🚗 Transport emissions are falling in Australia, thanks to EVs

🚗 Transport emissions are falling in Australia, thanks to EVs

Australia's transport emissions fell for the second consecutive year outside the pandemic, driven by growing EV sales and lower petrol consumption. The country's total greenhouse gas emissions dropped 2.1 percent in 2025 and are now 24.5 percent below 2005 levels.

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  • Australia's transport emissions fell for the second consecutive year outside the pandemic, driven by growing EV sales and lower petrol consumption.
  • The country's total greenhouse gas emissions dropped 2.1 percent in 2025 and are now 24.5 percent below 2005 levels.
  • EVs have grown from less than four percent of new vehicle sales in 2022 to more than 20 percent in the first four months of 2026.

New figures from Australia's National Greenhouse Gas Inventory show that the country's transport emissions may have reached their peak. Transport emissions fell 0.6 percent in 2025, from 101.5 million tonnes of CO2-equivalent in 2024 to 100.8 million tonnes. It is the second consecutive annual decline, excluding the disruptions caused by the COVID pandemic.

Australia's Department of Climate Change, Energy, the Environment and Water says the result could indicate that transport emissions are approaching, or may already have passed, their peak.

Petrol consumption fell three percent

The decline was driven largely by a three percent drop in petrol consumption over the year. Climate Change and Energy Minister Chris Bowen points to the growing share of EVs as part of the explanation.

According to Bowen, EVs have grown from less than four percent of new light vehicle sales in 2022 to more than 20 percent in the first four months of this year. He highlights the country's New Vehicle Efficiency Standard, which gives Australians more fuel-efficient vehicles to choose from.

The inventory covers emissions through December 2025. This means the sharp rise in EV sales in early 2026 is not yet reflected in the transport statistics. That increase coincided with high global oil prices, which accelerated interest in EVs and plug-in hybrids.

Total emissions fell 9.7 million tonnes

Australia's overall greenhouse gas emissions decreased 2.1 percent in 2025, to 458.9 million tonnes of CO2-equivalent. That equals a reduction of 9.7 million tonnes. Reductions were recorded across electricity generation, transport, stationary energy, fugitive emissions, agriculture and waste.

The country's emissions are now 24.5 percent below 2005 levels.

Record renewable electricity

The electricity sector remains Australia's largest source of emissions, but it also delivered some of the biggest reductions. Emissions from electricity generation fell 3.8 percent over the year, as renewable energy generation reached record levels. Renewables accounted for 43.2 percent of generation in the National Electricity Market.

Battery storage played an increasingly important role. Battery discharge in the electricity market almost tripled during 2025. This reduced gas-fired generation during evening peaks by around 30 percent.

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