Special Topic’ of the December 2011 Quarterly Update Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 11
Figure 6: Electricity sector emissions, by quarter, March 2010 to March 2021 56 54 Emissions (Mt CO2-e) 52 50 48 46 44 42 40 38 Actual emissions Seasonally adjusted and weather normalised emissions Source: Department of Industry, Science, Energy and Resources, Australian Energy Market Operator (AEMO, 2021), obtained using NEM- Review software National Electricity Market (NEM) emissions Emissions in the NEM for the June quarter 2021 increased 4.7 % on a seasonally adjusted and weather normalised basis compared with the previous quarter (Figure 7). Figure 7: NEM electricity emissions, by quarter, June 2010 to June 2021 48 46 44 Emissions (Mt CO2-e) 42 40 38 36 34 32 30 Actual emissions Seasonally adjusted and weather normalised emissions Source: Department of Industry, Science, Energy and Resources, Australian Energy Market Operator (AEMO, 2021), obtained using NEM- Review software For the June 2021 quarter, generation from renewables increased 0.1% in trend terms (Figure 8). Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 12
Figure 8: Cumulative change in electricity generation in the NEM, trend, by fuel, by quarter, June 2010 to June 2021 6 4 Electricity Generation (TWh) 2 Coal 0 Gas -2 -4 Wind -6 Hydro -8 Solar -10 Source: Department of Industry, Science, Energy and Resources, Australian Energy Market Operator (AEMO, 2021), obtained using NEM- Review software 2.2. Energy – Stationary energy excluding electricity Stationary energy excluding electricity includes emissions from direct combustion of fuels, predominantly from the manufacturing, mining, residential and commercial sub-sectors. In the year to March 2021, stationary energy excluding electricity accounted for 20.4% of Australia’s national inventory (Figure 4). Emissions from stationary energy excluding electricity in the March quarter of 2021 increased 0.7% (0.2 Mt CO2-e) in trend terms compared with the December quarter. Emissions over the year to March 2021, decreased 1.5% in trend terms when compared with the previous year (Figure 9). Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 13
Figure 9: Stationary energy excluding electricity emissions, actual and trend, by quarter, March 2010 to March 2021 34 29 Emissions (Mt CO2-e) 24 19 14 9 4 Stationary energy excluding electricity - Actual Stationary energy excluding electricity - Trend Source: Department of Industry, Science, Energy and Resources Figure 10: LNG exports, by quarter, March 2010 to March 2021 20 15 Exports (Million tonnes) 10 5 0 Source: Department of Industry, Science, Energy and Resources 2.3. Energy – Transport The transport sector includes emissions from the direct combustion of fuels in transportation by road, rail, domestic aviation and domestic shipping. The main fuels used for transport are automotive gasoline (petrol), diesel oil, liquefied petroleum gas (LPG) and aviation turbine fuel. In the year to March 2021, transport accounted for 17.5% of Australia’s national inventory (Figure 4). Emissions in the March 2021 quarter increased 5.2% in trend terms on the December quarter 2020 recovering some of the declines experienced in the March and June quarters of 2020 (Figure 11). Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 14
This result reflects some degree of a return towards normal levels of transport activity following the most severe impacts from the restrictions on movement imposed in the June quarter 2020. Emissions from transport over the year to March 2021 decreased 13.2% when compared with the previous year. This decline in transport emissions was partly the result of an 11.6% annual decline in petrol consumption associated with the impacts of the COVID pandemic. In contast, diesel consumption declined by 2.2% over the same period (Figure 12). Figure 11: Transport emissions, actual and trend, by quarter, March 2010 to March 2021 28 27 26 Emissions (Mt CO2-e) 25 24 23 22 21 20 19 18 Transport - actual Transport - Trend Source: Department of Industry, Science, Energy and Resources Figure 12: Consumption of primary liquid fuels, actual and trend, by quarter, March 2010 to March 2021 8,000 7,500 Consumption (Million Litres) 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 Petrol Diesel Petrol - Trend Diesel - Trend Source: Department of Industry, Science, Energy and Resources Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 15
