Record-breaking levels of wind and solar energy have helped to cut Australia’s emissions, a report has found, significantly reducing the nation’s reliance on gas and coal.

But emissions from steel production, domestic flights and diesel-powered road transport are still rising, and bigger cuts will be needed to meet the 2030 climate target.

An update to the National Greenhouse Gas Inventory revealed the trends on Friday, and also showed Australia had reduced its emissions by 25 per cent compared to 2005.

The findings follow widespread adoption of solar panels, household batteries and electric vehicles, but also come after criticism of some large-scale renewable energy projects and transmission infrastructure in regional areas.

The government report analysed greenhouse gas emissions in the year to March 2026, and found Australia had cut 7.5 million tonnes of carbon emissions compared to the previous year — a reduction of 1.6 per cent.