Translating concern about climate change into practical, effective and politically feasible policy action is a key challenge for contemporary governments. In Australia, the government's failure to launch ‘the transition to a low-carbon economy’ is reshaping the political landscape. This article argues that progress has stalled because politicians emboldened by the moral challenge of climate action, but schooled in market-based policy solutions, have not acknowledged or made provision for the regional impacts of the economic transformation they propose.