2.4. Energy – Fugitive emissions Fugitive emissions occur during the production, processing, transport, storage, transmission and distribution of fossil fuels. These include coal, crude oil and natural gas. Emissions from decommissioned underground coal mines are also included in this sector. Fugitive emissions in the March quarter increased 5.8% in trend terms. Total gas and LNG production were unchanged in the March 2021 quarter. Reduced underground carbon dioxide injection at the Gorgon project and the restart of Prelude caused an increase in fugitive emissions from the crude oil and natural gas sub-sector. Coal production grew by 5.3% in the March 2021 quarter, contributing to the overall increase in fugitive emissions after the decrease in December 2020. Annual emissions in this sector decreased 8.3% in actual terms over the year to March 2021 (Figure 13). Figure 13: Fugitive emissions, actual and trend, by sub-sector, by quarter March 2010 to March 2021 10 8 Emissions (Mt CO2-e) 6 4 2 0 Coal - actual emissions Crude oil and natural gas - actual emissions Coal - trend Crude oil and natural gas - trend Source: Department of Industry, Science, Energy and Resources 2.5. Industrial processes and product use Emissions from industrial processes and product use occur as the result of by-products of materials and reactions used in production processes. This sector includes emissions from processes used to produce chemical, metal, and mineral products. It also includes emissions from the consumption of synthetic gases. In the year to March 2021, industrial processes and product use accounted for 6.2% of Australia’s national inventory (Figure 4). Emissions declined 0.8% or 0.3 Mt CO2-e over the year to March 2021 (Figure 14) partly reflecting declines in emissions from the chemicals sector. Trend emissions for industrial processes and product use decreased 0.2% in the March quarter on the previous quarter. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 16
Figure 14: Industrial processes and product use emissions, actual, by sub-sector, by quarter, March 2010 to March 2021 4.0 Chemical industry 3.5 3.0 Products substituted for Emissions (Mt CO2-e) 2.5 Ozone Depleting Substances 2.0 Metal industry 1.5 1.0 Mineral industry 0.5 0.0 Other production and lubricant use Source: Department of Industry, Science, Energy and Resources 2.6. Agriculture Emissions from agriculture include methane, nitrous oxide and carbon dioxide. Methane and nitrous oxide emissions are estimated for enteric fermentation and manure management in livestock. They are also estimated for rice cultivation, agricultural soils and field burning of agricultural residues. Carbon dioxide emissions are reported from the application of urea and lime. In the year to March 2021, agriculture accounted for 14.9% of Australia’s national inventory (Figure 4). Emissions from agriculture increased 2.1% (1.5 Mt CO2-e) in trend terms over the year to March 2021 (Figure 15). Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 17
Figure 15: Agriculture emissions, trend, by quarter, March 2010 to March 2021 8 24 22 Emissions (Mt CO2-e) 20 18 16 14 12 10 8 Source: Department of Industry, Science, Energy and Resources Drought conditions have eased in the March quarter 2021. More favourable seasonal conditions have led to herd and flock rebuilding, however, livestock population numbers are yet to fully recover 9. There has been some rebound in crop production in the March quarter 2021 due to more favourable climatic conditions. Emissions from crop production should continue to increase in future quarters, with wheat production forecast to rebound strongly 10. 2.7. Waste The waste sector includes emissions from landfills, wastewater treatment, waste incineration and the biological treatment of solid waste. Emissions largely consist of methane, which is generated when organic matter decays under anaerobic conditions. In the year to March 2021 2020, waste accounted for 2.7% of Australia’s national inventory (Figure 4). Emissions from waste decreased 1.3% (0.2 Mt CO2-e) over the year to March 2021 due to increased gas capture at solid waste disposal sites (Figure 16). 8 The nature of the data underpinning the agriculture estimates creates an anomaly in the actual quarterly data which is managed through seasonal adjustment and weather normalisation (Data Tables 1B and 1C). 9 Australian Bureau of Agricultural and Resource Economics and Sciences (2021). Agricultural Commodities Report, June 2021. 10 Australian Bureau of Agricultural and Resource Economics and Sciences (2021). Australian Crop Report, June 2021. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 18
