"We are putting the resources in (at Ballarat Goldfields) that are necessary to make a success of it and it's not impossible that Ballarat will produce more gold in the future than it did in the past," Prof Garnaut said.

"I'm not promising it but it's not impossible."

Prof Garnaut - who was the author of the Federal Government's Garnaut Climate Change Review - was guest speaker at the Committee for Ballarat's round table dinner on Thursday.

The Melbourne-based academic also said Ballarat could soon become a major player in Australia's battle against climate change.

"The skills that are needed are the same skills that are necessary for success in the resources industry, including mining, and Ballarat has a very good base of those, partly because of the professional and technical training at Ballarat University but also because of the

businesses that have existed here for 150 years," Prof Garnaut said.

"Ballarat, as a well established regional centre with good infrastructure and a stable labour force, does provide a base for some of these new industries that will be required to make a success of the economy when we are in the process of reducing emissions."