Abstract
In the past decade, Australia’s approach to climate change policy has been erratic. Both major political parties announced support for a domestic emissions trading scheme (ETS) in 2007, but bipartisan agreement evaporated in 2009. An ETS was established in 2011, but was repealed in 2014. The Commonwealth Government has subsequently introduced a Direct Action climate change policy. There is absence of bipartisan agreement about the best long-term policy approach. This extended abstract provides some insights for future Australian climate change policy using the lessons provided from previous policies and international experience. Strategically, Australia would be well placed to consider how best to manage the risks associated with potential substitution of coal and gas in power generation globally, given the strategic importance of these export industries for Australia.