This chapter highlights progress made in decoupling economic activity from environmental pressures in Australia since 2005. The chapter presents the main economic and social developments. It then reviews Australia’s progress in reducing the energy and carbon intensity of its economy, in making the transition to a resource‑efficient economy and in managing its natural asset base. The chapter also summarises key policy developments in areas including energy, climate change, air, water and biodiversity.

This chapter evaluates the environmental governance and management of Australia since the last OECD Environmental Performance Review. It provides an overview of the institutional framework, then discusses the regulatory framework and briefly summarises key developments in specific areas such as air quality, water and waste management. The chapter examines the Australian approach to environmental permitting, compliance and enforcement before discussing environmental democracy, public participation and access to justice.

Australia's economy has undergone steady growth and a general decoupling of environmental pressures. This chapter reviews efforts to mainstream environmental considerations into economic policy and promote green growth. It analyses progress in using economic and tax policies to pursue environmental objectives and discusses environmentally harmful subsidies. The chapter examines efforts to scale up measures to promote low-carbon energy and transport infrastructure and support eco-innovation as a source of economic and employment growth. It also reviews progress in mainstreaming environment in development co-operation and trade.