The resources sector generated about 22% of all scope 1 emissions in Australia in 2023–24 (DCCEEW 2025a).
Scope 1 emissions are direct greenhouse gas emissions released into the atmosphere as a direct result of the activities at a facility. The RSP focuses on scope 1 emissions, as they are under the control of resources facilities.
Scope 2 emissions are indirect, for example emissions generated from an external electricity grid to provide the electricity to power a resources facility. Scope 2 emissions for the resources sector will be addressed through the outcomes of the Electricity and Energy Sector Plan.
Reducing the sector’s contribution to national emissions while continuing to supply essential commodities to the global decarbonisation challenge, is key to achieving Australia’s climate targets for 2030, 2035 and 2050. A breakdown of scope 1 emissions in 2023–24 by sub‑sector is seen below.
Resources sector emissions, 2023–24 by sub‑sector (%)
Source: Data from Australia’s National Greenhouse Gas Inventory December 2024, DCCEEW.
Another way to consider emissions in the sector is in relation to its source. Emissions within the resources sector can be classified as being:
- Fuel combustion emissions which are emissions produced to power vehicles and equipment on extraction sites. The major sources of fuel combustion emissions in the sector are from diesel used in internal combustion engines (on‑site vehicles and equipment) and remote power generators. They also include natural gas used in stationary energy generators in places like gas liquefaction and processing facilities.
- Fugitive emissions are released to the atmosphere during exploration, extraction, production and processing of energy commodities. Fugitive emissions typically arise from leaks, venting and flaring, and the release of gases from geological formations, such as methane escaping from coal seams during mining.
A breakdown of scope 1 emissions by type in 2023–24 is seen below.
Resources sector emissions, 2023–24 by emissions type (%)
Source: Data from Australia’s National Greenhouse Gas Inventory December 2024, DCCEEW.
Emissions by sub-sector
Production of energy commodities is the greatest source of greenhouse gas emissions in the sector, followed by production of minerals. (Note: Carbon dioxide and methane are the 2 largest sources of greenhouse gas emissions in Australia. Sector emissions of nitrous oxide and other greenhouse gases reportable under the United Nations Framework Convention on Climate Change and Paris Agreement comprised approximately 0.5 Mt CO2‑e in 2023–24.)
Minerals
On‑site equipment and vehicles (e.g. drills, haul trucks, excavators and auxiliary equipment), powered by diesel, cause most fuel combustion emissions in minerals production.
While operating practices across the minerals sector are broadly similar, the scale of emissions from iron ore operations is significantly higher due to the sheer volume of production, especially when compared to Australia's existing strategic materials and critical minerals outputs (DISR 2025).
The minerals sub‑sector is currently developing capacity for further processing, which can be energy intensive. The emissions activity from new processing activities will be partially offset by improved energy performance, which includes electrification and integration of renewable energy generation.
Fugitive emissions within the sub‑sector are minimal, for example gas leaks and gases released from chemical reactions.
Oil and gas
The bulk of fuel combustion emissions in the oil and gas sub‑sector come from liquefying gas into LNG (using turbines, compressors, and other specialised equipment, commonly known as ‘LNG trains’), and from gas to power on‑site equipment during extraction activities (Advisian 2022).
Venting and flaring of natural gas and its by‑products also contribute to emissions in the gas value chain. Gas reservoirs often contain embedded carbon dioxide, which must be stripped during processing, because it cannot be liquefied or transported alongside saleable gas. The stripped carbon dioxide is either discharged or ‘vented’ into the atmosphere (as fugitive emissions), or captured and reinjected underground for permanent geological storage via carbon capture and storage (CCS).
Flaring involves igniting the released hydrocarbons and process by‑products, converting methane to mostly carbon dioxide, which has a lower global warming potential than methane. Venting and flaring can be undertaken for safety, operational and economic reasons.
Coal
Fuel combustion emissions in coal mining are typically produced through diesel and petrol consumption in heavy mining equipment (e.g. for drilling, hauling and blasting), as well as during gas flaring activities, and gas used for on‑site energy generation (CER 2024).
Fugitive emissions in coal mining are predominantly methane (95%) (CCA 2024b). These emissions are the result of the fracturing of gas‑bearing strata when coal is extracted (CER 2024).
Underground coal mines generate 60% of fugitive emissions in the sub‑sector, with most methane released as ventilation air methane (VAM). Open‑cut mines also contribute, though typically at lower concentrations (DCCEEW 2025a).