This paper considers energy policy in Australia in the context of its considerable energy resources, climate change and a recent change in government. It examines the possible paths that future energy use and policy in Australia could take, including published projections based largely on a "business as usual" approach and projections based on a dramatic shift towards more efficient use of energy and renewable energy technologies. It also considers the various factors affecting future policy direction, including energy security, the advocacy in Australia for establishing nuclear electricity generation and other parts of the nuclear fuel-cycle, responses to climate change, and carbon sequestration. It concludes that while the Australian Government is currently reluctant to move away from a dependence on coal, and unlikely to adopt nuclear energy generation, a low-emissions future without waiting for the deployment of carbon capture and storage and without resorting to nuclear power is within reach. However, in the face of strong pressure from interest groups associated with energy intensive industry, making the necessary innovations will require further growth of community concern about climate change, and the development of greater understanding of the feasibility of employing low carbon-emissions options. Crown Copyright (C) 2009 Published by Elsevier Ltd. All rights reserved.