Australia's National Greenhouse Gas Inventory 1990, 1995 and 1999, End Use Allocation of Emissions

Report to the Australian Greenhouse Office
George Wilkenfeld & Associates Pty Ltd and Energy Strategies, 2003

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Contents and Abbreviations
Appendix A - Energy system emissions and coefficients
Appendix B - Sector, State and end use
Appendix C - Transport
Appendix D - Agriculture
Appendix E - Sectoral aggregates

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Summary

Australia's National Greenhouse Gas Inventory (NGGI) reports greenhouse gas emissions and sinks according to the Intergovernmental Panel on Climate Change (IPCC) sectors: energy, industrial processes, solvents, agriculture, land use change and forestry, and waste. This structure simplifies emissions estimation and ensures consistency between the emissions reporting of the various signatories to the United Nations Framework Convention on Climate Change.

However, the IPCC structure was not developed for the purpose of enabling emissions to be directly linked with economic activities. Hence emissions from electricity generation, the largest component of the NGGI, are attributed to the power generation subsector and not to the mining, manufacturing, commercial or residential end use sectors which consume the electricity.

In order to understand the significance of different end use sectors of our economy and to assist in the development and tracking of greenhouse gas reduction measures, the Australian Greenhouse Office commissioned an end use allocation analysis of the 1990, 1995 and 1999 National Greenhouse Gas Inventories.

Allocations of emissions

The end use allocation analysis involves integrating the energy and non-energy emissions related to a particular economic activity.

To allocate energy emissions to the point of end use it is necessary to develop fuel cycle (FC) coefficients. The FC coefficients combine the direct fuel combustion emissions with the fugitive and combustion emissions associated with energy production, refining and transport. Energy emissions are calculated by multiplying the energy consumption in each end use category by the relevant emission factor or FC coefficient.

Total emissions connected with an end use are calculated by aggregating energy emissions with the emissions associated with specific industrial processes, the biosphere (agriculture, forestry and land use change), landfill and waste water.

This report allocates the emissions from the NGGI to the following major end use categories in the Australian economy. These largely correspond to the Australian and New Zealand Standard Industrial Classification (ANZSIC) divisions:

agriculture, forestry and fishing (ANZSIC Division A);
non-energy mining (e.g. iron ore);
mining of energy for export (e.g. coal);
manufacturing (corresponding to ANZSIC Division C, with the exception that emissions relating to the production of energy for domestic use are subtracted and absorbed in the FC coefficients);
construction (ANZSIC Division E) and water, sewerage and drainage (i.e. that part of ANZSIC Division D [electricity, gas and water] not absorbed in the FC coefficients);
commercial and institutional (corresponding to ANZSIC Divisions F-H, J-Q);
residential, including emissions from energy used by passenger vehicles when travelling to and from work, and when travelling for private purposes; and
other.

The sum of both mining divisions correspond to ANZSIC Division B, with the exception that emissions relating to the production of energy for domestic use are subtracted and absorbed in the FC coefficients. The 'other' category includes emissions from solvent combustion, military energy use, freight and passenger transport energy that cannot be categorised, and emissions from land use change that cannot be allocated to agriculture.

Rather than treating transport as an end use sector in its own right, freight transport emissions, as far as possible, have been allocated to end use sectors according to the type of load carried.

End use sector emissions

Figure S1 shows the end use emissions allocated into the industry classifications described above. The agriculture, forestry and fishing end use sector accounted for the largest share of emissions in all three years, followed by the manufacturing and residential sectors. Emissions from livestock production and land use change (the biosphere) account for the majority of agriculture, forestry and fishing sector emissions.

Figure S1 Emissions by end use sector and source.

Stationary energy accounts for most emissions in the mining, manufacturing and commercial sectors. It also accounts for the majority of residential sector emissions, although the contribution of private use of passenger vehicles is also significant (approximately 35%, 37% and 33% in 1990, 1995 and 1999 respectively).

The full end use emission allocations are summarised in Tables S1, S2 and S3.

Table S1 Allocation of emissions to end use sectors (1990).
End use sector	Stationary energy	Transport energy	Industrial process	Biosphere^c	Waste	Total	Share of total
	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(%)
Agriculture, forestry and fishing	6 273	5 060	-	172 183	-	183 515	36.5
Mining: non-energy	8 444	2 698	-	-	-	11 142	2.2
Mining: export energy	16 394	749	-	-	-	17 142	3.4
Manufacturing	104 865	5 656	12 010	-	5 873	128 403	25.5
Construction, water, etc	4 679	2 813	-	-	1 958	9 450	1.9
Commercial/institutional	32 041	871	-	-	3 023	35 935	7.1
Residential^a	51 211	31 083	-	-	4 433	86 727	17.2
Other^b	5 908	19 982	-	5 094	-	30 984	6.2
Total	229 815	68 912	12 010	177 277	15 286	503 299	100.0

