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<!DOCTYPE html>
<html>
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<meta charset="utf-8">
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<body>
<h1>AUSTRALIA’S NATIONALLY DETERMINED CONTRIBUTION</h1>
<p>AUSTRALIA’S NATIONALLY DETERMINED CONTRIBUTION – COMMUNICATION 2021 1</p>
<p>Content contained herein should be attributed as:</p>
<p>Australia’s Nationally Determined Contribution Communication 2021,</p>
<p>Australian Government Department of Industry, Science, Energy and Resources.</p>
<p>Disclaimer</p>
<p>The Australian Government as represented by the Department of Industry, Science, Energy and Resources has exercised due care and skill in the preparation and compilation of the information and data in this publication. Notwithstanding, the Commonwealth of Australia, its officers, employees, or agents disclaim any liability, including liability for negligence, loss howsoever caused, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data in this publication to the maximum extent permitted by law. No representation expressed or implied is made as to the currency, accuracy, reliability or completeness of the information contained in this publication. The reader should rely on their own inquiries to independently confirm the information and comment on which they intend to act. This publication does not indicate commitment by the Australian Government to a particular course of action.</p>
<h2>I. Australia’s commitments</h2>
<p>By this submission, Australia communicates its updated and enhanced first Nationally Determined Contribution (NDC) under the Paris Agreement.</p>
<ul>
<li>
<p><strong>Australia adopts a target of net zero emissions by 2050.</strong> This is an economy-wide target, covering all sectors and gases included in Australia’s national inventory.</p>
</li>
<li>
<p>In order to achieve net zero by 2050, <strong>Australia commits to seven low emissions technology stretch goals</strong> - ambitious but realistic goals to bring priority low emissions technologies to economic parity with existing mature technologies.</p>
</li>
<li>
<p><strong>Australia reaffirms its ambitious economy-wide target</strong> to reduce greenhouse emissions to by 26 - 28% below 2005 levels by 2030, and will exceed it by up to 9 percentage points. Australia’s emissions projections 2021 demonstrate that we are on track to reduce emissions by up to 35% below 2005 levels by 2030.<a href="#fn1" class="footnoteRef" id="fnref1"><sup>1</sup></a></p>
</li>
</ul>
<p>The details of Australia’s 2030 and 2050 targets and low emissions stretch goals are set out in Tables 1–3, along with the information for clarity, transparency and understanding in accordance with decision 4/CMA.1 (see Table 4).</p>
<p>Emissions reduction targets must go hand-in-hand with real outcomes. Australia has a strong track record of setting emissions reduction targets that are both ambitious and achievable, and of holding ourselves accountable for exceeding them. Australia met and exceeded its first and second commitment period targets under the Kyoto Protocol and its 2020 target under the Convention. We are on track to overachieve against our 2030 target.</p>
<p><strong>Australia’s performance against its 2030 target, and our commitment to our low emissions technology economic stretch goals place us on a trajectory to achieving net zero emissions by 2050. Australia has a Long Term Emissions Reduction Plan which details how we will achieve net zero emissions by 2050</strong>.</p>
<p>Projected emissions are lower than all previous projections, and Australia has outperformed all previous projections. Since 2018, Australia’s forecast position against the 2030 target has improved by 843 Mt CO₂-e, equivalent to taking all of Australia’s 14.9 million passenger vehicles off the road for more than 19 years.</p>
<p>The improvement in the 2021 emissions projections reflects the impact of:</p>
<ul>
<li>
<p>$1.6 billion in new technology-focused emissions reduction measures in the Australian Government’s 2021–22 Budget</p>
</li>
<li>
<p>Australia’s world leading uptake of renewables</p>
</li>
<li>
<p>the latest forecasts, including on energy consumption.</p>
</li>
</ul>
<h2>Australia’s emissions have fallen faster than every previous forecast, 2005–2030</h2>
<p><img width="410" height="237" alt="image" src="img/AUS-NDC1-1.png"/></p>
