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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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Countries urged to ramp up “insufficient” nature policies at COP17

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A first set of biodiversity plans filed by countries to reverse nature loss are “insufficient” to meet this decade’s global targets, including a landmark goal to protect at least 30% of the world’s land and marine ecosystems by 2030, a landmark UN report warned on Thursday.

The State of Biodiversity Action, put together by a panel of technical experts for the UN Convention on Biological Diversity (CBD), was released in Yerevan, ahead of the COP17 nature talks starting on Monday in the Armenian capital.

Over the next two weeks, governments will for the first time take stock of progress towards the Global Biodiversity Framework (GBF) agreed in 2022 – a set of 23 targets also known as the “Paris Agreement for nature” – and will decide on policy guidelines for ramping up ambition before the 2030 deadline. The UN report will be the main basis for these negotiations.

At a press conference in Armenia, UN Secretary-General António Guterres highlighted that, while there has been some progress on the GBF, the “bad news” is that less than half of country plans are on track to meet its targets.

If current commitments are met by the end of the decade, only 26% of land ecosystems and 12% of marine ecosystems will be protected – falling “real short” of the 30% target agreed in Montreal in 2022, Guterres said. “The war on nature has not yet ended,” he added.

UN Environment chief Inger Andersen said the report “sets the tone for the focus, ambition and urgent action we need to deliver” in Armenia, including by reducing subsidies that harm nature and mobilising new finance for biodiversity. “All leaders and all negotiators must respond to these findings,” she emphasised.

Andersen added that climate change amplifies threats to biodiversity, which makes protection all the more important as global warming is now almost certain to rise above a key threshold. “Exceedence of 1.5C increases the likelihood of forest diebacks, phenological shifts, warming oceans that become more inhospitable to species, irreversible tipping points and so much more,” she said.

    Progress on land but ocean lags behind

    The report shows that if countries meet all the biodiversity targets in their plans, this would protect about 27% of the world’s land and sea by 2030, a fivefold increase in the span of ten years.

    Progress has been uneven, with most conservation efforts focused on terrestrial ecosystems. The report suggests that currently about 19% of land ecosystems are protected, up two percentage points from 2020, which UN authorities welcomed but said is not a fast enough pace.

    However, the real gap is at sea, where only about 10% of the global ocean has some sort of protection. Coastal areas under national jurisdiction have done better, as currently 23% of this marine territory is protected, but the report shows most of the deep ocean is not.

    Brian O’Donnell, director of Campaign for Nature, an advocacy group, said the new High Seas Treaty – which entered into force this year and will allow for the creation of Marine Protected Areas in the deep ocean – represents an opportunity, as only about 1.5% is under protection so far.

    A group of environmental NGOs including WWF and Bloomberg Philanthropies has issued a call for governments to scale up ocean conservation and to designate $16 billion annually for marine protection measures, up from $1.8bn now.

    SE Asia speeds up plan for connected clean power grid after oil shock

    Some countries did not set a conservation target at all for both land and sea, the report says, blaming technical challenges like how to account for overlapping protected areas, difficulty recognising protections for private land and land-accounting methodologies changing over time.

    A separate report by Campaign for Nature suggests that the 30×30 goal could still be met with “increased ambition and commitment”, and says that around 50 countries have already protected about 30% of their land.

    A group of environmental NGOs has warned that, beyond the 30% headline figure, protected areas need to be “high integrity” and recognise the stewardship of local communities and Indigenous peoples.

    Largely pristine rainforest surrounds the Oiapoque River, which marks the border between Brazil and French Guiana
    Largely pristine rainforest surrounds the Oiapoque River, which marks the border between Brazil and French Guiana (Photo: Pedro Ladeira)

    Developing countries call for finance

    Rich countries will arrive at COP17 with shrinking aid budgets and geopolitical preoccupations – yet they will likely hear the same plea they’ve heard for the past few years: stepping up commitments will require finance.

    A submission by African countries in August said the “implementation gap” has at its core a shortfall in the provision of funds, and that bridging it will require predictable and accessible finance.

    Pacific island nations launched a similar call, arguing there is “a treaty obligation” that developing countries, including themselves, will effectively implement commitments depending on the finance and technology made available by developed nations.

    To close this gap, the EU made a proposal at preliminary talks in Nairobi in August to expand the base of donors so that richer developing countries could voluntarily assume donor responsibilities. Saudi Arabia and Qatar rejected the idea, while China said this should not weaken the responsibility of developed nations.

    Pre-COP draws attention to Pacific’s climate plight and 1.5C goal

    So far, wealthy governments have missed a target to provide $20bn per year in international public finance for nature protection by 2025, reaching only about $16bn per year from 2023 to 2025, according to an OECD report. By 2030, the GBF aims for developed countries to directly transfer $30bn per year, and mobilise $200bn from all sources.

    The UN report released on Thursday shows even slower progress in redirecting harmful subsidies such as those which encourage the overuse of fertilisers and the production and consumption of new fossil fuels, and below-market fees that encourage overfishing. UN Environment estimates that for every dollar spent protecting nature, $30 goes on destroying it.

    UN biodiversity chief Astrid Schomaker told journalists in Yerevan that “if you hear there is no finance, please do not believe it” because economies are continuing to grow. “It is being spent on activities that harm the economy rather than those that work with nature and sustain life on this planet,” she said.

    Guterres said developed countries tend to say they are grappling with budget constraints due to increased defence expenditure, which “in my view does not justify a reduction” in international aid. He added that existing resources can be multiplied if they are used to mobilise private capital.

