PETROLEUM EMISSIONS DOWN JUST 1.3 PER CENT REPORT SYNOPSIS - PAGE TWO

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Embargoed 00:01-4 December 2009 PETROLEUM EMISSIONS DOWN JUST 1.3 PER CENT REPORT SYNOPSIS - PAGE TWO Greenhouse gas emissions from Australian petroleum use fell by 1.6 million tonnes or 1.3 per cent over the past 12 months according to a new report released today by The Climate Group. However, the fall was on the back of more substantial growth of 2.9 per cent the previous year (or 3.4 million tonnes) and came during the global financial crisis which curtailed economic growth and dampened consumer confidence. The Greenhouse Indicator Annual Petroleum Report tracks emissions from petroleum-based fuels across Australia during the 12 months from October 2008 September 2009, and compares these with similar figures for the previous two years. Total greenhouse emissions from petroleum fuels totalled 120.7 million tonnes this year or 20 per cent of Australia s total emissions according to the report. Automotive petrol saw the biggest absolute decrease in use and emissions of any fuel, despite a fall in price of between 14-16 per cent. During the last two years, petrol s share of the fuels market has decreased by almost two per cent, with diesel s share of the market rising by a similar amount. Rupert Posner, Australia Director of The Climate Group said that this year s dip in emissions was likely to be temporary: While it is good news that petroleum emissions have fallen this year, unfortunately, one of the main reasons for this is likely to be the global financial crisis, rather than any substantial changes in the way we are using petroleum products. This means that even this small decline in emissions is likely to be temporary and will be reversed once markets pick up again. Mr. Posner emphasised that petroleum emissions needed to start falling more substantially: There is no doubt that we need to see emissions from all sources falling much more quickly and this will involve changing our fuel-use habits. The good news is that we already know that this is possible. We have seen some inspirational examples of companies cutting fuel use and reducing their emissions. Logistics company Linfox, for example, has made huge progress in just two years. Through better use of its vehicles and staff training in eco driving, Linfox has reduced fuel use by 15 per cent, despite a 20 per cent increase in the distance its drivers have travelled. These efforts have, of course, also meant lower costs for the company so make perfect sense. This report shows that Australia needs more Linfox s to step up and show leadership in this area. Report synopsis (For summary tables of individual states and fuels, please see the appendix). The use of and resulting emissions from all petroleum fuels (liquid petroleum gas, petrol, diesel and other fuels) all fell this year with the exception of aviation fuel, emissions from which grew by 0.1 per cent. Automotive petrol saw the largest decrease in emissions of any of the major fuel types last year, of 1.7 per cent or 746,000 tonnes, representing a 1.3 per cent decrease in sales. This was despite a price fall of between 14 16 per cent this year and was on top of a similar decrease in petrol emissions the previous year (1.8 per cent). 1

Demand for, and emissions from diesel, the most popular petroleum-based fuel in Australia, fell less substantially this year, by 0.5 per cent or 276,000 tonnes. This reversed a substantial rise in demand and subsequent emissions of 7.5 per cent, or 3.5 million tonnes the year before, despite a spike in prices that year. Emissions from petroleum products fell in all states except for the Northern Territory. The greatest relative decline in emissions occurred in Tasmania, with a 3.8 per cent drop on last year, followed by Western Australia with a 3.2 per cent drop. New South Wales (including the Australian Capital Territory) is the largest greenhouse emitter from petroleum products in absolute terms with 34.5 million tonnes or 29 per cent of the country s petroleum emissions. The state is followed by Queensland (29.0 million tonnes, 24 per cent) and Victoria (24.6 million tonnes, 21 per cent). Tasmania is the smallest emitter (2.3 million tonnes, 2 per cent). The Northern Territory produces by far the most emissions from petroleum products per capita, at 18.23 tonnes per year, some 120 per cent greater than the next highest state, Western Australia (8.33 tonnes per person). Queensland has the next highest per capita emissions from petroleum products at 6.62 tonnes per person. All three states per capita petroleum emissions levels are greater than the per capita total carbon footprint for many European countries including France and Spain. New South Wales and Victoria, which combined hold approximately 60 per cent of Australia s population, emit 4.65 and 4.56 tonnes per capita respectively, lower than the Australian average of 5.5 tonnes per person. Tasmania has the lowest emissions per capita of all states at 4.5 tonnes per person. Ends. For more information contact Luke Muir on 0433 059 905/03 9668 5795 or Rupert Posner on 0438 989 420. NOTE TO EDITORS: For a summary table, please go to the appendix at the bottom of this document For a full copy of the report, please contact Luke Muir Time scale This report examines the use of petroleum products and the resulting greenhouse gas emissions that these produced during the 12 month period from October 2008 September 2009, and compares this with the same period for the previous two years. About the Weekly Greenhouse Indicator The Climate Group has tracked greenhouse emissions from energy use in Victoria, New South Wales, Queensland and South Australia on a weekly basis since the beginning of 2007. The Greenhouse Indicator provides accurate and real-time information on greenhouse gases produced each week from energy use. It includes the major sources of greenhouse emissions that can be tracked accurately each week and is a unique tool designed to bring greater understanding to the issue of climate change and to help track greenhouse gas emissions in selected Australian states. It was developed with advice from some of Australia s best experts in the field. For more details and an explanation of the Indicator s methodology visit www.theclimategroup.org/indicator About The Climate Group The Climate Group (www.theclimategroup.org) is an independent, not-for-profit organisation that works internationally with government and business leaders to advance climate change solutions and accelerate a low carbon economy. The Climate Group was founded in 2004 and has offices in the UK, USA, China, India and Australia. We get business and government leaders talking CEOs talking to heads of state, senior VPs to policymakers. And we concentrate on building the economic case for taking action against climate change. Because we believe that s the best way to make change happen. We broker partnerships and harness investment in low-carbon technologies. Because we can only tackle the climate issue if business, government and civil society work together. 2