<p>Australia’s pathway to net zero is summarized in Section II of this communication and detailed in Australia’s whole of economy Long Term Emissions Reduction Plan.</p>
<p>Comprehensive modelling and analysis has been undertaken to inform Australia’s whole of economy Long Term Emissions Reduction Plan. The scenarios examined through this modelling illustrate that getting new energy technologies to parity with existing higher emissions alternatives will bring net zero within reach.</p>
<p>Australia will close any remaining gap to net zero consistent with the principles set out in the Plan, and will conduct five yearly ‘review and refine’ cycles to take stock of progress towards net zero, ensuring our policies are calibrated to ensure its achievement, including by identifying additional emission reduction opportunities, reflecting the latest technology advances, international developments, and other factors.</p>
<p>Australia will also conduct regular reviews of the impacts of our policies on our regions, energy prices, jobs and other economic indicators. Under the Technology Investment Roadmap, Australia will also report annually on progress towards the technology stretch goals and the investments the Government is making to support their achievement.</p>
<h2>Australia’s review and refine processes</h2>
<table>
<tr>
<td>
<p>Review</p>
</td>
<td>
<p>Scope of Review</p>
</td>
<td>
<p>Timing</p>
</td>
</tr>
<tr>
<td>
<p>Paris Agreement – Review and refine cycle</p>
</td>
<td>
<p>Comprehensive reviews of domestic emissions reduction policies, emissions trends and progress in reducing emissions, to inform the setting of upcoming Nationally Determined Contributions and any policy adjustments needed to maintain a pathway towards net zero emissions by 2050.</p>
</td>
<td>
<p>Every five years, to coincide with Australia setting its five yearly NDCs under the Paris Agreement.</p>
</td>
</tr>
<tr>
<td>
<p>Low Emissions Technology Statements</p>
</td>
<td>
<p>Reports on progress towards achieving Australia’s technology stretch goals and the investments made by the Government to meet them.</p>
<p>May identify additional technology goals.</p>
</td>
<td>
<p>Annual.</p>
</td>
</tr>
<tr>
<td>
<p>Emissions Reduction Policy Impact assessments</p>
</td>
<td>
<p>Domestic reviews to report on the impacts on households and regions of Commonwealth, State and Territory emissions reduction policies.</p>
<p>These reviews will report against a range of key economic indicators such as energy prices, employment (particularly regional employment), export volumes and trends, investment trends and growth in national income.</p>
</td>
<td>
<p>Every five years, with the first to be undertaken in 2023.</p>
</td>
</tr>
</table>
<p>The details of Australia’s 2050 target are provided in Table 1. Australia will track progress towards net zero emissions in its Biennial Transparency Reports under the Paris Agreement, on the basis of national emissions reported in its National Inventory Document.</p>
<p>Section III of this communication provides a summary of Australia’s low emissions technology stretch goals and the Government’s approach to supporting their achievement. Achieving these goals is fundamental to reaching net zero emissions across the economy. Full details are set out in the Government’s Low Emissions Technology Statement 2021 (LETS 2021).</p>
<h2>II. Australia’s plan to achieve net zero emissions by 2050</h2>
<p>Australia’s whole-of-economy Long Term Emissions Reduction Plan is our plan for achieving net zero emissions by 2050 and positioning our economy to seize the opportunities of the global shift to lower emissions. The Plan is focused on ‘the how’, on practical action to convert ambition into achievement, because a target without a Plan is meaningless.</p>
<p>Australia’s plan has the wellbeing and prosperity of Australia’s regional communities at its core. It recognises that trends in technology and consumer preferences will drive a global shift towards low emissions energy sources and new energy technologies. The Government will partner with Australian communities and businesses to provide the support they need to benefit from these shifts by capturing new markets and economic opportunities.</p>
