Australia's greenhouse gas emissions drop 2.1% as renewable energy displaces fossil fuels

Australia's greenhouse gas emissions have dropped, showing signs of a turning point in the country's most polluting sectors.

Emissions are at their lowest point since the COVID pandemic shut down the economy, dropping 2.1 per cent over the year to December 2025, according to the latest national greenhouse gas inventory update.

The significant drop is largely driven by clean energy replacing fossil fuels in electricity generation, but transport emissions also continued to fall, year-on-year, for the second quarter in a row since the pandemic.