Figure 16: Waste emissions, actual, by sub-sector, by quarter, March 2010 to March 2021 4.0 3.5 3.0 Emissions (Mt CO2-e) 2.5 2.0 1.5 1.0 0.5 0.0 Solid waste disposal on land Wastewater handling Waste incineration and biological treatment of solid waste Source: Department of Industry, Science, Energy and Resources 2.8. Land Use, Land Use Change and Forestry The Land Use, Land Use Change and Forestry (LULUCF) sector of the national inventory includes estimates of net anthropogenic emissions for forests and agricultural lands and changes in land use. In the year to March 2021, the LULUCF sector 11 accounted for -4.9% of Australia’s national inventory – a net sink (Figure 4). Net emissions for the LULUCF sector in the year to March 2021 are estimated to be -24.5 Mt CO2-e (Figure 17). This net sink has declined by 1.1% (0.3 Mt CO2-e) on the previous twelve months due to an increase in emissions from agricultural soils, partially offset by a continuing decline in land clearing emissions (Figure 17). 11 LULUCF includes Forest converted to other uses, Forest land remaining forest land, Land converted to forest land, Grassland remaining grassland (including Wetlands and Settlements) and Cropland remaining cropland. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 19
Figure 17: LULUCF net anthropogenic emissions, by sub-sector, year to March, 1990 to 2021 200 Forest land remaining forest land 150 Cropland remaining Emissions (Mt CO2-e) 100 cropland 50 Grassland remaining grassland (including Wetlands and Settlements) 0 Land converted to forest -50 -100 Forest converted to other uses Year to March Source: Department of Industry, Science, Energy and Resources 3. Emissions per capita and per dollar of GDP In the year to March 2021, emissions per capita, and the emissions intensity of the economy are at their lowest levels in 31 years 12. National inventory emissions per capita were 19.2 t CO2-e per person in the year to March 2021. This represents a 47.8% decline in national inventory emissions per capita from 36.9 t CO2-e per person in the year to March 1990. Over the period from March 1990 to March 2021, Australia’s population grew strongly from 17.0 million to around 25.7 million 13,14. This represents a growth of 51.3%. Australia’s real GDP (chain volume measures) also experienced significant growth over this period, expanding from $0.8 trillion in the year to March 1990 to around $1.9 trillion in the year to March 2021 15. This represents a growth of 134.9%. National inventory emissions per dollar of real GDP fell from 0.8 kg CO2-e per dollar in the year to March 1990 to 0.3 kg CO2-e per dollar in the year to March 2021 (Figure 18). This represents a decline of 66.2% from the year to March 1990. 12 Emissions per capita and per dollar of real GDP levels are inclusive of all sectors of the economy, including Land Use, Land Use Change and Forestry (LULUCF) 13 Australian Bureau of Statistics (2021), Australian Demographic Statistics, pub. no. 3101 http://www.abs.gov.au/ausstats/abs@.nsf/mf/3101.0 14 Australian Bureau of Statistics (2021), Population Clock. http://www.abs.gov.au/AUSSTATS/abs@.nsf/Web+Pages/Population+Clock 15 Australian Bureau of Statistics (2021), National Accounts: National Income, Expenditure and Product, Cat. No. 5206.0 http://www.abs.gov.au/ausstats/abs@.nsf/mf/5206.0 Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 20
Figure 18: Emissions per capita and per dollar of real GDP, actual year to March 1990 to 2021 38 0.80 36 0.75 34 0.70 32 30 0.65 kg CO2-e per $ of real GDP 28 0.60 t CO2-e per person 26 0.55 24 0.50 22 20 0.45 18 0.40 16 0.35 14 0.30 12 10 0.25 8 0.20 Year to March Emissions per capita Emissions per dollar of real GDP Source: Department of Industry, Science, Energy and Resources Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 21
4. Consumption-based national greenhouse gas inventory Table 4: Consumption-based national greenhouse gas inventory 16, March quarter and year to March 2021, emissions growth rates March quarter Year to March 2021 2021 Quarterly change – seasonally adjusted 17 -0.4% Quarterly change – seasonally adjusted– trend -1.3% Annual Change -2.8% The consumption account estimates the impacts on emissions in Australia and in other countries due to Australian consumption or demand. On an annual basis, the consumption-based inventory decreased 2.8% or 12 Mt CO2-e to 415.1 Mt CO2 e in the year to March 2021, largely as a result of a 27.8 Mt CO2 e decline in national greenhouse gas inventory emissions (down 5.3%). Emissions associated with production of exports declined by 12.5 Mt CO2 e (down 5.3%) and emissions associated with consumption of imports increased by 3.2 Mt CO2 e (up 2.3%). Emissions in the national greenhouse gas inventory associated with the production of goods for export are not included in the consumption-based inventory. The national greenhouse gas inventory is increasingly driven by producing goods for exports. After deducting these emissions, national greenhouse gas inventory emissions that are associated with domestic consumption declined by 5.3 per cent (16.8 Mt CO2-e). Emissions generated by Australian consumption are 146.5 Mt CO2-e or 26.1% lower compared to the year to June 2005. The analysis also shows that the emissions generated to support Australia’s consumption are less than those reported as the (production-based) national greenhouse gas inventory by 79.1 Mt CO2-e or 16% in the year to March 2021 (Figure 19). On a seasonally adjusted basis, Australia’s consumption-based inventory was lower relative to the previous quarter (0.4% or 0.4 Mt CO2-e). Consumption-based emissions are approximately 16.2 tonnes per person per year, which is around 3.1 tonnes per person less than the per capita emission calculation using the national greenhouse gas inventory. 16 National emissions levels are inclusive of all sectors of the economy, including Land Use, Land Use Change and Forestry (LULUCF). 17 ‘Actual’, ‘seasonally adjusted and ‘trend’ are defined in Section 5: Technical notes Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 22
