Australia could unlock a major wave of clean industrial investment if stronger policy measures are introduced to stimulate demand for low-carbon commodities, according to a new report from the Mission Possible Partnership (MPP) and the Industrial Transition Accelerator (ITA).
The briefing, Clean industry spotlight: Turning Australia’s natural advantage into industrial leadership, suggests the country could realise more than AUD290 billion in investment across emerging clean industrial sectors by accelerating the transition beyond traditional exports such as iron ore, coal and gas.
With Australia poised to lead negotiations at COP31, the briefing identifies a growing pipeline of projects aimed at producing low-emissions metals, fuels and other clean industrial commodities. In total, around 70 clean industrial developments are currently under consideration across Australia, making it one of the largest project pipelines globally outside China and the United States.
Within this pipeline are 14 projects focused on green metals production, including nine green steel or iron developments and five aluminium initiatives. While many remain at early stages, around 15–20 projects across the wider clean industry landscape are already in advanced development.
This would be driven by Australia’s strong renewable energy potential and abundant mineral resources, which give it a significant opportunity to build globally competitive low-carbon industrial supply chains.
However, the report highlights that many projects remain stalled by a lack of clear market demand and high upfront capital costs.
It argues that stronger policy signals could accelerate development and unlock private investment. These include public procurement programmes to create early demand for low-emissions materials, mandates requiring the use of clean commodities, and revenue certainty mechanisms such as carbon contracts or price guarantees.
Such measures could reduce investment risk while encouraging industrial buyers to commit to low-carbon supply chains.
For further information, follow this link:
https://buildcleannow.missionpossiblepartnership.org/country-briefings/australia/
“Australia is home to one of the largest clean industrial pipelines in the world. This potential can translate into huge economic and social benefits across the country, while supporting the path to net zero."
Rachel Howard, director of APAC at Mission Possible Partnership.
The briefing also points to growing momentum from both government and industry. Australia’s Future Made in Australia agenda has committed AUD22.7 billion over the next decade to strengthen the country’s competitiveness in clean industrial sectors. At the same time, companies including Fortescue, Progressive Green Solutions and Green Steel WA are progressing projects aimed at producing green iron using renewable energy.
Rachel Howard, director of APAC at Mission Possible Partnership, said the scale of Australia’s project pipeline places the country in a strong position to capitalise on the global shift toward low-carbon industry.
“Australia is home to one of the largest clean industrial pipelines in the world. This potential can translate into huge economic and social benefits across the country, while supporting the path to net zero.
“To achieve that, we need true collaboration between government, industry and finance to create a blueprint that can be replicated around the world.”
The report concludes that stronger demand signals and co-ordinated action across government, industry and finance will be key to turning proposals into operating plants and positioning Australia as a leader in the emerging global market for clean industrial commodities.