As a leading supplier of iron ore, coal and fossil gas for the industry, Australia must play an active and responsible role in decarbonising the sector. Emissions from the use of these commodities in steel-making are enormous, with emissions from iron ore use alone approximately double Australia’s total domestic emissions from all sectors. Viable technological pathways for producing ‘green iron and steel’ exist and continue to evolve, but considerable investment and policy support are required to deploy these and put the industry on track to reach net-zero emissions before 2050.

Developing a green iron and steel industry has the following key requirements: an adequate renewable energy supply and sufficient other renewable consumables, including renewable hydrogen; the right iron ore available at a globally competitive price and location; suitable infrastructure for heavy industry and export; governance that creates certainty of future industry regulation; financial and non-financial enablers that preferentially seed and protect emerging low-emissions industries; and, most important of all, the political courage and policy foresight to deliver a new Australian trading identity at a time of revolutionary industrial change, investment and opportunity.

This report sets out the actions Australia needs to take to become a global leader in green iron manufacturing and decarbonise the iron and steel industry.

Federal and state governments must coordinate to: 

• Establish an at least $10 billion domestic support package to decarbonise the existing iron ore and steel industry and prioritise the development of export-focused green iron projects.
• Revitalise and expand Australia’s Asian green iron and steel international strategic partnerships.
• Pursue international green iron and steel leadership.
• Better coordination of domestic and international, and Commonwealth, state and territory efforts