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Part D Reducing Australia’s emissions – opportunities and challenges

In considering Australia’s emissions reduction goals, it is important to understand the outlook for domestic emissions, and how different sectors of the economy might contribute to meeting those goals. It is also important to understand the broader options, including the potential role of international emissions reductions.

As outlined in Chapter 10, Australia’s emissions are projected to rise in the period to 2020 and beyond in the absence of strong policy drivers. Australia faces a substantial but achievable task to meet the 2020 targets being considered. Whichever 2020 target Australia adopts, using a mix of international and domestic emission reductions could help reduce the cost.

Part D presents a range of outlooks for Australia’s emissions and emissions reduction efforts.

Chapter 12 focuses on Australia’s domestic emissions outlook, at both an economy-wide and sectoral level. It describes opportunities for domestic emissions reductions in an environment of continued economic growth and rising international demand for Australian resource and agricultural exports. It builds on the understanding of historical changes in emissions and how Australia has progressed to date (described in Chapter 7), drawing on The Treasury and DIICCSRTE modelling scenarios. It outlines the emissions reduction opportunities that underpin the Authority’s economic analysis of different targets (discussed in Chapter 10). It also identifies Australia’s principal challenges to reducing emissions within the domestic economy.

Chapter 13 discusses using international emissions reductions to contribute to meeting Australia’s emission reduction goals, including the associated risks and benefits. It considers the potential sources and volumes of international units available to Australia.