We share practical ideas so others can be inspired and learn from them. We run leadership groups and webinars on issues like carbon management and energy efficiency. We focus on game changing initiatives, because they re the ones that will make the biggest difference in the least amount of time. We act independently with no political agenda or any vested interest. And our plans are flexible, because the climate change challenge is evolving every day. 3

ANNUAL PETROLEUM REPORT - APPENDIX Emissions (in tonnes) by fuel type and state (Oct 08 Sep 09) LPG Petrol Aviation fuel Diesel Other Total NSW/ACT Emissions 1,863,512 14,178,753 6,867,325 10,645,603 980,391 34,535,585 % Change (09 vs. 08) 4.4% -0.2% -2.9% 3.5% -29.5% -0.6% % Change (08 vs. 07) -8.8% -2.5% 10.8% 2.6% -2.6% 1.1% VIC Emissions 2,157,918 10,726,272 2,784,287 7,882,645 1,076,260 24,627,382 % Change (09 vs. 08) -3.9% -4.4% 5.5% -2.8% 5.0% -2.4% % Change (08 vs. 07) -6.7% -1.4% 1.5% 7.4% 30.4% 2.1% QLD Emissions 888,280 10,076,050 3,523,053 14,310,826 207,341 29,005,549 % Change (09 vs. 08) -6.1% -3.3% 4.0% 1.3% -22.7% -0.5% % Change (08 vs. 07) -7.8% -0.9% 12.4% 5.8% -27.7% 3.1% SA Emissions 581,392 3,140,317 510,754 3,407,675 2,187 7,642,325 % Change (09 vs. 08) -0.5% 0.3% -17.1% 2.8% -83.7% -0.3% % Change (08 vs. 07) 9.7% -2.7% 15.4% 6.9% 88.3% 3.6% WA Emissions 505,635 4,791,797 1,886,824 10,844,215 494,067 18,522,539 % Change (09 vs. 08) -2.3% 3.1% 1.4% -5.9% -15.2% -3.2% % Change (08 vs. 07) 4.3% -2.1% -11.2% 13.0% 14.7% 6.0% 4

TAS Emissions 100,995 1,041,214 102,352 1,005,137 7,114 2,256,812 % Change (09 vs. 08) -2.3% -1.9% 12.2% -6.7% -40.7% -3.8% % Change (08 vs. 07) 3.0% -3.8% 14.7% 9.0% -79.8% 0.6% NT Emissions 43,186 358,128 408,373 1,876,322 1,380,813 4,066,821 % Change (09 vs. 08) -4.7% -1.6% 1.9% 3.5% 0.2% 1.7% % Change (08 vs. 07) 36.6% 3.9% -1.4% 19.6% -3.0% 7.3% Aust Total Emissions 6,140,918 44,312,531 16,082,968 49,972,424 4,148,173 120,657,014 % Change (09 vs. 08) -1.4% -1.7% 0.1% -0.5% -11.2% -1.3% % Change (08 vs. 07) -4.9% -1.8% 6.3% 7.5% 2.0% 2.9% Sales (kl) by fuel type and state (Oct 08-Sept 09) LPG Petrol Aviation fuel Diesel Other Total NSW/ACT 1,188,159 6,051,396 2,684,933 3,942,816 336,348 14,203,652 VIC 1,371,989 4,515,551 1,089,278 2,919,498 369,252 10,265,568 QLD 570,501 4,308,337 1,379,630 5,300,306 72,747 11,631,521 SA 370,257 1,319,461 200,383 1,262,102 851 3,153,054 WA 322,090 2,013,360 739,345 4,016,376 169,367 7,260,538 TAS 65,176 437,485 40,216 372,273 2,768 917,918 NT 27,814 150,474 160,636 694,934 473,054 1,506,912 Aust Total 3,915,986 18,796,064 6,294,421 18,508,305 1,424,387 48,939,163 5

Population and petroleum emissions (in tonnes) per capita Population ('000s) Tonnes per capita 2009 2008 2007 2009 2008 2007 NSW/ACT 7,426.4 7,307.9 7,226.1 4.7 4.8 4.8 VIC 5,402.6 5,290.7 5,201.3 4.6 4.8 4.8 QLD 4,380.4 4,267.7 4,169.1 6.6 6.8 6.8 SA 1,618.2 1,599.6 1,582.4 4.7 4.8 4.7 WA 2,224.3 2,156.7 2,101.0 8.3 8.9 8.6 TAS 501.8 496.8 492.7 4.5 4.7 4.7 NT 223.1 218.2 213.5 18.2 18.3 17.5 Aust Total 21,799.1 21,340.1 20,988.5 5.5 5.7 5.7 N.B. Population figures are as of March each year, the mid-point of each 12 month period Source: ABS - Australian Bureau of Statistics, 3101.0 Australian Demographic Statistics, Mar 2009 Average unleaded petrol price by state and year (c/l) State 2006-07 2007-08 2008-09 NSW/ACT 120.9 144.6 121.1 VIC 121.3 144.2 122.5 QLD 114.6 136.3 116.8 SA 119.8 143.3 120.3 WA 121.1 141.8 119.3 TAS 124.8 149.8 127.1 NT 131.8 154 132.1 Note: capital city metro area prices used only Australia Market share by fuel type by year Year totals LPG Petrol Aviation Diesel Other Oct06- Sept07 8.6% 40.0% 12.3% 35.8% 3.3% Oct07- Sept08 8.0% 38.4% 12.7% 37.6% 3.2% Oct08- Sept09 8.0% 38.4% 12.9% 37.8% 2.9% 6