Figure 19: National Greenhouse Gas and Consumption-based inventories, Australia, by quarter, March 2005 to March 2021 Source: Department of Industry, Science, Energy and Resources Figure 20: Global emissions generated during production of Australia’s imports and exports, by quarter, March 1990 to March 2021 Source: Department of Industry, Science, Energy and Resources Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 23
Special Topic - Using new satellite technologies to provide quality assurance for Australia’s national greenhouse gas inventory The newly introduced capacity to monitor and map concentrations of greenhouse gases from space using instrumentation aboard European Space Agency (2017) and NASA (2014) satellites offers the prospect of the development of important, new quality-assurance systems in support of the National Greenhouse Accounts. Methane The IPCC observes that data on regional greenhouse gas mixing ratios taken from instruments on board satellites offers a new approach to provide independent, quality assurance for national inventories. Quality assurance systems are especially important for methane emissions since many sources are difficult to estimate given the highly variable and often diffuse nature of the source. Major sources of anthropogenic methane include leaks from gas systems, disturbed coal seams, fire, wetlands, landfills, wastewater and livestock but there are also dispersed, non-anthropogenic sources such as from natural wetlands, wild animals and termites, natural seeps, and natural disturbances such as out-of-control bushfire. The IPCC’s 6th Assessment Report on Climate Change, released on 9 August, provides a map of estimated methane emissions for regions of the world drawing on satellite data and inverse modelling techniques. Figure ST 1: IPCC Assessment of regional methane emissions Source: IPCC (2021) cross-chapter Box 5.2. In Australia, the strongest concentration of methane emissions are most likely in the Sydney-Hunter Valley and Melbourne areas with lesser concentrations in the Bowen Basin and Cooper Basin areas. More generally, livestock is the biggest source of methane in Australia but, as it is widely dispersed, it does not show as an intense concentration on these maps. Concentrations of methane emissions in Melbourne and Sydney could be attributed to the city gas distribution networks – and this is Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 24
consistent with the national inventory, which identifies distribution networks as the biggest source of methane leaks in Australia’s gas supply system. In addition, in the case of Sydney, coal mines in the Illawarra, which are the gassiest mines in Australia and, to a lesser extent, mines in the Hunter Valley would be large contributors. The European Space Agency Sentinel 5P mission houses a measuring instrument, known as TROPOMI, which is estimating methane mixing ratios (concentrations) in the air column below the satellite on a 7km by 5km grid as it circulates the globe - around 14 times a day. Data from the Sentinel 5P mission is shared with Australia under agreement with the Australian Space Agency and managed by the ESA’s partner in Australia, GeoScience Australia. As an initial pilot, the Department has accessed this data to the map methane mixing ratios observed over the Bowen and Surat Basins in Queensland, where methane concentrations might be expected to occur. Figure ST 2: Average methane mixing ratios identified from satellite data (ppb) (Panel a) and major methane emission sources identified in the national inventory (Panel b); Bowen and Surat Basins, 2019-20 Panel a Panel b Source: DISER analysis of Sentinel 5P methane mixing ratios; national greenhouse gas inventory The national inventory data (Figure ST 2, Panel b) indicate that the largest emission point-sources in the region relate to the Bowen Basin coal mines, with lesser emission point-sources in the Surat Basin associated with CSG developments. Significant emissions also arise from wastewater and landfill. The largest diffuse sources relate to cattle and water. The Bowen Basin shows more