    Campaigners, companies and the Armenian government want to shift the needle on this situation at COP17 by highlighting how positive subsidies help restore biodiversity. They will launch a flagship call to action that will be taken forward by countries and groups working to reform damaging incentives.

    Nature-based solutions may include restoring and conserving coral reefs and mangrove belts to enhance resilience to coastal flooding and sea level rise. (Photo: NPS Climate Change Response)

    Global review: the main act

    The Global Review of Collective Progress – a bit like the Global Stocktake for climate action – is set to be the most important outcome from COP17, and it will be the first time this process unfolds at the biodiversity talks. The actions decided in Yerevan will respond to the gaps outlined in the State of Biodiversity Action report and determine whether countries can turn the tide of biodiversity loss this decade.

    Overall, the report shows that while countries have taken action to address all 23 targets in the GBF, none “present a fully positive picture”. A target to strengthen the resilience of ecosystems to climate impacts is the only one with high relative progress, the report says, as government have already made effective interventions that show “a positive trend”.

    The report assessed each country’s national targets, which define their contribution to the global goals, as well as their separate National Biodiversity Strategy and Action Plans (NBSAPs) outlining how they will achieve the national targets.

    But it does not paint a complete picture, since at the cut-off date, only 89 NBSAPs and national targets from 162 countries had been submitted, leaving out a couple of dozen plans that arrived late. Pacific island nations said this might undercount commitments.

    Many of those lacking an NBSAP are biodiversity-rich developing countries, which say they need financial and technical support to fully develop these plans. Some large nations pending an NBSAP include South Africa, Bolivia and Russia.

    Since the GBF was agreed in 2022, governments have mostly focused on developing their biodiversity targets and plans, while the lion’s share of implementation is expected to happen towards the end of the decade, according to UN biodiversity chief Schomaker.

    But O’Donnell said “accelerated political ambition” is still needed to improve commitments and translate them into effective protection on the ground or at sea.

    The post Countries urged to ramp up “insufficient” nature policies at COP17 appeared first on Climate Home News.

    Countries urged to ramp up “insufficient” nature policies at COP17

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    Climate Change

    COP17: Tracking progress towards the UN’s 2030 nature targets

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    Countries will meet in Armenia this month to carry out the first global review of progress towards meeting key nature targets by 2030.

    These targets – and the wider ambition to halt and reverse biodiversity loss around the world – were agreed in the landmark Kunming-Montreal Global Biodiversity Framework in 2022.

    But the ambitions will not be achieved in time for the 2030 deadline unless action “accelerates rapidly”, a key UN report found.

    It noted that nations are falling short on 22 of 23 nature targets, which focus on restoring ecosystems, increasing nature finance and reducing harmful subsidies.

    This report and other findings will inform the global progress review taking place at the COP17 biodiversity summit in Armenia over 19-30 October.

    The sections below summarise the report’s findings on where progress has – and has not – been made on each of the 23 targets.

    They also rank the extent to which countries have addressed elements of each target on a national basis. Click on each target for more information. Key terms are defined throughout each section and in a glossary below.

    The post COP17: Tracking progress towards the UN’s 2030 nature targets appeared first on Carbon Brief.

    https://interactive.carbonbrief.org/nature-targets-2030-progress/

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    COP17: Developed countries ‘fall far short’ of UN targets for nature finance 

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    The amount of finance for nature delivered to date “falls far short” of what is needed to meet the UN’s global goals, according to a report released ahead of the COP17 biodiversity summit.

    The global stocktaking report, prepared by the UN Convention on Biological Diversity (UN CBD) ahead of this month’s summit in Armenia, finds that developed nations are failing to close the $200bn “biodiversity finance gap”.

    Initiatives designed to support this goal are also stumbling, with a special “framework” fund for biodiversity receiving less than $140m from developed countries in the past two years and the “landmark” Cali Fund receiving only $6,000 from private companies.

    The availability of finance – or lack thereof – is likely to be a key point of contention in negotiations at COP17 in Yerevan, Armenia, which begin on 19 October.

    Target for 2025 ‘not achieved’

    At COP15 in 2022, 196 countries agreed to an ambitious global deal to reverse biodiversity loss by 2030, dubbed the Kunming-Montreal Global Biodiversity Framework (GBF).

    Goal D of the agreement, shown below, states that countries must “close” a $700bn “biodiversity finance gap” by 2030.

    Goal D of the Kunming-Montreal Global Biodiversity Framework.

    This overall $700bn is made up of two parts: changes to nature-harming subsidies; and raising financial resources to support biodiversity.

    Target 18 within the text calls for countries to “identify by 2025, and eliminate, phase out or reform incentives, including subsidies, harmful for biodiversity…progressively reducing them by at least $500bn per year by 2030”.

    The remaining $200bn should be met by “mobilising” resources, according to target 19 of the GBF. It states that countries should “substantially and progressively increase the level of financial resources from all sources” to “at least” $200bn per year by 2030.

    The overarching $200bn can be from national budgets, multilateral development banks or money “mobilised” from the private sector.

    However, the target also specifically states that “at least $20bn per year by 2025 and…at least $30bn per year by 2030” should be public biodiversity funding provided to developing countries by developed countries – or others that “voluntarily assume” their obligations.

    According to the global stocktaking report prepared by the CBD, between 2020 and 2023, countries mobilised a cumulative total of just $186.4bn. This is equivalent to an average of less than $50bn per year.

    While the report – published on 10 September 2026 – cautions that it is “still too early to draw any conclusions”, it adds that this total “falls far short” of what is needed to close the $200bn-per-year biodiversity finance gap.

    It continues to specify that the milestone of raising “at least $20bn per year by 2025” in public finance was also “likely not achieved”.