Environment at a Glance: Australia
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Australia is the world's sixth largest country by land area and has the third-largest ocean territory. It is also the driest inhabited continent. Steady economic growth, except during the COVID-19 pandemic, has helped improve living standards for a growing population. The economy is service based but highly resource-intensive, reflecting extensive extraction and use of metal ores and fossil energy materials, and low population density.
The continent is relatively flat, with the world’s lowest average elevation. It is endowed with a wide range of natural resources, including abundant energy resources: fossil fuels such as coal, natural gas and oil, renewables such as wind, solar, geothermal, wave, tidal and biomass, and uranium. It also has significant other metal and mineral resources including aluminium, iron, gold, copper, nickel, zinc and mineral sands.
Australia is a megadiverse country, hosting around 10% of global biodiversity and a high share of endemic species. Its ecosystems range from tropical wetlands and rainforests to eucalypt forests, a central desert and coral reefs, including the Great Barrier Reef. While it is among the world’s less densely populated countries, most Australians live in dense urban areas on the eastern, southeastern and southwestern coasts. Environmental responsibilities are shared between the Commonwealth government, six states, two territories, and more than 560 municipalities.
Australia has significantly raised its climate ambitions, recently announcing, in its 2035 Nationally Determined Contribution, the target of reducing emissions by 62-70% with respect to 2005 levels – and setting the goal of reaching net zero emissions by 2050. Additionally, Australia signed up to the Global Methane Pledge in 2022, joining 130 governments who are collectively targeting a reduction in methane emissions of at least 30% by 2030 across all sectors.
However, the net zero commitment requires a faster trajectory and increased efforts in energy efficiency and renewable energy (IEA, 2023[1]). Australia has reached relative decoupling of energy supply and production-based carbon dioxide (CO2) emissions during the past two decades, and more recently, an absolute decoupling, with production-based CO2 emissions having decreased since 2019. With growth rising beyond 40% of electricity generation in 2025, Australia is underway to deliver on its target of 82% renewable electricity by 2030.
The per person production-based (i.e. produced within the territory) and demand-based (or footprint, i.e. including emissions incorporated in imported goods) greenhouse gas (GHG) emissions have declined since 1990, with decline rates accelerating from 2006. Due to its mining sector and use of fossil fuels, they remain well above the OECD averages. Since 2014, demand-based emissions are lower than production-based ones, meaning that Australia is a net exporter of GHG emissions embodied in final demand (i.e. demand for goods and services by all residents). On the other hand, as highlighted in the 2025 OECD Climate Action Monitor, Australia has achieved the largest increase in climate action between 2023 and 2024, for example by including waste in its Emission Trading System (ETS) and having reduced the GHG intensity per unit of GDP since 2015 (OECD, 2025[2]).
Energy industries are the largest source of GHG emissions, followed by transport and agriculture. In recent years, emissions from transport, particularly from domestic aviation and road transport, increased following the easing of COVID-related movement restrictions. Emissions from agriculture increased in recent years due to record crop production and increased livestock numbers due to high water availability. On the other hand, the land use, land-use change and forestry (LULUCF) sector went from a net carbon emitter to a carbon sink since 2015, despite the wildfires of recent years. Decreases were due to inter-annual variations in climate drivers, with declining rainfall trends due to the ending of La-Niña conditions contributing to increased fire activity in forest lands, grasslands and wetlands, and declining soil carbon sequestration in croplands and grasslands. These increases were partially offset by ongoing reductions in the emissions intensity of electricity generation and a small reduction in fugitive emissions due to decreases in oil and gas fugitive emissions, driven by a reduction in liquified natural gas (LNG) exports (OECD, 2025[2]).
Australia’s energy mix is largely dominated by fossil fuels. Although the share of coal, peat and oil shale in total energy supply declined from about 44.5% in 2000 to 28.8% in 2025, coal mining still dominates Australia’s energy production. Australia is the world’s second largest coal net exporter by volume and exports more than three-quarters of the country’s coal output.
Australia also produces and exports large volumes of natural gas, of which the proven reserves have grown significantly in recent years with the commercialisation of large volumes of unconventional gas (i.e. coal‑bed methane). Overall, around 80% of the country’s total energy production is exported (OECD, 2023[3]). The share of natural gas in total energy supply increased from less 17.8% in 2000 to 25.6% in 2025, and that of oil from 31.6% to 34.9%.
The share of renewables in total energy supply is low, at 10.6% in 2025, and has not increased much since 2000. By contrast, the share of renewables in electricity production increased rapidly, from 8.4% in 2000 to 37.2% in 2025. Most of the growth stems from solar photovoltaics (PV), as high state-level targets and power purchase agreements are driving the expansion of utility-scale renewables. Renewables deployment is further backed by a rise in energy storage. At the household level, Australia has the highest penetration in the world, with one in three households having solar PV installations. Australia aims for clean electricity sources to account for over 80% of its power mix by 2030 (IEA, 2023[1]).