intense methane concentrations than the Surat and this is to be expected from the national inventory. Almost twice as much methane is emitted from the Bowen Basin as the Surat Basin, according to data underpinning the national inventory (Table ST 1) and around 3 times more than the Surat Basin when estimated on a per hectare basis. Overall, the pattern described by the national inventory aligns reasonably well with the data on the intensity of methane mixing ratios observed from the Sentinel 5P satellite data. Conceptually, there will always be a gap between these two sets of data which means that they should be compared only with caution. (i) Panel a shows methane concentrations whereas Panel b Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 25
shows emission sources – to relate the two requires a pollution dispersion model as the emission plumes will be dispersed depending on meteorological conditions 18. (ii) The timing of the recording of methane emissions also varies. The satellite will see methane releases instantaneously while the inventory records estimated methane emissions on an annual basis such that, for a process with highly variable release profiles, as is the case for many methane sources, the two datasets will differ. (iii) The inventory data do not show all methane sources – only anthropogenic sources that are reported in the national inventory – while satellite data in Panel a will reflect all sources of methane, including non-anthropogenic sources. Care also needs to be taken in interpreting the datasets since, as explained below, the satellite data on mixing ratios (Panel a) will be significantly less reliable in certain locations (and this is the case, as shown in Figure ST 3, in and around parts of the Bowen Basin). Table ST 1: Estimated methane emissions, Bowen and Surat Basins, 2019, 2020 IPCC Source Methane emissions (tonnes) Bowen Basin & coast 857,000 + National Inventory sources Coal mining 525,000 Gas supply IE Fuel Combustion 7,000 Cattle 260,000 Feedlots 10,000 Water 30,000 Wastewater 4,000 Landfill 10,000 Landclearing (fire) 3,600 Prescribed burning and wildfire 8,900 Other sources (freshwater, wild animals, termites, natural seeps and disturbances) Not estimated Surat Basin & coast 505,000 + National Inventory sources coal mining IE Gas supply 85,000 Fuel Combustion 46,000 Cattle 205,000 Sheep 10,000 Pigs 18,000 Feedlots 35,000 Water 27,000 Wastewater 14,000 18 For example, in calm conditions, the emission plumes will tend to concentrate overhead of the source whereas in breezy conditions the plume will be dispersed more quickly. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 26
IPCC Source Methane emissions (tonnes) Landfills 38,000 Landclearing (fire) 5,100 Prescribed burning and wildfire 25,500 Other sources (freshwater, wild animals, termites, natural seeps and disturbances) Not estimated Source: DISER analysis of national inventory data NGA Methane Monitoring System The Department intends to build on this work systematically by establishing a National Greenhouse Account Methane Monitoring System. The new quality assurance program will utilise daily methane concentration data across Australia from the ESA satellite Sentinel 5P to identify emerging methane concentrations and to provide systematic quality assurance for national inventory estimates. The satellite system will complement other quality assurance work on methane. In DISER 2021, the national inventory methods for methane were shown to work well when tested against methane fluxes recorded by flux towers located in the Surat Basin and analysed by the CSIRO. Methane emissions in the Surat Basin have also been tested using equipment on board aviation flyovers (Neininger et al 2021, forthcoming)), in work sponsored by the UN Environment Program, and which will show that the estimated plume plotted during those flyovers was largely consistent with the collection of inventory methods used for the Surat Basin. Inverse modelling of methane emissions Beyond the purpose of quality assurance systems, some researchers are beginning to explore the use of satellite data on methane mixing ratios in adjacent locations to make estimates of methane fluxes. This new, greenfields (‘top-down’) development work offers the potential for long term benefits to greenhouse gas inventories – however, in the view of the IPCC 19, the application of the satellite data to the quantification of emissions from particular point sources is premature at this stage. Making reliable, ‘top-down’ estimates of emissions from the satellite data on methane mixing ratios has a high degree of difficulty for a number of reasons, set out below. The data on methane mixing ratios from the satellite can be unreliable in some locations and under certain conditions. This is known because the European Space Agency