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10 requirements to build an export-scale green iron industry in Western Australia

Forging Our Future sets out the ten requirements needed to build a green iron industry in WA quickly.

Standing up an export-scale green iron industry in Western Australia will safeguard Australia’s iron export industry, create tens of thousands of secure jobs, and significantly reduce global emissions. But it won’t happen by chance.

Australia becoming the world’s top green iron producer will require the Commonwealth and Western Australian governments, industry and workers to apply the lessons of how rapid industrialisation has been achieved in the past.

Western Australia is the world’s largest iron ore producer, mining more than 860 million tonnes of iron ore in 2023 equivalent to 39% of global supply.1 Royalties from the iron ore industry account for 85% of WA’s royalty revenue2 and for a quarter of the WA government’s general revenue. Nationally, iron ore is Australia’s single largest export, worth $136bn in 2023 – 20% of Australia’s exports by value3 and 33% of resource and energy commodity exports in 2023-244.

However, iron ore mining, processing, and manufacturing into iron and steel products is extremely emissions intensive. Global steel-making emissions contribute 7-9% of total global emissions in any given year.5 A net zero world will need to have almost completely decarbonised steel production. Because of this, international steelmakers are investing in new non-WA supplies of ore as the bulk of what is exported from the Pilbara is not compatible with the predominate existing green steel technologies.

The world must urgently decarbonise, but this puts Australia’s largest export industry, in its current form, at risk. Without policy support and targeted investment by the Commonwealth and Western Australian governments, the backbone of our export economy is likely to collapse. If the WA iron ore industry isn’t properly prepared for the fast-arriving low-emissions economy, Australians risk significantly lower standards of living and our country becoming a poorer place.

Almost every major iron and steel producer in the world today was initially established as a state-owned enterprise with a clear national objective underpinning their creation. The speed and scale of industrial development required to reduce emissions and secure a green iron industry in Australia means we need to look at what has worked in the past and build on those successes to meet the challenges of today.

Australia becoming the world’s top green iron producer will require the Commonwealth and Western Australian governments, industry and workers to apply the lessons of how rapid industrialisation has been achieved in the past. We have to partner together to achieve scale quickly.

If we fail to do so, Australia’s prosperity and continued high standards of living are at risk, and the world will likely fail to keep global warming below 1.5C.

Importantly, we show how the establishment of a major new joint venture, the Australasian Green Iron Corporation, as a 21st-century partnership between the Western Australian and Commonwealth governments, iron ore miners, the steel industry, and our key trading partners is the fastest and lowest-risk route to a large- scale green iron industry in WA.

Forging Our Future includes 3 complementary scenarios that can enable the building of a large- scale green iron industry:

1. Domestic green iron consumption

The first scenario sees green iron production commence in 2026 with a goal to provide 100% green iron for Australia’s steel production within 10 years. This will create an immediate green iron market and demonstrate Australia’s capacity to produce green iron for investors and trading partners.

2. Green iron exports for South Korea, Japan and Taiwan

Starting with initial green iron exports in 2028 to South Korea, Japan and Taiwan. This scenario builds to meet 70% of the green iron demand of our renewable energy- constrained trading partners by 2040.

3. Top and tail China’s green steel transition

Starting exports to China in 2033 will enable Australia to help provide top and tail green iron exports that will improve China’s capacity to decarbonise its domestic steel industry, the largest in the world.

If delivered in parallel, these three scenarios would:

  • Produce 122 million tonnes of green iron per year by 2040 from approximately 40 DRI plants with an average capacity of 4 mtpa
  • Over the 14 years produce:
  • $380bil in GDP ($27bil per year)
  • $350bil in real income ($25bil per year)
  • $167bil in Commonwealth and WA state taxation, ($11.9bil per year)6
  • Develop a new Western Australian export industry worth $340.2B ($76bil in exports in 2040)
  • Create 24,000 ongoing jobs in WA, with an additional 150,000 construction jobs created over 14 years – or an average of 11,000 full-time construction jobs per year
  • Drive down emissions from Australia’s and our region’s steel industry with a reduction of 274 MtCO2-e of emissions per annum in 2040 – equivalent to half of Australia’s annual national emissions.

Report: Forging our Future

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Climate Change

Big fishing nations secure last-minute seat to write rules on deep sea conservation

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As a treaty to protect the High Seas entered into force this month with backing from more than 80 countries, major fishing nations China, Japan and Brazil secured a last-minute seat at the table to negotiate the procedural rules, funding and other key issues ahead of the treaty’s first COP.