<p>Five core principles guided the development of our Plan and Australia’s suite of emissions reduction policies. Taken together, these principles will ensure Australia’s shift to a net zero emissions economy will be effective, fair and equitable, and that no sector of the economy will carry a disproportionate burden.</p>
<ol>
<li>
<p>We will deploy technology not taxes. Our focus is on reducing the cost of low emissions energy sources, not raising the cost of existing approaches. Our approach will not impose new costs on households or businesses, enabling Australia to achieve our emissions reduction targets while growing our economy and jobs.</p>
</li>
<li>
<p>The Government will expand choices, not mandates, recognising that widespread deployment of mature technologies will be led by the private sector with an enabling role for government, as households and businesses adopt new technologies where it makes sense for them to do so.</p>
</li>
<li>
<p>Achieving the global Paris goals requires transformative technologies to be deployed at scale across all sectors of the economy. Our priority must be to drive down the cost of a range of technologies to bring them to commercial parity. This is the objective of Australia’s Technology Investment Roadmap.</p>
</li>
<li>
<p>We will protect the competitiveness of our businesses and industries, and the livelihoods of Australians and keep energy prices down with affordable and reliable power.</p>
</li>
<li>
<p>Transparency is essential to convert ambition into achievement. Australia will be accountable for progress under our Plan, setting the global benchmark for transparency and accountability in our emissions reporting. Globally, Australia will continue to advocate for all major economies to be held to the same high standards of transparency.</p>
</li>
</ol>
<p>The plan focuses not only on reducing our own emissions, but also on how Australia will play a leadership role in meeting the Paris Agreement goals through our low emissions energy exports and contributions to innovation. Importantly, Australia will continue supplying the energy exports in demand in the global economy so long as they are needed to support the economies of our trading partners. Through these efforts, we will partner with countries in our region to ensure access to the technologies, finance and clean, affordable energy needed to transition their economies and achieve their broader development goals.</p>
<p>This recognizes that global pathways to achieving the Paris goals must also deliver the economic development needs and aspirations of many countries. A technology-led approach is the only viable and realistic way to balance these objectives. Australia is embracing this leadership role because a renewed global effort is needed to develop low emissions technologies so they are globally accessible, affordable and scalable.</p>
<p>Australia’s Plan has been informed by detailed modelling and analysis of potential impacts on our economy, with a particular focus on the importance of low cost, clean technologies. Achieving net zero emissions by 2050 will depend on our success in reducing the costs of low emissions technologies and accelerating their deployment at scale across all sectors.</p>
<p>Australia’s policies are focused on the technologies that can open these critical pathways.</p>
<p>A portfolio of technologies will be needed, including cross-cutting ‘platform’ technologies (like hydrogen) and technologies tailored to specific and niche applications within individual sectors.</p>
<p>By investing in research, development and demonstration, the government will, in partnership with the private sector, drive down the cost of these key technologies and achieve their economic stretch goals, unlocking their use across the economy. The Technology Investment Roadmap is the cornerstone of this approach.</p>
<h2>III. Low emissions technology stretch goals</h2>
<p>The Australian Government’s Technology Investment Roadmap establishes an enduring process to accelerate the development and commercialisation of new and emerging low emissions technologies. The aim is to drive priority technologies to cost parity with higher emissions alternatives.</p>