itself discards 80-90% of all potential observations and does not accept the data over water, over clouds or in cases of very low albedo. There are other complications as well, relating to the presence of aerosols, light and rough terrain. For some of these variables, thresholds for acceptance of data are applied to ‘minimise errors’. For particular locations, data obtained on some orbits will sometimes be valid, and sometimes the data will not, depending on the conditions. In general, outside the flat, cloud-free, 19 “Use of satellite observations in inverse modelling for anthropogenic emission estimates is still in the experimental stage, due to multiple technical challenges of producing the high-quality concentration retrievals from the satellite-observed spectra” (IPCC 2019). Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 27
dust free desert-like landscapes Figure ST 2 in yellow, mainly), there is room for further examination of the reliability of the data. Figure ST 3: Count of the number of valid observations, sentinel 5P, methane mixing ratios, for the year, 2019 Source: Lavaux et al 2021. Sentinel-5P coverage for Level 2 XCH4 data product in 2020. The value of each pixel corresponds to the number of days for which Sentinel-5P provided at least one valid (after quality filtering) measurement, for the corresponding area during year 2019. Note that 80 is a hard threshold set for clarity; some pixels exceed this value (Credits: Map tiles by Carto, under CC BY 3.0. Data by 846 OpenStreetMap, under ODbL) Ground-truthing and lack of precision The ground-truthing of the core dataset on methane mixing ratios is limited. In Australia, the TROPOMI algorithm was tested against methane measurements made at two TCCON 20 stations – Wollongong and Darwin. The small number of ground-truthing stations for the satellite data in Australia risks biases and a level of imprecision in the instrument estimates. • Imprecision: - at the TCCON station at Wollongong, the bias in the initial readings from the TROPOMI instrument was reported to be -19.6ppb with a standard deviation of ±14.9ppb (Lorente et al 2021). • Bias corrections: - after 2 years, corrections to the operational data have been applied, as reported by Lorente et al 2021, but a residual bias of -7.7ppb at the Wollongong station remains with a standard deviation of ±13.3 ppb. Instrument and modelling errors • Instrument errors: – the instrument sometimes produces bias for strips of pixels along the orbital path that need to be controlled for. • Topography: – the calculations work best where there is smooth topography. Many local maxima in the methane mixing ratios appear to coincide with ridge tops, while many areas of high variability of observations coincide with areas of rough terrain. In Figure ST 4, areas of high variations in recorded methane mixing ratios from pixel-to-pixel appear as chequer- board-like areas - these areas tend to coincide with areas of rough terrain. In Figure ST 5 and Figure ST 6, many of the highest readings appear to coincide with the mountainous peaks in the region. 20 Total Carbon Column Observatory Network Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 28
• Aerosols: – some high readings appear to coincide with locations of high levels of aerosols. The presence of dust makes analysis of open-cut coal mines quite different to, for example, a leak from a gas pipeline, which has been a recurring topic of study by researchers (Lavaux et al 2021). • Albedo: – areas of low and high albedo are the ‘most challenging’ for the TROPOMI instrument (Lorente et al 2021). Both of these types of situation are present in the Bowen Basin in close proximity – in part due to topography, as the coastal facing mountain range is lush while the western facing part of the mountain ranges are much drier. Consequently, the Bowen Basin is one region in the world where the bias correction employed for the TROPOMI algorithm has had both increased and decreased estimates on different pixels within the same region – widening the dispersion of estimates in the region – but where considerable uncertainty remains. • Scattered light: – heterogeneity of the albedo readings for a given scene or pixel is a problem for the instrument to assess over the 40km2 of one pixel. As indicated in Hasekamp 2019, the TCCON stations at Wollongong and Darwin have among the widest range of albedo readings of any station in the TCCON network (in the top 5 in the world) indicating that this scattering of albedo could be a problem in many coastal and mountainous area of Australia, like parts of the Bowen Basin, for a satellite with relatively low resolution like Sentinel 5P. Sampling errors • Data selection: – the number of observations made available from the satellite instrument is restricted in cases of low albedo (over water); low