**Table S2** Allocation of emissions to end use sectors (1995).
End use sector	Stationary energy	Transport energy	Industrial process	Biosphere^c	Waste	Total	Share of total
	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(%)
Agriculture, forestry and fishing	6 932	5 470	-	127 094	-	139 496	29.1
Mining: non-energy	9 790	2 520	-	-	-	12 309	2.6
Mining: export energy	23 053	787	-	-	-	23 840	5.0
Manufacturing	107 902	6 291	9 696	-	6 062	129 952	27.1
Construction, water, etc	4 988	3 492	-	-	2 021	10 501	2.2
Commercial/institutional	36 568	552	-	-	3 118	40 239	8.4
Residential^a	53 331	35 613	-	-	4 568	93 512	19.5
Other^b	5 619	21 475	-	2 964	-	30 058	6.3
Total	248 182	76 200	9 696	130 058	15 770	479 905	100.0

**Table S3** Allocation of emissions to end use sectors (1999).
End use sector	Stationary energy	Transport energy	Industrial process	Biosphere^c	Waste	Total	Share of total
	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(Gg CO₂-e)	(%)
Agriculture, forestry and fishing	7 621	6 559	-	130 566	-	144 746	27.6
Mining: non-energy	12 801	2 464	-	-	-	15 265	2.9
Mining: export energy	25 382	733	-	-	-	26 115	5.0
Manufacturing	116 258	7 238	10 409	-	6 327	140 231	26.8
Construction, water, etc	5 684	4 018	-	-	2 109	11 812	2.3
Commercial/institutional	46 536	670	-	-	3 254	50 460	9.6
Residential^a	62 827	34 777	-	-	4 766	102 370	19.5
Other^b	5 400	24 681	-	2 914	-	32 995	6.3
Total	282 509	81 140	10 409	133 480	16 456	523 993	100.0

(a) Includes travel to and from work and travel for private purposes by PMVs.
(b) Includes combustion of solvents, military energy use, unallocated freight and passenger transport and land use change not allocated to agriculture.
(c) Biosphere includes agriculture and land use change and forestry sector emissions and removals.

The residential sector showed the largest absolute increase in sectoral emissions over the period 1990 to 1999 (15 643 Gg CO₂-e) but the largest percentage increases were in mining of energy for export (52.3%)-largely due to the increase in the production of coal and liquefied natural gas (LNG) for export, and in the commercial and institutional sectors (40.4%) (see Table S4). Agriculture, forestry and fishing was the only sector to show a reduction in emissions (21.1%), due largely to the decline in land use change emissions.

**Table S4** Change in allocated emissions by sector (1990 to 1999).
Land-use sector	Change			Change in emissions	Annualised change rate
	1990-1995	1995-1999	1990-1999	1990-1999	1990-1999
	(%)	(%)	(%)	(Gg CO₂-e)	(%)
Agriculture, forestry and fishing	-24.0	3.8	-21.1	-38 769	-2.6
Mining: non-energy	10.5	24.0	37.0	4 123	3.6
Mining: export energy	39.1	9.5	52.3	8 972	4.8
Manufacturing	1.2	7.9	9.2	11 828	1.0
Construction, water, etc	11.1	12.5	25.0	2 361	2.5
Commercial/institutional	12.0	25.4	40.4	14 525	3.8
Residential^a	7.8	9.5	18.0	15 643	1.9
Other^b	-3.0	9.8	6.5	2 011	0.7
All sectors (total NGGI)	-4.6	9.2	4.1	20 694	0.4
Source: Derived from Tables S1, S2 and S3.

Subsector and commodity emissions

Emissions can be allocated at a finer level for some subsectors of agriculture, manufacturing and construction. This allocation does not capture emissions from solid waste produced by the subsectors, or energy use in the agricultural subsectors, because there are no data on allocations. Even so, nearly 90% of the sector emissions can be allocated in this way. Of the selected subsectors, beef cattle and basic non-ferrous metals are estimated to produce the highest emissions (Figure S2).

Figure S2 Emission from selected end use subsectors by source (1999).

For those agricultural and manufacturing subsectors where the output is predominantly a single commodity the emissions intensity of the commodities (emissions produced per tonne of product) has been estimated (Table S5). Between 1990 and 2000, there have been reductions in the emissions intensity of most commodities. The greatest improvement was in beef production due to the reduction of land use change emissions.

