All power could be no-carbon by 2050

ALL of Australia's electricity demand could be sourced from renewable energy by 2050, a new report says.

The Australian National University report, commissioned by WWF Australia, found the nation could do so if fossil fuels were abandoned.

Report author Associate Professor Frank Jotzo said a switch from coal to "decarbonised electricity" was achievable. Despite a $2.5 billion pool under the Abbott government to pay polluters to reduce emissions, the report showed emissions reductions could be achieved more cheaply.

But the report was reliant on the rest of the world also taking action on emissions, after strong signals from China and the United States that both nations were planning to reduce emissions.