Developing a competitive green iron sector can realise economic benefits for Australia and support its neighbours and partners to decarbonise their economies.
Australia has long been a reliable exporter of raw commodities.
Iron ore, in particular, remains one of Australia’s most valuable natural resources.
This, combined with Australia’s abundant wind and solar energy potential, provides a strategic advantage for moving beyond raw exports to lead in the export of value-added green commodities, like green iron.
Green iron can only become cost-competitive when produced at scale. Scaling up green iron production requires firm commitments from buyers, enabling producers to invest in production capacity. A balance must be struck between green iron demand and supply. One promising way to unlock demand for green iron is through an Advanced Market Commitment.
Embedding Australia’s renewable energy resources into value-added exports can accelerate emissions reductions while unlocking lasting economic growth.
This briefing paper covers:
- Seizing first-mover advantage in green iron
- Unlocking the green iron supply chain
- How Advanced Market Commitments can help scale demand
- Lessons from existing Advanced Market Commitments
- Tailored approaches for the Asia-Pacific market
- Challenges in decarbonising the steel supply chain
- Opportunities for Australia to lead.
Green iron is more than a climate solution – it is a strategic, economic and geopolitical opportunity.
Now is the time to act, and by combining strong policy with market intervention, green iron can take its place as a critical commodity – delivering emissions reductions, industrial strength and economic prosperity in a changing world.