**Table S5** All sources emissions intensity for selected commodities.
Commodity	Emissions intensity (tonnes CO₂-e/tonne of commodity produced)
	1990	1995	1999
Wheat^a	0.7	0.4	0.4
Other grains^a	0.7	0.5	0.4
Sugar^a	0.2	0.2	0.2
Wool^a	18.7	19.0	18.1
Beef^a	79.9	58.8	51.7
Sheep meat^a	14.6	15.0	14.4
Pig meat^a	3.9	3.6	3.6
Cement, lime, etc^b	1.0	0.9	1.0
Steel	3.6	3.1	3.1
Aluminium	23.4	21.4	20.0
Other non-ferrous^b	18.9	20.3	17.2
Source: Appendix E

(a) Excludes energy.
(b) Average for all products in group-not enough data to disaggregate.

As many of Australia's commodities are exported, the 'export' share of emissions associated with the production of commodities has been calculated. In 1990 exports accounted for 61% of the commodity emissions, rising to 65% in 1999 (Table S6). These export-related emissions accounted for 32% of total national greenhouse gas emissions in 1990, falling to 29% in 1999.

This analysis does not give a complete picture of international 'flows' of emissions, because it excludes a range of factors that would increase the estimate of the 'export' share of emissions, (e.g. the export of finished good manufactured from locally consumed commodities such as processed food and motor vehicles). It also excludes 'imported' emissions. Although Australia does not import large quantities of commodities whose production is emissions-intensive, it does import a large quantity of finished products made from emission-intensive commodities. Extensive analysis would be required to trace the countries of origin and estimate the emissions associated with such products. Indeed, given the increasing trade in commodities, semi-finished goods and components worldwide, it is doubtful whether such an analysis could be carried out.

**Table S6** Emissions attributable to commodities: local use and exported.
	1990			1995			1999
	Total	Percent exported	Export	Total	Percent exported	Export	Total	Percent exported	Export
	(Gg CO₂-e)	(%)	(Gg CO₂-e)	(Gg CO₂-e)	(%)	(Gg CO₂-e)	(Gg CO₂-e)	(%)	(Gg CO₂-e)
Wheat	9 592	80	7 683	6 285	74	4 677	7 775	76	5 895
Other grains	4 657	43	2 006	4 082	41	1 682	3 913	45	1 766
Sugar	680	76	517	721	82	595	839	79	661
Wool	19 259	94	18 144	12 992	90	11 688	11 580	91	10 496
Beef	138 888	61	85 027	101 116	64	65 058	102 888	65	66 663
Sheep meat	9 446	40	3 764	8 660	46	3 968	8 941	50	4 497
Pig meat	1 238	59	725	1 280	62	790	1 301	63	815
Steel	24 209	26	6 305	24 503	38	9 223	23 693	42	10 043
Aluminium	28 924	76	22 015	27 528	81	22 322	33 660	81	27 252
Energy mining	28 940	57	16 394	36 312	63	23 053	41 105	62	25 382
All of above	265 834	61	162 579	223 479	64	143 055	235 695	65	153 470
Balance	237 465	-	-	256 426	-	-	288 298	-	-
Total emissions	503 299	32	162 579	479 905	30	143 055	523 993	29	153 470
Source: Appendix E

Emission indicators

The report also links end use greenhouse gas emissions to economic output. It is possible to do this at the subsectoral level for emissions related to stationary energy use (Tables S7 and S8) but for all emissions sources it is only possible to do this at the broad sectoral level (Table S9).

Subsectors

Between 1990 and 1999 stationary energy-related emissions per million dollar gross value added (GVA) declined by 4.0% in the manufacturing sector as a whole.
There were significant increases in emissions intensity in metal products (16.3%) and machinery, equipment and other (16.9%).
There were significant reductions in emissions intensity in food, beverages and tobacco (-15.1%) and non-metallic mineral products (-11.4%). The apparent reduction in the chemical subsector is inconclusive, since a large part of the emissions in that subsector are incorporated in the petroleum fuels coefficient.
Stationary energy-related emissions per million dollar GVA increased by 4.8% in the commercial sector.
There were significant increases in emissions intensity in accommodation and cultural services (20.6%) wholesale and retail trade (16.1%) and government administration and defence (12.9%).
The greatest reduction in emissions intensity was in the communication subsector (-38.3%). Although absolute emissions increased by 42%, gross valued added increased by nearly 130%, more than twice as much as the next highest growing subsector (finance, etc).

These changes could be related to a wide range of factors including:

structural change (i.e. a shift of economic output between activities and products of inherently different energy intensity);
fuel substitution (i.e. a shift between fuels of inherently different conversion efficiency such as petroleum products and gas);
changes in the emissions-intensity (the 'coefficient') of electricity and gas supply; and
changes in end use efficiency.

It is not possible to establish the contribution of each of these factors without a detailed analysis that is beyond the scope of the present study.

