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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VOLUME 1

• SUMMARY
  
• ABBREVIATIONS
  1. INTRODUCTION
     
  2. FUEL CYCLE COEFFICIENTS
     
  3. ENERGY (NON-TRANSPORT)
     
  4. TRANSPORT
     
  5. AGRICULTURE, LIVESTOCK AND FORESTRY
     
  6. INDUSTRIAL PROCESSES AND WASTE
     
  7. END USE ALLOCATION
     
  8. ENERGY END USE ANALYSIS
• GLOSSARY
  
• REFERENCES

VOLUME 2

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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• Volume 2 (endusereport-volume2.pdf - 1097 KB)

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.

(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.

(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.

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.

(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.

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.

(a) Chain volume measure, reference 1998/99

(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.

(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).

(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.

(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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Editing and design: Themeda
Photos: Arthur Mostead
Printing: Union Offset