The report, Trends in energy intensity in Australian industry, reports on the factors affecting the amount of energy consumed in the five major sectors of Australian industry – manufacturing, services, agriculture, mining and construction – between 1989-90 and 2005-06.

“Energy intensity in Australian industry has been declining, resulting in savings in energy consumption as the Australian economy moves from more energy intensive industrial activities to less intensive services activities,” said Phillip Glyde, ABARE Executive Director, on releasing the report.

The report shows that output growth continues to be the main driver of increases in energy consumption for the industrial and commercial sectors.

If this had been the only factor, energy consumption in Australian industry would have been 14 per cent higher than actual consumption. However, structural shifts toward less energy intensive services are estimated to have reduced energy consumption relative to what it would have been in the absence of such shifts.

As part of the APEC Leaders’ Declaration in Sydney, in September 2007, a target was set for a reduction in energy intensity in member economies of at least 25 per cent by 2030, compared with the 2005 base year. This is equivalent to an annual reduction in energy intensity of 1 per cent. The report shows that against this target, Australian industry appears to be broadly on track.