Power use drop leads to emission cut

A decline in manufacturing, the introduction of the carbon tax, decreased demand from consumers and use of renewable energy have all helped cut Australia's electricity emissions, according to a new report. Source: AFP

• Electricity emissions lowest since 2001-2002
• Coal-use being scaled back
• Price-war consumers also helped lower emissions

THE introduction of the carbon tax, power bill shock and a decline in manufacturing is all behind a drop in Australia's electricity greenhouse gas emissions to levels not seen for more than a decade, a report says.

The Climate Commission's report examining escalating global action on climate change, released today, reveals emissions from electricity generation in 2012 dropped by 4.7 per cent on the previous year.

And emissions from electricity hit the lowest levels seen since 2001-02 in the last six months of last year.

Coal-use is being scaled back as gas and green energy grows, with Australia nearly doubling its renewable energy capacity since 2001.

Other reasons behind the fall include price-conscience households and businesses cutting down on power use, an embracing of energy-saving equipment and a run on rooftop solar panels, which hit one million households last year.

A decline in demand for electricity was also partially driven by a decline in some manufacturing sectors, it said.

"The introduction of a carbon price in 2012 has also contributed to the shift away from coal."

Chief Climate Commissioner Professor Tim Flannery said GDP continued to grow while emissions "seem to have peaked".

"Fingers crossed we've turned the curve downwards."

Australia's experience came in the context of "a fundamental global shift" to renewable energy, Professor Flannery said.

The report found accelerating action on climate change worldwide, including by the world's biggest polluters, China and the US.

It notes China halved its growth in energy demand in 2012 as it invested US$65.1 billion in clean energy - a massive 30 per cent of the entire G20 nations' investment in the same year.

That was ahead of the introduction of seven emissions trading schemes this year crossing the country that would cover a quarter of a billion people and be the largest trading scheme on the planet.

Meanwhile, US emissions were declining and the country was second to China in investing in renewable energy, spending US$35.6 billion last year.

"The action is happening, the giants are moving, so if that's a sign for action, it should be all systems go in Australia," Professor Flannery said.

"The last nine months have seen the beginnings of a fundamental global shift, an irreversible shift towards renewable energy."

Thirty-five countries have emissions trading schemes and 98 countries have committed to limit their greenhouse gas emissions.

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