atmospheric quality due to clouds or aerosols or from rough terrain. Around 80-90% of potential satellite observations are not usable and restricts the global coverage of this satellite. Within Australia, these limitations restrict available observations to moments of clear blue skies which is a restriction that potentially biases the available dataset. • Sampling errors over time: – extrapolation from a small number of observations, given the amount of data discarded, could be problematic for such a highly variable source as methane. • Sampling errors over space: - at some locations there are less observations available due to cloud, albedo or aerosol conditions and could be problematic for some under-sampled locations. Modelling methane fluxes • Plume identification: – the identification of a plume is underpinned by the estimation of the change in the methane mixing ratios across adjacent pixels. The imprecision of the TROPOMI instrument at Wollongong, however, when applied to flux estimates, leads to a cascading of uncertainty for estimated changes in the methane mixing ratio from one pixel to another. This means that a certain, significant level of statistical uncertainty is present around the detection of any plume. • Upwind bias: - the estimation of areas upwind from major sources in the Bowen Basin is complicated by the presence of rough terrain and areas of low albedo, which risks biasing estimates of upwind methane. • Understanding of meteorological conditions: – extrapolation of a snapshot in time on wind conditions throughout the day(s) introduces uncertainties over the extent and origin of methane detections in a plume. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 29
• Incomplete modelling of local maxima: – the level of confidence in any proposed explanation for any identified point source is diminished while there are unexplained methane maxima more generally in the dataset. Several of the highest maxima for Queensland, for example, apparently originate from the rugged terrain around the Zamia State Forest (Figure ST 6). Other maxima occur to the west of Queensland without any obvious source. • Attribution: – attributing observed plumes to particular point sources is difficult with low resolution data - every pixel reading covers around 40 square kilometres, which will contain many sources of methane in most situations: from coal to cattle; from waste to water; and include many, diffuse non-anthropogenic sources like freshwater, wild animals, termites and the like. Figure ST 4: Methane mixing ratios, with topography, 2019-20 Source: DISER analysis of Sentinel 5P data. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 30
Figure ST 5: Comparison of satellite data for estimated methane, topography Source: DISER analysis of Sentinel 5P data. Stars are locations of the highest readings December 2019 – June 2020 shows a preponderance of the highest readings on rough terrain. Figure ST 6: Highest methane mixing ratios, 18 July 2020 Source: DISER analysis. https://www.queensland.com/au/en/things-to-do/attractions/p-56b25e9aaeeeaaf773cf0f67-lake-elphinstone. Maximum two per cent readings for methane-mixing ratio, 18 July, (LHS) on the Kerlong range, above Lake Elphinestone (RHS) (the lake is around 7km from the Hail Creek mine). The instrument is known to not work so well with rough terrain and clouds. These issues are not new ones to the inverse modelling community – addressing these questions satisfactorily, however, will take time. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 31
More ground-truthing and verification of the satellite data is necessary to improve precision, especially in the Southern Hemisphere. This could be done, for example, using aviation flyovers, which sample the methane plumes more intensely, and which could yield valuable information about the quality of the satellite data. More openness about methods applied is necessary. Studies should be repeatable and replicable by others. Overall, like the IPCC, the Department believes that it is premature to use satellite data to quantify emissions from methane sources. Nevertheless, such methods show enough promise to be developed into quality assurance systems for methane sources more generally. Developing robust systems will take time, dialogue and transparency in method development. While the Department remains cautious about the risks of over-interpretation of the data by researchers, in light of the new information coming forward the Department intends to review inventory methods for methane in the coming inventory cycles. In particular, the Department intends to review methods in relation to the application of default factors for fuel combustion by reciprocating gas engines; for the estimation of fugitive emissions from open cut coal mines and from wastewater from