In the past year, it has halved the growth in electricity demand, continued to increase its wind and solar energy production, and is in the process of developing emissions trading schemes to cover a quarter of a billion people.

The US is also doing well, although much of its improvement comes from a shift away from oil in favour of cheaper gas and a slower economy, rather than as a result of direct action on climate change.

That's the conclusion of the latest in a series of reports entitled "The Critical Decade" published by Australia's Climate Commission, and examining global action on climate change. The report focuses on the US and China, which together produce 37 per cent of the world's emissions. Earlier this month, the two nations issued a strongly worded statement pledging to work together to curb climate change and "set the kind of powerful example that can inspire the world".