Conventional energy consumption such as coal, natural gas, and oil is a source of deteriorating environmental sustainability as well as a severe challenge to the green environment. The present paper explores the nexus between CO2 emissions, energy imports, energy intensity, and power generation from renewable and non-renewable energies from 1990 to 2021 in Australia. Based on the ARDL model, the findings reveal that energy imports and power generation from non-renewable energy sources show an adverse effect on the green environment. A 1% increase in conventional energy imports leads to an 11% increase in CO2 emissions. Similarly, a 1% increase in energy generation from conventional sources will increase CO2 emissions by 45%. On the other hand, lower energy intensity and power generation from renewable sources reveal a positive effect on environmental quality. A 1% increase in energy intensity will decrease CO2 emissions by 92% while energy generation from non-conventional sources by 15%. Most interestingly, energy intensity reveals the foremost position among all the selected variables to decarbonize and effectively transform conventional energy to clean and green energy production and utilization. The robustness test outcomes confirm the results of the empirical output. Furthermore, this study suggests that governments and policymakers should focus on the adaptation of lower energy intensity for the purpose to reduce CO2 emissions and promote a clean and green environment. Finally, power generation from renewable energy sources plays an inevitable role which ultimately helps environmentally sustainability in Australia.