The Biodiversity Beyond National Jurisdiction (BBNJ) pact – known as the High Seas Treaty – was agreed in 2023. It is seen as key to achieving a global goal to protect at least 30% of the planet’s ecosystems by 2030, as it lays the legal foundation for creating international marine protected areas (MPAs) in the deep ocean. The high seas encompass two-thirds of the world’s ocean.

Last September, the treaty reached the key threshold of 60 national ratifications needed for it to enter into force – a number that has kept growing and currently stands at 83. In total, 145 countries have signed the pact, which indicates their intention to ratify it. The treaty formally took effect on January 17.

    “In a world of accelerating crises – climate change, biodiversity loss and pollution – the agreement fills a critical governance gap to secure a resilient and productive ocean for all,” UN Secretary-General António Guterres said in a statement.

    Julio Cordano, Chile’s director of environment, climate change and oceans, said the treaty is “one of the most important victories of our time”. He added that the Nazca and Salas y Gómez ridge – off the coast of South America in the Pacific – could be one of the first intact biodiversity hotspots to gain protection.

    Scientists have warned the ocean is losing its capacity to act as a carbon sink, as emissions and global temperatures rise. Currently, the ocean traps around 90% of the excess planetary heat building up from global warming. Marine protected areas could become a tool to restore “blue carbon sinks”, by boosting carbon absorption in the seafloor and protecting carbon-trapping organisms such as microalgae.

    Last-minute ratifications

    Countries that have ratified the BBNJ will now be bound by some of its rules, including a key provision requiring countries to carry out environmental impact assessments (EIA) for activities that could have an impact on the deep ocean’s biodiversity, such as fisheries.

    Activities that affect the ocean floor, such as deep-sea mining, will still fall under the jurisdiction of the International Seabed Authority (ISA).

    Nations are still negotiating the rules of the BBNJ’s other provisions, including creating new MPAs and sharing genetic resources from biodiversity in the deep ocean. They will meet in one last negotiating session in late March, ahead of the treaty’s first COP (conference of the parties) set to take place in late 2026 or early 2027.

    China and Japan – which are major fishing nations that operate in deep waters – ratified the BBNJ in December 2025, just as the treaty was about to enter into force. Other top fishing nations on the high seas like South Korea and Spain had already ratified the BBNJ last year.

    Power play: Can a defensive Europe stick with decarbonisation in Davos?

    Tom Pickerell, ocean programme director at the World Resources Institute (WRI), said that while the last-minute ratifications from China, Japan and Brazil were not required for the treaty’s entry into force, they were about high-seas players ensuring they have a “seat at the table”.

    “As major fishing nations and geopolitical powers, these countries recognise that upcoming BBNJ COP negotiations will shape rules affecting critical commercial sectors – from shipping and fisheries to biotechnology – and influence how governments engage with the treaty going forward,” Pickerell told Climate Home News.

    Some major Western countries – including the US, Canada, Germany and the UK – have yet to ratify the treaty and unless they do, they will be left out of drafting its procedural rules. A group of 18 environmental groups urged the UK government to ratify it quickly, saying it would be a “failure of leadership” to miss the BBNJ’s first COP.

    Finalising the rules

    Countries will meet from March 23 to April 2 for the treaty’s last “preparatory commission” (PrepCom) session in New York, which is set to draft a proposal for the treaty’s procedural rules, among them on funding processes and where the secretariat will be hosted – with current offers coming from China in the city of Xiamen, Chile’s Valparaiso and Brussels in Belgium.

    Janine Felson, a diplomat from Belize and co-chair of the “PrepCom”, told journalists in an online briefing “we’re now at a critical stage” because, with the treaty having entered into force, the preparatory commission is “pretty much a definitive moment for the agreement”.

    Felson said countries will meet to “tidy up those rules that are necessary for the conference of the parties to convene” and for states to begin implementation. The first COP will adopt the rules of engagement.

    She noted there are “some contentious issues” on whether the BBNJ should follow the structure of other international treaties such as the Convention on Biological Diversity (CBD), as well as differing opinions on how prescriptive its procedures should be.

    “While there is this tension on how far can we be held to precedent, there is also recognition that this BBNJ agreement has quite a bit to contribute in enhancing global ocean governance,” she added.

    The post Big fishing nations secure last-minute seat to write rules on deep sea conservation appeared first on Climate Home News.

    Big fishing nations secure last-minute seat to write rules on deep sea conservation

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    Climate Change

    Climate at Davos: Energy security in the geopolitical driving seat 

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    The annual World Economic Forum got underway on Tuesday in the Swiss ski resort of Davos, providing a snowy stage for government and business leaders to opine on international affairs. With attention focused on the latest crisis – a potential US-European trade war over Greenland – climate change has slid down the agenda.