<p>Priority low emissions technologies and accompanying economic stretch goals are identified in annual Low Emissions Technology Statements. Economic stretch goals are ambitious but realistic goals representing the point at which each priority technology will become cost competitive with existing higher emitting technologies, leading to adoption at large scale across the economy, significantly reducing emissions without additional costs. Australia is committed to achieving the seven economic stretch goals, and will track progress towards them in each Biennial Transparency Report on the basis described in table 2 below, informed by an impact evaluation framework. Meeting the economic stretch goals will result in significant emission reductions. Accelerated deployment of the priority technologies and enabling infrastructure takes us about 40 per cent of the way to net zero emissions.</p>
<p>These technologies will also underpin further emissions reductions in Australia resulting from global low emissions technology trends, like electric vehicles powered by zero emissions electricity. These global trends are estimated to contribute up to a further third of the required emissions reductions for Australia to reach net zero emissions.</p>
<p>These technologies are also important for addressing emissions internationally. They address emissions in sectors that account for 90 per cent of global emissions, or around 45 billion tonnes CO2-e annually.</p>
<h2>Australia’s low emissions economic stretch goals</h2>
<table>
<tr>
<td>
<p>Priority technology stretch goal</p>
</td>
<td>
<p>Potential pathway</p>
</td>
<td>
<p>Expected timeframe for achievement</p>
</td>
</tr>
<tr>
<td>
<p>Clean hydrogen production under $2/kg</p>
</td>
<td>
<p>Steam methane reforming with CCS</p>
</td>
<td>
<p>2025–2030</p>
</td>
</tr>
<tr>
<td>
<p> </p>
</td>
<td>
<p>Renewable electrolysis</p>
</td>
<td>
<p>2028–2035</p>
</td>
</tr>
<tr>
<td>
<p>Ultra low-cost solar – solar electricity generation at $15/MWh</p>
</td>
<td>
<p>Large scale solar</p>
</td>
<td>
<p>2030–2035</p>
</td>
</tr>
<tr>
<td>
<p>Energy storage – electricity from storage for firming under $100/MWh</p>
</td>
<td>
<p>Lithium-ion batteries</p>
</td>
<td>
<p>2025–2030</p>
</td>
</tr>
<tr>
<td>
<p>Low emissions steel production under $700/t (based on the long run marginal cost)</p>
</td>
<td>
<p>New build direct iron reduction plant using hydrogen</p>
</td>
<td>
<p>2030–2040</p>
</td>
</tr>
<tr>
<td>
<p>Low emissions aluminium production under $2,200/t (based on the long run marginal cost)</p>
</td>
<td>
<p>Renewable electricity and inert anodes</p>
</td>
<td>
<p>2035–2040</p>
</td>
</tr>
<tr>
<td>
<p>Carbon capture and storage – CO2 compression, hub transport and storage under $20/t of CO2</p>
</td>
<td>
<p>Expected deployment timeframe</p>
</td>
<td>
<p>2025–2030</p>
</td>
</tr>
<tr>
<td>
<p>Soil carbon measurement under $3/ha/year</p>
</td>
<td>
<p>Advancement in proximal sensing, modelling and remote sensing technologies</p>
</td>
<td>
<p>2025–2030</p>
</td>
</tr>
</table>
<p><strong>The Australian government will invest at least $20 billion in low emissions technologies by 2030, to drive over $80 billion of total public and private investment over the decade.</strong> This investment will support 160,000 new jobs across Australia.</p>
<p>The Australian Government is continuing to leverage investment in clean and low emissions energy through the Clean Energy Finance Corporation (CEFC), which is the world’s largest government owned green bank, and the Australian Renewable Energy Agency (ARENA). Through ARENA and CEFC, Australia has already mobilized over $10.8 billion in funding to support projects with a total value of almost $38 billion.</p>
<p>The new commitments contained in this 2021 communication are additional to the ambition communicated in Australia’s 2015 and 2020 NDC communications. This communication should be read alongside the commitments contained in Australia’s 2020 communication, which set out an update on newly announced policies and measures, and provides a snapshot of progress on policies and measures outlined in the 2015 NDC communication, including Australia’s commitment to transparency and to advancing adaptation and resilience.</p>
<h2>Australia’s action to advance adaptation and resilience</h2>
<p>Australia has a strong history of investing and taking action on climate adaptation to build resilience and adapt both at home and in our region. Historically over 70 percent of Australia’s bilateral and regional climate finance is focused on climate resilience and adaptation, reflecting key priorities for our region.</p>
