Addressing issue of Green House Gas emissions with climate change is becoming one of the critical social, economic, political and ecological issues for governments and businesses. Australia's per capita emission due to electricity is five times than the world average. This study explores government and firms especially resource sector strategic initiatives to date, and how foresight will develop capability in capitalising the changing climate change challenges, structure adaptation process and how different firms' strategies enhance sustainable innovation and knowledge management. Due to short–termism, and lack of emissions target strategy and carbon trading mechanism, country's climate strategic change initiative is fairly reactive and slow in searching this as an opportunity. Hence, a strategic climate change framework developed to exploit opportunities in carbon constrained world.
Keywords: climate change, GHG emissions, greenhouse gases, strategic foresight, carbon economy, strategic thinking, innovation, sustainable development, strategic planning, Australia, energy and resource industries, sustainability, emissions targets, short–termism, industry foresight