Australia's iron ore exports could drop by 50% without green transition, warns CEF

• Australia's annual $138-billion iron ore revenue at risk
  
  
• CEF calls for "National Green Iron and Steel Strategy"
  
  

Mysteel Global: Australia's iron ore exports could plummet by half if the country lags in adopting green iron production, projects a Climate Energy Finance (CEF) report. As major ore buyers such as China decarbonise and prioritise low-emission supply chains, Australia's current $138 billion annual iron ore revenue faces significant risks.

The report outlines a potential to double export revenues to $250 billion annually if Australia embraces green iron production. However, its reliance on low-grade hematite ore requires technological advancements to meet the high-grade standards necessary for low-carbon steel production.

This shift also represents a major environmental opportunity. Steelmaking contributes 6.7% of global CO2 emissions, but adopting green iron could cut global emissions by 1 billion tonnes (bnt) annually, more than double Australia's current domestic emissions.

To secure its position, CEF urges the implementation of a National Green Iron and Steel Strategy, advocating investments in renewable energy, green hydrogen, and research into green steel technologies. Strengthening international partnerships, especially in Asia, and introducing incentives like production tax credits will be critical to positioning Australia as a leader in low-emission steel supply chains.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.