<p>Australia’s new National Climate Resilience and Adaptation Strategy sets out what the Australian Government will do to support efforts across all levels of government, business and the community, to better anticipate, manage and adapt to the impacts of climate change. The Strategy sets out three interlinked objectives to ensure Australians can better protect our natural assets, build community resilience and generate economic opportunities. The Strategy also sets the path to deeper cooperation with our Indo-Pacific and international partners, and the global community. By working together, we can share our expertise and experience to better target our investments and the maximise benefits.</p>
<p>Australia has delivered the adaptation communication committed to in our 2020 NDC. Australia’s adaptation communication showcases our ongoing action and progress to the UNFCCC. Australia’s adaptation action is built on partnerships. Australia will continue to make strong contributions to global climate science and sharing our expertise, experiences and skills across the globe toward stronger adaptation and resilience outcomes.</p>
<p>Tables 1–3: Australia’s Nationally Determined Contribution</p>
<table>
<tr>
<td>
<p>1.1</p>
</td>
<td>
<p>Quantifiable information on reference point</p>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>
<p>Target</p>
</td>
<td>
<p>26 to 28 per cent below 2005 levels by 2030, implemented as an emissions budget covering the period 2021–2030</p>
</td>
<td>
<p>Net zero emissions by 2050</p>
</td>
</tr>
<tr>
<td>
<p>1.1.1</p>
</td>
<td>
<p>Reference year or other starting point</p>
</td>
<td>
<p>Emissions budget for the period 2021–2030</p>
</td>
<td>
<p>Australia’s net emissions in the most recently available year, published in the annual National Inventory Report.</p>
</td>
</tr>
<tr>
<td>
<p>1.1.2</p>
</td>
<td>
<p>Quantifiable information on the reference indicators</p>
</td>
<td>
<p>The indicative value of the emissions budget is 4764 Mt C02-e, corresponding to the 28% target, as published in Australia’s emissions projections 2021.</p>
</td>
<td>
<p>Australia’s net emissions in 2019, were 529.3 million tonnes CO2e, as reported in the National Inventory Report submitted 15 April 2021 (TableA3.1, Annex 3, Volume 3).</p>
<p>According to the latest Quarterly Update of Australia’s Greenhouse Gas Inventory, emissions in the year to March 2021 were 494.2 Mt CO2-e.</p>
</td>
</tr>
<tr>
<td>
<p>1.1.3</p>
</td>
<td>
<p>If a Least Developing Country (LDC) or Small Island Developing State (SIDS) info on strategies, actions</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.1.4</p>
</td>
<td>
<p>Value of target relative to the reference indicator</p>
</td>
<td>
<p>Australia’s 2030 target (28%) is equivalent to its reference indicator (emissions budget).</p>
</td>
<td>
<p>Net zero emissions by 2050</p>
</td>
</tr>
<tr>
<td>
<p>1.1.5</p>
</td>
<td>
<p>Data used in quantifying the reference point</p>
</td>
<td>
<p>Quantification of the reference indicator is based on data reported in Australia’s emissions projections, and in its annual National Inventory Report.</p>
</td>
<td>
<p>Quantification of the reference indicator is based on data reported in Australia’s annual National Inventory Report.</p>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="2">
<p>Estimates apply the 100 year Global Warming Potentials (GWPs) as contained in the IPCC Fifth Assessment Report</p>
</td>
</tr>
<tr>
<td>
<p>1.1.6</p>
</td>
<td>
<p>Updates to the values of the reference indicators</p>
</td>
<td>
<p>The value may be updated to reflect inventory improvements, including additional sources and recalculations resulting from continuous methodological improvements, and updates to Australia’s projections.</p>
</td>
<td>
<p>The value may be updated to reflect inventory improvements, including additional sources and methodological improvements.</p>
</td>
</tr>
<tr>
<td>
<p>1.2</p>
</td>
<td>
<p>Time frames</p>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td>
<p>1.2.1</p>
</td>
<td>
<p>Time frame for implementation</p>
</td>
<td>
<p>2021–2030</p>
</td>
<td>
<p>2021–2050</p>
</td>
</tr>
<tr>
<td>
<p>1.2.2</p>
</td>
<td>
<p>Single-year or multi-year target</p>
</td>
<td>
<p>Multi-year budget</p>
</td>
<td>
<p>Single-year</p>
</td>
</tr>
<tr>
<td>
<p>1.3</p>
</td>
<td>
