Australia is among the top ten largest greenhouse gas emitters in the OECD. Over the past decade, it has managed to decouple GDP growth from the main environmental pressures. However, it has one of the most resource- and carbon-intensive OECD economies. Despite the increasing use of natural gas and renewable energy sources, the electricity mix remains heavily reliant on coal. Australia surpassed its Kyoto 2008-12 target and is on track to reach its 2020 climate target. Still, it needs to intensify efforts to reach its Paris Agreement goal. Adopting an integrated energy and climate policy framework for 2030 with an emission reduction goal for the power sector would avoid the projected rise in greenhouse gas emissions. Developing a long-term low-emission strategy, as Australia has committed to do, will help drive the transition.