    Despite this, a number of panels are addressing issues like electric vehicles, energy security and climate science. Keep up with top takeaways from those discussions and other climate news from Davos in our bulletin, which we’ll update throughout the day.

    From oil to electrons – energy security enters a new era

    Energy crises spurred by geopolitical tensions are nothing new – remember the 1970s oil shock spurred by the embargo Arab producers slapped on countries that had supported Israel during the Yom Kippur War, leading to rocketing inflation and huge economic pain.

    But, a Davos panel on energy security heard, the situation has since changed. Oil now accounts for less than 30% of the world’s energy supply, down from more than 50% in 1973. This shift, combined with a supply glut, means oil is taking more of a back seat, according to International Energy Agency boss Fatih Birol.

    Instead, in an “age of electricity” driven by transport and technology, energy diplomacy is more focused on key elements of that supply chain, in the form of critical minerals, natural gas and the security buffer renewables can provide. That requires new thinking, Birol added.

    “Energy and geopolitics were always interwoven but I have never ever seen that the energy security risks are so multiplied,” he said. “Energy security, in my view, should be elevated to the level of national security today.”

    In this context, he noted how many countries are now seeking to generate their own energy as far as possible, including from nuclear and renewables, and when doing energy deals, they are considering not only costs but also whether they can rely on partners in the long-term.

      In the case of Europe – which saw energy prices jump after sanctions on Russian gas imports in the wake of Moscow’s invasion of Ukraine – energy security rooted in homegrown supply is a top priority, European Commission President Ursula von der Leyen said in Davos on Tuesday.

      Outlining the bloc’s “affordable energy action plan” in a keynote speech at the World Economic Forum, she emphasised that Europe is “massively investing in our energy security and independence” with interconnectors and grids based on domestically produced sources of power.

      The EU, she said, is trying to promote nuclear and renewables as much as possible “to bring down prices and cut dependencies; to put an end to price volatility, manipulation and supply shocks,” calling for a faster transition to clean energy.

      “Because homegrown, reliable, resilient and cheaper energy will drive our economic growth and deliver for Europeans and secure our independence,” she added.

      Comment – Power play: Can a defensive Europe stick with decarbonisation in Davos?

      AES boss calls for “more technical talk” on supply chains

      Earlier, the energy security panel tackled the risks related to supply chains for clean energy and electrification, which are being partly fuelled by rising demand from data centres and electric vehicles.

      The minerals and metals that are required for batteries, cables and other components are largely under the control of China, which has invested massively in extracting and processing those materials both at home and overseas. Efforts to boost energy security by breaking dependence on China will continue shaping diplomacy now and in the future, the experts noted.

      Copper – a key raw material for the energy transition – is set for a 70% increase in demand over the next 25 years, said Mike Henry, CEO of mining giant BHP, with remaining deposits now harder to exploit. Prices are on an upward trend, and this offers opportunities for Latin America, a region rich in the metal, he added.

      At ‘Davos of mining’, Saudi Arabia shapes new narrative on minerals

      Andrés Gluski, CEO of AES – which describes itself as “the largest US-based global power company”, generating and selling all kinds of energy to companies – said there is a lack of discussion about supply chains compared with ideological positioning on energy sources.

      Instead he called for “more technical talk” about boosting battery storage to smooth out electricity supply and using existing infrastructure “smarter”. While new nuclear technologies such as small modular reactors are promising, it will be at least a decade before they can be deployed effectively, he noted.

      In the meantime, with electricity demand rising rapidly, the politicisation of the debate around renewables as an energy source “makes no sense whatsoever”, he added.

      The post Climate at Davos: Energy security in the geopolitical driving seat  appeared first on Climate Home News.

      Climate at Davos: Energy security in the geopolitical driving seat 

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      Climate Change

      A Record Wildfire Season Inspires Wyoming to Prepare for an Increasingly Fiery Future

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      As the Cowboy State faces larger and costlier blazes, scientists warn that the flames could make many of its iconic landscapes unrecognizable within decades.

      In six generations, Jake Christian’s family had never seen a fire like the one that blazed toward his ranch near Buffalo, Wyoming, late in the summer of 2024. Its flames towered a dozen feet in the air, consuming grassland at a terrifying speed and jumping a four-lane highway on its race northward.

      A Record Wildfire Season Inspires Wyoming to Prepare for an Increasingly Fiery Future

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