<p>Scope and coverage</p>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td>
<p>1.3.1</p>
</td>
<td>
<p>General description of the target</p>
</td>
<td>
<p>Absolute economy-wide emissions reduction, as an emissions budget covering 2021–2030</p>
</td>
<td>
<p>Absolute economy-wide emissions target expressed as a single-year target</p>
</td>
</tr>
<tr>
<td>
<p>1.3.2</p>
</td>
<td>
<p>Sectors, gases, categories and pools covered by the target</p>
</td>
<td colspan="2">
<p>Carbon dioxide (CO2); Methane (CH4); Nitrous oxide (N2O); Hydrofluorocarbons (HFCs); Perfluorocarbons (PFCs); Sulphur hexafluoride (SF6); Nitrogen trifluoride (NF3)</p>
<p>All sector, categories and carbon pools, as defined by the IPCC 2006 guidelines, and additional sources reported in the annual National Inventory Report.</p>
</td>
</tr>
<tr>
<td>
<p>1.3.3</p>
</td>
<td>
<p>Complete and continuous coverage</p>
</td>
<td colspan="2">
<p>Australia has included all categories of anthropogenic emissions or removals in its NDC. No source, sink, or activity that was included in Australia’s 2020 target under the Convention has been excluded.</p>
</td>
</tr>
<tr>
<td>
<p>1.3.4</p>
</td>
<td>
<p>Mitigation co-benefits</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.4</p>
</td>
<td colspan="2">
<p>Assumptions and methodological approaches for emissions estimates and accounting</p>
</td>
<td></td>
</tr>
<tr>
<td>
<p>1.4.1</p>
</td>
<td>
<p>Accounting for emissions and removals</p>
</td>
<td>
<p>Australia assesses progress towards its 2030 target by comparing cumulative net emissions over the period 2021–2030 with the emissions budget for the period.</p>
</td>
<td>
<p>Australia will account for its 2050 target on the basis of total net national emissions reported in its National Inventory Document for the year 2050, submitted under the Paris Agreement.</p>
</td>
</tr>
<tr>
<td></td>
<td></td>
<td colspan="2">
<p>Australia will make corresponding adjustments for any internationally transferred mitigation outcomes should the Australian Government authorize any for use towards NDCs.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.2</p>
</td>
<td>
<p>Accounting for the implementation of policies and measures or strategies</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.3</p>
</td>
<td>
<p>IPCC methodologies and metrics used and existing approaches</p>
</td>
<td colspan="2">
<p>Australia intends to apply 100 year Global Warming Potentials (GWPs) as contained in inventory reporting guidelines, currently IPCC Fifth Assessment Report 100 year GWPs, or as otherwise agreed.</p>
<p>The estimates of emissions and removals used in accounting for the NDC will be those reported in the Inventory, which will apply the IPCC 2006 Guidelines, or subsequent version or refinement as agreed by the CMA, and nationally appropriate methods consistent with that guidance and informed inter alia by the IPCC 2019 Refinement and IPCC 2013 Wetlands Supplement.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.4</p>
</td>
<td>
<p>Sector, category or activity specific</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.5</p>
</td>
<td>
<p>Natural disturbances</p>
</td>
<td colspan="2">
<p>Australia will address emissions and subsequent removals from natural disturbances in accounting for its NDC. The carbon stock changes from natural disturbances are included in the national emissions totals, as described in Australia’s National Inventory Report (15 April 2021) consistent with approaches set out in the IPCC 2006 guidelines and the 2019 IPCC Refinement. The approach will be reported in the National Inventory Document.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.6</p>
</td>
<td>
<p>Harvested wood products;</p>
</td>
<td colspan="2">
<p>Australia will use a stock-change approach consistent with the IPCC 2006 Guidelines to estimate emissions from Harvested Wood Products, consistent with the 2006 IPCC Guidelines and paragraph 56 of the Annex to decision 18/CMA.1. The methodology will be described in detail in the National Inventory Document.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.7</p>
</td>
<td>
<p>Effects of age-class structure in forests;</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.8</p>
</td>
<td>
<p>Construction of the reference indicators</p>
</td>
<td>
