Fact sheet - IPPU Plan

The Tasmanian Government has prepared the first five-year Emissions Reduction and Resilience Plan for the industrial processes and product use (IPPU) sector, in consultation with business, industry and the community.

The IPPU Plan brings together new, existing, and ongoing projects in the sector that will help us reduce emissions and build resilience to the changing climate.

Focus areas of the Plan

1. We will support research, development and the adoption of existing and emerging decarbonisation technology.
2. We will support the market for local lower emissions products.
3. We will support the sector in the transition to a lower emissions economy.
4. We will build resilience to the impacts of climate change.
5. We will drive action through partnerships and collaboration.

In 2024, government staff met with key industry and business stakeholders to develop the Plan. The draft Plan was released in late 2024 for public comment. Feedback from consultation has been used to prepare the Plan.

Key new actions

• Work with partners to support research and development to reduce emissions across the IPPU sector.
• Hold roundtable meetings to share information and learnings about existing technology options to decarbonise.
• Collaborate with partners to map the strategic transition requirements for Tasmanian businesses to reduce emissions from their energy use and industrial processes to support government and industry to plan for the transition to a lower emission economy.
• Expand engagement with Tasmanian major industrial businesses to support our large emitters to reduce emissions and achieve their decarbonisation plans.

The IPPU Plan also includes future funding priorities to guide action over the next five years.

These new commitments are in addition to the extensive funding available through the Advanced Manufacturing Action Plan 2028 to support manufacturing businesses and develop the Tasmanian workforce.

Snapshot of the IPPU sector

Greenhouse gas emissions

The manufacturing sector contributes over $2 billion annually to Tasmania’s Gross State Product, and provides high paying, skilled jobs. The manufacturing sector directly employs 19,800 people in Tasmania and underpins the economies of large and small communities across the state.

Tasmania has six major industrial facilities that each have scope 1 emissions over 100,000 tonnes of carbon dioxide equivalent per year. Tasmania’s IPPU sector makes up 19 per cent of total emissions, excluding the Land Use, Land Use Change and Forestry (LULUCF) sector.

The IPPU sector includes direct emissions from a range of chemical processes used to manufacture products, and also includes the use of synthetic gases and fossil fuels for non-energy use.

When we measure emissions, there is significant overlap between the IPPU and energy sectors. Emissions associated with stationary energy and the consumption of fossil fuels used in industrial production processes are accounted for in the energy sector plan, while the emissions from the processes themselves are accounted for in the IPPU sector. The IPPU Plan considers initiatives that lead to reduced emissions from both stationary energy use and industrial processes where possible.

Find out more about Tasmania’s greenhouse gas emissions from IPPU and other sectors in our annual greenhouse gas report.

Climate-related risks and opportunities

Changes in the climate will increase risks for the IPPU sector in Tasmania. Changes include an increased frequency of significant weather events, rise in temperatures, and a rise in annual rainfall.

The impacts of the changing climate can damage physical infrastructure and assets,and create hazardous working conditions for workers. Many Tasmanian industrial businesses are in coastal regions, and coastal erosion and a rise in sea levels can potentially damage ports and wharves, causing supply chain disruption for product distribution.

The global transition to low emissions brings both risks and opportunities for Tasmania’s manufacturing businesses. For example, there is an increasing expectation from markets and consumers for businesses to reduce emissions and create environmentally and socially responsible products.

There are opportunities for Tasmania to benefit from the development of new technologies such as a green hydrogen (hydrogen produced using renewable energy) industry, which could support decarbonisation of the IPPU sector.

Find out more about the Tasmanian Government’s action to build resilience to the impacts of climate change in our response to Tasmania’s Risk Assessment for Climate Change 2024.