The Water Sector Emissions Transition Plan ensures an efficient path to net zero.
Water sector emissions reduction targets
The Victorian water sector is taking world-leading action to reduce its own emissions. In 2025, the Victorian water sector reached 2 major milestones:
beating its first emissions reduction target on the path to net zero
achieving its 100% renewable electricity target.
The sector’s investments in renewable electricity, energy efficiency and other innovative projects not only reduce emissions but create jobs and save water corporations money.
42.4% reduction in emissions by July 2025
✔ Achieved
The sector beat its emission reduction target to deliver a 45.5% reduction compared to baseline.
100% renewable electricity use by 2025
✔ Achieved
The sector has increased its renewable electricity use through investment in solar, biogas, wind, hydroelectricity and more.
93.7% reduction in emissions by 2030
On track
Our water sector is well on the way to meeting this target with innovative solutions and high‑integrity multi‑benefit carbon offsets.
100% (net-zero) reduction in emissions by 2035
On track
The government has delivered a new Water Sector Emissions Transition Plan that will guide efficient decisions, build critical skills and capitalise on innovation to reach net zero by 2035.
Statement of Obligations (Emissions Reduction)
Victoria first set a net zero emissions goal for the water sector in the state’s water plan, Water for Victoria. The Statement of Obligations (Emissions Reduction) details 5-yearly emissions reduction targets for each water corporation on the path to net-zero.
These ambitious targets place Victoria’s water sector alongside world leaders in emission reduction like the United Kingdom, Finland and Denmark.
The Victorian Water Sector Emissions Transition Plan sets out the next steps for the water sector in the journey to net zero.
It provides a clear pathway to address complex emissions from wastewater treatment, fuels, construction and the supply chain, while creating new opportunities for innovation, resource recovery and regional development.
The plan will help water corporations identify and implement innovative emissions reduction solutions that improve the resilience and cost efficiency of water services, protect the environment and support Victoria’s economy.
The plan also includes case studies of water corporation projects that increase renewable electricity use and cut greenhouse gas emissions.
The plan has 6 key outcomes, which support the vision for net zero emissions water and wastewater services:
An orderly and efficient net zero transition
Innovation and investment attraction in clean technologies
Circular economy outcomes and service improvements
Healthy Country, catchments and communities
A skilled, resilient and innovative water sector
Supply chain resilience and local green industries.
The plan is set out across 4 priorities. Click through the priorities below to read the 18 actions in the plan.
Actions
Better value emissions in decision making.
Improve sector guidance on the use of carbon offsets.
Prepare adaptive plans and identify opportunities at the largest wastewater treatment plants.
Trial a new reporting approach to better manage climate-related transition risks.
Strengthen and streamline the emissions reduction framework.
Actions
Identify the skills and training pathways needed for a net zero and circular water sector.
Assess feasibility of options to reduce wastewater emissions.
Review opportunities to decarbonise heavy machinery, trucks and generators.
Expand direct monitoring trials for wastewater emissions.
Undertake a sewer network emissions estimations and opportunities study.
Actions
Investigate and trial low carbon and circular technologies for biosolids.
Pilot emissions leak detection and repair study for advanced waste and wastewater management processes.
Investigate long-term targets to increase direct action on wastewater emissions.
Identify and monitor the largest sources of indirect (scope 3) emissions.
Develop baselines and reduction principles for indirect (scope 3) emissions.
Actions
Strengthen water sector partnerships and knowledge sharing arrangements.
Monitor and measure key outcomes.
Publish annual sector wide updates on successes, challenges and progress.
Victoria’s climate change strategy paves the way for climate action in Victoria for the next 5 years. It is supported by emissions reduction pledges which outline the Victorian Government’s actions to achieve interim and long-term emissions reduction targets.
The Water Sector Emissions Transition Plan is a key deliverable under the Whole of Victorian Government sector pledge 2026-30. The pledge also commits the Victorian government to partner with the water sector and Intelligent Water Networks to investigate and trial low-carbon and circular technology for biosolids. Delivery of the plan includes the 2026 round of the Water Minister's Climate Innovation Challenge.