<p>The emissions budget for the 2030 target is calculated using a straight-line trajectory which takes a linear decrease from 2020 to 2030. This trajectory begins from Australia’s 2020 target (5 per cent below 2000 levels), and finishes at 28 per cent below 2005 levels in 2020. The area under the trajectory for the period 2021–2030 is the emissions budget for the 2030 target.</p>
</td>
<td>
<p>The reference indicator for the 2050 target is net national greenhouse gas emissions in the most recently available year, as published in the National Inventory Report annually. The definitions, data sources and models used to estimate net emissions are those described in the National Inventory Document.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.9</p>
</td>
<td>
<p>Non greenhouse-gas components;</p>
</td>
<td colspan="2">
<p>Refer to Table 2.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.10</p>
</td>
<td>
<p>Climate forcers, as applicable</p>
</td>
<td colspan="2">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>1.4.11</p>
</td>
<td>
<p>Intended use of voluntary cooperation under Article 6 of the Paris Agreement</p>
</td>
<td colspan="2">
<p>Should Australia decide to cooperative approaches under Article 6 of the Paris Agreement towards achievement of its NDC or to authorize the use of internationally transferred mitigation outcomes towards the NDCs of other Parties, it would report on such use or authorization through its biennial transparency reports and consistent with any guidance adopted under Article 6.</p>
</td>
</tr>
</table>
<p>Table 2: Priority Low Emissions Technology Economic Stretch Goals</p>
<table>
<tr>
<td>
<p>2.1</p>
</td>
<td colspan="3">
<p>Quantifiable information on reference point</p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td></td>
<td>
<p>Priority technology</p>
</td>
<td>
<p>Clean Hydrogen</p>
</td>
<td>
<p>Ultralow-cost solar</p>
</td>
<td>
<p>Energy Storage</p>
</td>
<td>
<p>Low emissions steel</p>
</td>
<td>
<p>Low emissions aluminum</p>
</td>
<td>
<p>Carbon capture and storage</p>
</td>
<td>
<p>Soil Carbon measurement</p>
</td>
</tr>
<tr>
<td colspan="2">
<p>Target</p>
</td>
<td>
<p>Clean hydrogen production under $2 per kilogram</p>
</td>
<td>
<p>Solar electricity generation at $15/ MWh</p>
</td>
<td>
<p>Electricity from storage for firming (available on demand for 8 hours or more) at under $100/MWh</p>
</td>
<td>
<p>Low emissions steel production under $700 per tonne (based on the marginal cost)</p>
</td>
<td>
<p>Low emissions aluminium under $2,200 per tonne (based on the marginal cost)</p>
</td>
<td>
<p>CO2 compression, hub transport and storage under $20 per tonne of CO2</p>
</td>
<td>
<p>$3 per hectare per year</p>
</td>
</tr>
<tr>
<td>
<p>2.1.1</p>
</td>
<td>
<p>Reference indicator</p>
</td>
<td>
<p>Cost of clean hydrogen production</p>
</td>
<td>
<p>Levelised cost of solar electricity</p>
</td>
<td>
<p>Cost of battery storage</p>
</td>
<td>
<p>Cost of low emissions steel</p>
</td>
<td>
<p>Cost of low emissions aluminium</p>
</td>
<td>
<p>Cost of CO2 compression, hub transport and storage</p>
</td>
<td>
<p>Cost of soil carbon measurement per hectare per year</p>
</td>
</tr>
<tr>
<td colspan="2">
<p>Reference year or other starting point</p>
</td>
<td>
<p>Calendar year 2021</p>
</td>
<td>
<p>Financial year 2020–21</p>
</td>
<td>
<p>Financial year 2020–2021</p>
</td>
<td>
<p>2024</p>
</td>
<td>
<p>2024</p>
</td>
<td>
<p>2024</p>
</td>
<td>
<p>Calendar year 2020</p>
</td>
</tr>
<tr>
<td>
<p>2.1.2</p>
</td>
<td>
<p>Quantifiable information on the reference indicators</p>
</td>
<td>
<p>Current clean hydrogen production costs range from $1.7 – $10.7 /kgH2 driven by regional variances and production method (2021 State of Hydrogen Report)</p>
</td>
<td>
<p>Current LCOE for large scale solar PV estimated to be $49–$72 in 2020 (CSIRO, GenCost 2020–21)</p>
</td>
<td>
<p>Cost of battery storage (8 hour) is estimated to be $421/kWh (CSIRO, GenCost 2020–21)</p>
</td>
<td>
<p>Production of low emissions steel is still at an early stage globally and in Australia. Reference indicator will be based on data reported in Australia’s annual Low Emissions Technology Statements</p>
</td>
<td>
<p>Production of low emissions aluminium is still at an early stage globally and in Australia. Reference indicator will be based on data reported in Australia’s annual Low Emissions Technology Statements</p>
</td>
<td>
<p>Reference indicator will be based on data reported in Australia’s annual Low Emissions Technology Statements</p>
