In the last briefing, we looked at transport emissions. But that's just one key indicator. Another is energy intensity. Let's dive in ...
Why energy intensity matters
Energy intensity is the power we need to get a specific output. When it comes to transport, that output is moving people and stuff. Energy efficiency means we use less power to get the same result.
The International Energy Agency (IEA) says improving energy efficiency is one of the quickest and cheapest ways to reduce emissions.
Transport is the second most energy-intensive industry in the Australian economy. Manufacturing is first. Mining uses more energy in absolute terms but its 'intensity' is lower because it uses less energy to produce a unit of GDP.
Chart below: Energy Intensity by Industry (Gigajoules per Gross Value Added (GVA), source: ABS).
The big picture
Cars and trucks are the biggest absolute emitters and the most energy intensive transport options.
Aviation accounts for a small share of emissions but has big energy needs, making it one of the most challenging sectors to decarbonise. On top of that, demand for flying is still recovering following the Covid-19 pandemic and expected to grow.
Chart below: Energy consumed (Petajoules, source: DCCEEW).
How we move people
Transport is about moving people and stuff. When it come to moving people, Australia prefers cars and planes.
Chart below: Passenger transport activity (in Passenger-Kilometres (PKM), source: BITRE)
How we move stuff
When it comes to moving stuff, Australia prefers trucks and rail.
Trucks have exploded as Australia's transport of choice for non-bulk freight. That's a lot of Amazon parcels on our roads.
Chart below: Non-bulk freight transport activity (in Billion Tonne-Kilometres (TKM), source: BITRE)
Meanwhile, rail is carrying most of the country's bulk freight. It's the mining and resource sector's transport of choice.
Chart below: Bulk freight transport activity (in Billion Tonne-Kilometres (TKM), source: BITRE)
Bring it all together
This data gives us a picture of transport energy intensity. That is, how much energy is used to achieve these Passenger- and Tonne-Kilometres?*
In passenger transport, aviation is the most energy intensive, although it has improved thanks to more efficient aircraft and engines. But the IEA says efficiency improvements are struggling to keep up with growing demand to meet Net Zero.
Chart below: Energy intensity for passenger transport (PJ/PKM (Petajoules per Passenger-Kilometre), source: DCCEEW / BITRE)
In freight transport, road is clearly the most emissions-intensive option.
Chart below: Energy intensity for freight transport (PJ/TKM (Petajoules per Billion Tonne-Kilometres), source: DCCEEW / BITRE)
What we're tracking
If our goal is to reduce emissions while still moving people and stuff, there are two clear possibilities:
- Switch to transport options that use less energy (which requires infrastructure and incentives);
- Make our favoured transport options more energy efficient (which requires new technology).
- Whichever way we go, these charts will tell the story.
What we're reading
A couple of pieces from the wonky worlds of finance and law:
- The UN's Global Climate Litigation Report shows Australia has the most climate litigation per capita in the world, with 127 cases filed since 1990.
- The RBA's Head of Domestic Markets said in a speech that Australia must improve improve data and transparency around climate risks and sustainability to help financial markets align investment with climate goals.