Emissions of sulphur oxides and non-methane volatile organic compounds (NMVOC) have been decoupled from economic activity, but emissions of nitrogen oxides (NOx) continue to grow and emission intensities remain high, driven by industrial and transport activities. Australia addresses national air quality issues through a coordinated effort between the Commonwealth government in cooperation with individual states and territories under the National Clean Air Agreement that was established in December 2015.
A National Environment Protection (Ambient Air Quality) Measure establishes national ambient air quality standards and a national framework for the monitoring and reporting of six common air pollutants to which most Australians are exposed: carbon monoxide (CO), ozone (O3), sulphur dioxide (SO2), nitrogen dioxide (NO2), lead and particles.
Population exposure to PM2.5 is above the 2021 guideline value of 5 µg/m3 recommended by the World Health Organization but remains low by OECD standards. Regional differences range from 5.7 microgrammes/m3 in South Australia to 9.8 in the New South Wales.
At the national level, Australia's water stress level over the last 20 years remains relatively low. However, this national-level estimate hides important sub-national variations both on a spatial and temporal basis. Water security risks are unevenly distributed across basins and regions, with pressures concentrated in highly populated coastal areas, heavily allocated river systems and regions subject to declining rainfall trends.
Australia’s hydrological profile is characterised by high inter-annual climate variability, with pronounced cycles of drought and flood. Total rainfall for Australia in 2024-25 was 10% above the 1961-1990 average. Regionally, rainfall was 21% above average for much of the north of Australia. Parts of Queensland and north-eastern New South Wales recorded significant flooding, along with Western Australia. While recent above-average rainfall, following three consecutive La Niña years, has reduced short-term pressures in some regions, long-term climate trends indicate increasing variability and declining cool-season rainfall. There were areas that received below average rainfalls, with southern Australia receiving 5% below average, and parts of South Australia and Victoria experiencing lowest rainfall on record.
Australia's abstraction intensity for public supply has remained reasonably constant over the past years. 1 In 2024-25, there was slightly more rainfall than usual, which increased the availability of surface water, but unevenly. Desalination plants also reduced their production for water supply services, as more water was available from other sources. Desalination plants, however, still have an important role in Australia’s water management. They provide an alternative source of water that is not affected by climate variability. Strengthening adaptive capacity and long-term climate resilience of water systems remains an ongoing policy priority, as national averages do not fully capture future exposure under changing climatic conditions.
Over 90% of the Australian population is connected to a wastewater treatment plant, of which about half to advanced, tertiary treatment systems.
The rural residential population connected to the sewerage treatment is very small, and the data is not available. Connection rates are lower in rural residential areas, where decentralised systems are more common and national data coverage is limited.
The generation of municipal waste per person, at 510 kg in 2023, has declined in recent years and is now slightly lower than the OECD average. Still almost half of municipal waste is landfilled, while the share of recycling has decreased and the share of composting has increased. 2
Per person domestic material consumption has decreased during 2000-08 and remained relatively stable since, at a level much higher than the OECD average. This is due to the coal and mining sectors, reflected in the material mix, with a share of metals much higher than other OECD countries.
Australia is one of the few countries with a material footprint lower than domestic material consumption. This is also explained by exports in the coal and mining sectors.
Australia’s biodiversity is both rich and unique; between 7 and 10 percent of all species on Earth occur in Australia. A report prepared for the Australian Biological Resources Study in 2009 estimated that 566 398 species exist in the country. Australia’s biodiversity has developed largely in isolation over many millions of years, making it one of the world’s megadiverse countries with a high level of endemism across a broad range of taxa. Biodiversity has been influenced by the range and diversity of environmental conditions, which are different from most other countries due to characteristics such as nutrient-poor soils, natural climatic variability, high fire frequencies and a generally flat topography.
Australia’s native vegetation is extraordinarily diverse, rich in species and complexity and has many unique physical features. Native vegetation is a vital component of the nation’s biodiversity with about 85% of Australia’s plant species endemic to the continent. Although Australia retains much of the estimated original extent of native vegetation cover, its condition is variable and masks an underlying issue in the decline of many ecological communities. Vegetation clearance has not been evenly spread across Australia and, consequently, some individual vegetation communities now occupy less than 1% of their original estimated extent and many others are highly fragmented. In some cases, the threats to the condition and extent of these and other native vegetation communities are ongoing (Australia, 2026[4]).
According to the Food and Agricultural Organization of the United Nations (FAO), Australia has a very high percentage of land used for meadows and pastures, 43%, while forests represent only 17% of land used.
With almost 25% of Australia’s landmass protected, Australia is above the OECD average. About 45% of marine areas are protected, including 15% under a high level of protection, an almost unique achievement across OECD countries. Australia has committed to protect and conserve 30% of its land by 2030, and has surpassed the goal to protect and conserve 30% of its marine areas by 2030 set out in the Kunming-Montreal Global Biodiversity Framework (GBF) under the Convention on Biological Diversity.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
The share of environmentally related tax revenues in GDP has declined alongside the OECD average. The sudden drop in 2022 is due to a temporary 50% cut in fuel excise from 30 March to 28 September 2022 to ease cost of living pressures associated with high international oil prices (OECD, 2023[3]).