</td>
<td>
<p>Soil carbon measurement for Emissions Reduction Fund projects cost around $30 per hectare per year</p>
</td>
</tr>
<tr>
<td>
<p>2.1.3</p>
</td>
<td>
<p>If a LDC or SIDS info on action</p>
</td>
<td colspan="7">
<p>Not applicable.</p>
</td>
</tr>
<tr>
<td>
<p>2.1.4</p>
</td>
<td>
<p>Target relative to the reference indicator</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
<td>
<p>As stated in the target cell above</p>
</td>
</tr>
<tr>
<td>
<p>2.1.5</p>
</td>
<td>
<p>Data used in quantifying the reference indicator</p>
</td>
<td>
<p>Annual State of the Hydrogen Report; analysis from research or commercial providers as available.</p>
</td>
<td>
<p>CSIRO annual GenCost reports; AEMO; analysis from research or commercial providers as available.</p>
</td>
<td>
<p>CSIRO annual GenCost reports; AEMO; analysis from research or commercial providers as available.</p>
</td>
<td>
<p>Analysis from research or commercial providers as available.</p>
</td>
<td>
<p>Analysis from research or commercial providers as available.</p>
</td>
<td>
<p>Analysis from research or commercial providers as available.</p>
</td>
<td>
<p>Results of Emissions Reduction Fund auctions and analysis from research or commercial providers as available</p>
</td>
</tr>
<tr>
<td>
<p>2.1.6</p>
</td>
<td>
<p>Updates to the values of the reference indicators</p>
</td>
<td colspan="7">
<p>The value of the reference indicator for each stretch goal may be updated to reflect improved data or methodologies, informed by an impact evaluation framework developed for the Technology Investment Roadmap. This will be clearly and transparently reported in Australia’s Biennial Transparency reports under the Paris Agreement and annual Low Emissions Technology Statements. The impact evaluation framework is detailed in the Low Emissions Technology Statement 2021 and will be continually reviewed and refined in line with the Roadmap’s adaptive approach.</p>
</td>
</tr>
<tr>
<td>
<p>2.2</p>
</td>
<td>
<p>Time frames</p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>
<p>2.2.1</p>
</td>
<td>
<p>Time frame for implementation</p>
</td>
<td>
<p>2020 to 2025–2030 (for steam methane reforming with CCS) and 2028–2035 (for renewable electrolysis)</p>
<p>*economically feasible now, but subject to offtake agreements, development approvals and adoption of a hydrogen Guarantee of Origin scheme.</p>
</td>
<td>
<p>2021 to 2030–2035</p>
</td>
<td>
<p>2020 to 2025–2030</p>
</td>
<td>
<p>2020 to 2030–2040</p>
<p>*economically viable in the late 2020s, but subject to capital development cycles</p>
</td>
<td>
<p>2020 to 2035–2040</p>
</td>
<td>
<p>2020 to 2025–2030 (Expected deployment timeframe)</p>
<p>*subject to offtake agreements and development approvals</p>
</td>
<td>
<p>2020 to 2025–2030</p>
</td>
</tr>
<tr>
<td colspan="2"></td>
<td colspan="7">
<p>A range is given for the timeframe for achieving each stretch goal under a ‘high technology’ scenario, with the start representing the earliest date the stretch goal could be met. Confidence in reaching the stretch goal increases towards the end of the range.</p>
</td>
</tr>
<tr>
<td>
<p>2.2.2</p>
</td>
<td>
<p>Single-year or multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
<td>
<p>Multi-year</p>
</td>
</tr>
<tr>
<td>
<p>2.3</p>
</td>
<td colspan="2">
<p>Scope and coverage</p>
</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>
<p>2.3.1</p>
</td>
<td>
<p>General description of Target</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
<td>
<p>Economic stretch goal</p>
</td>
</tr>
<tr>
<td>
<p>2.3.2</p>
</td>
<td>
<p>Sectors, gases, categories and pools covered</p>
</td>
<td>
<p>Energy; Industrial processes and product use</p>
</td>
<td>
<p>Energy</p>
</td>
<td>
<p>Energy</p>
</td>
<td>
<p>Industrial processes and product use</p>
</td>
<td>
<p>Industrial processes and product use</p>
</td>
<td>
<p>Energy; Industrial processes and product use</p>
</td>
<td>
<p>Land-use, Land-use change and forestry</p>
</td>
</tr>
<tr>
<td>
<p>2.3.4</p>
</td>
<td>
<p>Complete and continuous coverage</p>
</td>
<td colspan="7">
<p>Not applicable. These targets are economic stretch goals, all emissions reductions will be accounted for under Australia’s 2030 and 2050 targets.</p>
</td>
</tr>
<tr>
<td>
<p>2.3.5</p>
</td>
<td>
<p>Mitigation co- benefits</p>
</td>
<td colspan="7">