industrial sources. Carbon dioxide Like methane, regional concentrations of carbon dioxide are being measured from space - in this case by the NASA OCO-2 mission, launched in 2014. Analysis by NASA indicates that the largest sources of net carbon dioxide emissions derive from the Amazon, sub-saharan Africa, East and South-East Asia and Europe (see Figure ST 7, yellow regions). Other regions, like Australia, are blue, which NASA ascribes to the presence of a strong carbon dioxide sink. Figure ST 7: NASA OCO-2 mission, regional concentations of carbon dioxide 2015-2018 Source: NASA 2019 https://climate.nasa.gov/news/2915/the-atmosphere-getting-a-handle-on-carbon-dioxide/ The IPCC, in its 6th Assessment Report on Climate Science, surveyed a broader set of instrument data and, using inverse modelling techniques, presents data that is suggestive of a large land sink in Australia. Consistent with the IPCC analysis, the Global Carbon Project (Ciais et al 2021), which estimates the major forces at work in the global carbon cycle, also estimates the sink on Australia’s Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 32
lands to be substantial as does Harris et al 2021, applying remote sensing techniques to satellite imagery to document the greening of many areas of the world. In the last National Inventory Report, the Department estimated a net sink for the land sector of around 20Mt of carbon dioxide. This small estimate reflects historical decisions on inventory development that focussed on understanding the trend in net emissions across the land caused by explicit management actions that disturb the forest, or by other disturbances, rather than the precise magnitude of any net sink on Australia’s lands. On two occasions, due to a lack of information on trends in these sinks, the Department has taken decisions to set aside from the inventory previously identified sequestration processes – one relating to the process of vegetation thickening (at the time, estimated at around 12Mt a year) and one relating to the sequestration of carbon by not–yet-mature native forests (at the time, estimated at around 18Mt a year). In light of the broad evidence on the size of the carbon sink in Australia provided by the analysis of the IPCC and from NASA satellite data, new inventory development work is being undertaken now to revisit the modelling of these sequestration processes in order to improve the reconciliation between the ‘bottom-up’ inventory modelling and ‘top-down’ science models based on mass balance approaches. · Vegetation thickening in Australia’s woodlands – support was provided in the 2019 Budget for development of methods for Australia’s woodlands. As part of this initiative, the CSIRO is estimating a new approach to the modelling of carbon accumulation in Australia’s woodlands that will link biomass to woody canopy cover estimates and which will allow the tracking of carbon accumulation for these processes of thickening (and, at times, degradation). · Age structure of Australian harvested forests - in conjunction with the States, new method development is focussed on the implementation of spatial estimation systems for stocks in harvested native forests in FullCAM, drawing on spatial information on past harvesting rates and the spatial determination of the age of trees in native forests, with likely increases in carbon sequestration compared with current estimates. An initial specification was reached for New South Wales and Victoria in the 2021 NIR submission. The 2022 work program will incorporate refinement of the work on New South Wales and Victoria and new estimates for Tasmania. · Forest sinks – the work of the IPCC indicates that forests have been absorbing increased amounts of carbon over time (see also Haverd et al 2013). These impacts are not currently captured for the Australian inventory, unlike in inventories for the European Union and the United States, where there is greater availability of direct measurement approaches in forests. Internationally, there is also greater political acceptance of broader approaches to the estimation of sinks. In Europe, for example, the EU’s new Climate Neutrality law promotes the use of the complete range of sinks in the EU’s accounting (Article 4) compared with the more, limited activity-based approach provided for in the EU’s current KP-style accounting approaches. In light of the above, the Department intends to undertake method developments to the FullCAM modelling approach in future inventory cycles to promote greater comparability of the Australian inventory with the inventory methods utilised by other countries in their reporting, including the European Union and the United States. Quarterly Update of Australia’s National Greenhouse Gas Inventory: March 2021 33
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