The share of environmentally related tax revenues in total revenues has also declined. Like most OECD countries, the energy and transport bases command almost all revenues, with the pollution tax base providing a tiny share.
In total, 38.4% of GHG emissions in Australia were subject to a positive Net Effective Carbon Rate (ECR)3 in 2023. Explicit carbon prices in Australia consist of emissions trading system (ETS) permit prices, which cover approximately 30% of GHG emissions in CO2 equivalent. Fuel excise taxes, an implicit form of carbon pricing, covered 14.3% of emissions in 2023. About 13% of GHG emissions have a Net ECR above EUR 60 per tonne of CO2 equivalent, a mid-range estimate of current carbon costs. Net Effective Carbon Rates are highest in the road transport sector, which accounts for 13.4% of the country's total GHG emissions. The Net ECR is on average zero in the agriculture and fisheries sector, which accounts for 1.4% of GHG emissions (OECD, 2024[5]).
Environmentally related government R&D budget remained stable at around 4-5% of total government R&D budget during 2015-24. By contrast, the share of renewables in energy public RD&D budget has fluctuated wildly, from a peak of 54% in 2015 down to 18.2% in 2023. Australia’s research and development tax incentive remains an important driver for innovation investment by the private sector (IEA, 2023[1]).
With a 2021-23 average of 8.9 environmentally related inventions by national residents per million inhabitants, less than half of the OECD average, Australia is not a major player in environmentally related patenting. The share of environmentally related in total inventions has followed the OECD average, at 9.2% in 2023.
Australia’s development co-operation focuses on countries in the Indo-Pacific region. While its official development assistance (ODA) has stabilised, it remains low by international standards, at 0.18% of gross national income in 2025, down from 2.7% in 2024.
In 2024, the largest sectoral focus of Australia’s bilateral ODA was social infrastructure and services, with other sectors mainly receiving general budget support. However, an important share has direct or indirect environmental objectives. In 2023-2024, Australia committed 41.7% of its total bilateral allocable ODA in support of the environment and the Rio Conventions, up from 39.6% in 2021-2022. The share of aid for climate change has also increased considerably in latest years, with a greater focus on adaptation (38.9% in 2023-2024). By contrast, ODA for biodiversity and desertification has been declining, commanding a combined share of less than 5% (OECD, 2026[6]).
References
[4] Australia (2026), 7th National Report to the Convention on Biological Diversity (CBD), https://ort.cbd.int/national-reports/nr7.
[1] IEA (2023), Australia 2023 Energy Policy Review, OECD Publishing, Paris, https://doi.org/10.1787/ebff8fca-en.
[6] OECD (2026), Development Co-operation Profiles, OECD Publishing, Paris, https://www.oecd.org/en/publications/development-co-operation-profiles_04b376d7-en/australia_b4d74d53-en.html.
[2] OECD (2025), Climate Action Monitor, 2025, https://doi.org/10.1787/1819c631-en.
[5] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
[3] OECD (2023), OECD Inventory of Support Measures for Fossil Fuels: Country Notes, OECD Publishing, Paris, https://doi.org/10.1787/5a3efe65-en.
Further readings
An understanding of the agricultural nitrogen balance is particularly important in the management of nutrient run-off into the Great Barrier Reef. See the Paddock to Reef Program as part of the Reef 2050 Water Quality Improvement Plan.
Fertilizer Australia (data to 2017).
National Water Account Urban Regions 2020 | Commonwealth Bureau of Meteorology, Water Account, Australia, 2018-19 financial year | Australian Bureau of Statistics
This recent paper provides guidance on the types of information sources required to calculate an agricultural nitrogen balance – this is for SW Western Australia cropping systems based on an historical database (2010-2015) - Harries et al., 2021.
The Australian national State of the Environment report 2021, https://soe.dcceew.gov.au/
Urban National Performance Report 2019-20 financial year | Commonwealth Bureau of Meteorology, Regional Water Information
OECD (2019), OECD Environmental Performance Reviews: Australia 2019, OECD Environmental Performance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264310452-en
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← 1. Data show a break in time series in 2015 due to a change in methodology, e.g. estimates on abstraction for aquaculture and private households are no longer available due to data availability/quality issues. Earlier time series for these items (2014–15 to 2016–17) were retained in the dataset for continuity, but they have not been included in total abstraction since 2015–16.
← 2. The category Other recovery refers to energy recovery from the collection of methane generated from the anaerobic decay of organic waste in large landfills (commonly used to generate electricity for sale into the grid).
← 3. ECR is the sum of tradeable emission permits, carbon taxes and fuel excise taxes, all of which result in a price on GHG emissions, while Net ECR are effective carbon rates net of pre-tax fossil fuel support.