**Table S7** Stationary energy (FC) emissions per million dollar gross value added (GVA) by manufacturing subsector.
	Emisssions intensity (t CO₂-e/$M GVA^a)			Change 1990-1999
	1990	1995	1999	(%)
Food, beverages, tobacco	689	719	584	-15.1
Textiles, clothing, footwear	751	826	803	6.9
Wood, paper and printing	665	597	612	-7.9
Chemicals	1 620	1 104	1 102	-32.0
Non-metal mineral products	2 968	3 017	2 630	-11.4
Metal products	5 066	5 343	5 891	16.3
Machinery, equipment and other	230	269	269	16.9
All manufacturing	1 627	1 619	1 561	-4.0

(a) Chain volume measure, reference 1998/99

Table S8 Stationary energy (FC) emissions per million dollar GVA by commercial subsector.
	Emisssions intensity (t CO₂-e/$M GVA^a)			Change 1990-1999
	1990	1995	1999	(%)
Wholesale and retail trade	259	282	301	16.1
Communication	126	90	78	-38.3
Finance, etc	69	71	73	4.9
Govt, admin, defence	255	248	288	12.9
Education and health	119	107	118	-1.2
Accommodation, cultural	147	155	177	20.6
All commercial	157	156	164	4.8

(a) Chain volume measure, reference 1998/99

Sectors

Table S9 summarises the emissions indicators for the four main end use sectors, taking into account all emission sources that can be allocated: stationary energy, transport, industrial process, agriculture, land use change and forestry, and waste.

The highest emissions per million dollars GVA was in agriculture (42 times the level in the commercial sector in 1999), although there was a 40.5% reduction between 1990 and 1999 in the agriculture sector.
Emissions per million dollars GVA were similar for mining and manufacturing sectors, although the former increased by 8.7% and latter declined by 5.8%. Emissions per million dollars GVA increased by 1.9% in the Commercial sector.

Table S9 All source emissions per million dollars GVA.
	Emisssions intensity (t CO₂-e/$M GVA)			Change 1990-1999
	1990	1995	1999	Emissions per $M GVA (%)
Agriculture, etc^a	11 553	9 356	6 877	-40.5
Mining^b	1 429	1 503	1 553	8.7
Manufacturing	1 816	1 768	1 711	-5.8
Commercial	162	158	165	1.9

(a) Agriculture, forestry and fishing.
(b) Excludes emissions from mining of fuels for local use, which are absorbed in other sectors, but includes emissions from production of export fuels.

States and Territories

Energy-related emissions (both stationary and transport) have been allocated to States and Territories (the Australian Capital Territory has been combined with New South Wales due to data limitations). It was not possible to allocate non-energy emissions to States/Territories. Energy-related emissions per million dollars of gross State product (GSP) fell considerably in Tasmania, New South Wales, Australian Capital Territory, Victoria and South Australia, but changed little in the jurisdictions where emissions increased the most-Queensland, Western Australia and the Northern Territory (Table S10).

**Table S10** Energy-related (FC) emissions per million dollars GSP.
	Greenhouse gas emissions (t CO₂-e/$M GSP)^a			Change 1990-1999
	1990	1995	1999	(%)
NSW+ACT^b	644	578	537	-16.6
VIC	658	608	600	-8.8
QLD	765	784	757	-1.0
SA	625	667	596	-4.7
WA	734	781	736	0.3
TAS	474	400	364	-23.3
NT	755	808	765	1.3
Australia (GDP)	677	651	611	-9.8

(a) Emissions include transport; GSP is chain volume measure, reference 1998/99
(b) Cannot be disaggregated due to data limitations.

Emissions per capita increased in all jurisdictions except New South Wales and the Australian Capital Territory, and Tasmania (Table S11). In the latter case, the reduction was due to the emergency use of fuel for electricity generation in 1990, which was discontinued once hydro storage levels recovered.

**Table S11** Energy-related (FC) emissions per capita.
	Greenhouse gas emissions (t CO₂-e/capita)^a			Change 1990-1999
	1990	1995	1999	(%)
NSW+ACT^b	17.8	16.9	17.8	-0.2
VIC	17.8	17.2	19.3	8.3
QLD	17.3	19.3	20.7	19.7
SA	14.6	15.7	16.2	10.7
WA	19.6	24.1	25.1	27.6
TAS	9.9	8.7	8.5	-13.3
NT	22.7	24.1	25.6	13.2
Australia	17.5	18.0	19.2	9.7

(a) Emissions include transport.
(b) Cannot be disaggregated due to data limitations.

Energy end use analysis

The report also analyses the emissions associated with stationary energy use by various end use activities (e.g. space heating) and equipment types (e.g. electric motors) (see Figure S3). Transport sector emissions are also shown for comparison.

Figure S3 Energy emissions (FC) by end use activity (1999).

Published by the Australian Greenhouse Office
© Commonwealth of Australia 2002
ISBN: 1 876536 82 9 (volume 1)
ISBN: 1 876536 17 9 (volume 2)

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