Decarbonisation pathways

As in previous years, the CEFC is careful not to claim that this abatement occurs independently of other policy measures, such as government grants or procurement settings, or regulatory settings such as the Renewable Energy Target.

Projects we have invested in are forecast to avoid 7.9 Mt CO₂ of emissions in the year 2030, up from a forecast 7.1 Mt CO₂ last year, factoring new investment commitments made in 2020–21.

To facilitate comparability, we report avoided emissions based on a horizon year of 2030, consistent with Australia’s biennial reporting to the United Nations Framework Convention on Climate Change. The CEFC financed projects, and the emissions they are expected to avoid, will play an important role as Australia seeks to meet and exceed its 2030 emissions reduction target of a 26 per cent to 28 per cent reduction on its 2005 emissions level. Meeting the target will require emissions to fall by some 50 Mt CO₂ annually from 499 Mt CO₂ in 2020¹ to between 443 and 455 Mt CO₂-e in 2030².

In assessing our impact on emissions reduction, the CEFC considers only those projects where we have a direct abatement impact, such as through our investments in additional renewable energy generation. As demonstrated in the 2020–21 year, the CEFC is increasingly investing in significant decarbonisation projects where abatement is not readily measurable, including transmission, storage and grid balancing projects. These strategic grid-related projects are an essential precursor to enable future renewable generation to access the grid. These investments complement our direct abatement activities and will facilitate future investment in the decarbonisation of the electricity grid as well as the broader economy.