1. Introduction

Introduction

We brought Australian industry together to accelerate action towards achieving net zero supply chains by mid century.

As our trading partners decarbonise and countries and companies set goals for net zero emissions by 2050, the ability of Australia’s industrial sectors to transition is significant for the Australian economy and the country’s ability to meet the goals of the Paris Agreement.

The Australian Industry Energy Transitions Initiative (Australian Industry ETI) brought together leaders from industry and business to coordinate learning and action on net zero emissions supply chains.

2. What we did

Climateworks Centre and Climate-KIC Australia co-convened the multi-year initiative with support from the Energy Transitions Commission. We brought together 18 industry participants, representing 32 per cent of the 2023 market cap of the ASX100. 

Combining independent analysis with industry knowledge and experience, we identified – for the first time in Australia – a potential pathway for heavy industry decarbonisation in line with limiting global warming to 1.5 degrees Celsius. 

Specifically, we focused on opportunities across five supply chains, where abatement has traditionally faced technological and commercial challenges. Collectively, these supply chains contribute approximately 25 per cent of Australia’s domestic greenhouse gas emissions and generate exports worth around $236 billion each year. These include iron and steel, aluminium, liquified natural gas, other metals (lithium, copper, nickel and zinc) and chemicals (ammonia, explosives and fertiliser).

Our findings have helped to inform Federal policy developments related to industrial decarbonisation. This includes the review of the National Hydrogen Strategy, Hydrogen Headstart Program and the Safeguard Mechanism.

3. Research partners

We partnered with leading research organisations to develop independent and evidence-based findings.

CSIRO, Energy Transitions Commission, Rocky Mountain Institute (RMI), Bloomberg NEF

4. Program participants

We convened leaders in industry and business to collectively learn, develop research and find actions that move broader industry sectors towards net zero emissions.

apa, aurecon, Australian Gas Infrastructure Group, Australian Super, BHP, Bluescope, BP, cbus, CEFC, Fortescue FMG, HSBC, NAB, Orica, Rio Tinto, Scheider Electric, Wesfarmers Chemicals Energy & Fertilisers, Westpac, Woodside Energy. Supported by AI Group, AIGN

6. Related news and resources

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Australian Industry Energy Transitions initiative wraps up first phase, releasing early findings into emissions reduction opportunities across supply chains

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Australia’s resources sector is preparing for the global net zero transition, but action to address the most significant source of emissions falls well short of the 2050 goal: report

Resource companies are moving their operations towards net zero by 2050, but more action is needed to address downstream scope 3 emissions, according to a new report about the climate commitments of Australia’s 22 largest resource companies.

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Heavy industry’s net-zero transition effort boosted by $2m ARENA grant and partnership with Rio, HSBC

An effort to transition ‘hard-to-abate’ sectors to net-zero emissions by 2050, including iron and steel, aluminium and chemical supply chains has been boosted by both a $2 million grant from the Australian Renewable Energy Agency (ARENA) and major players Rio Tinto and HSBC joining the initiative, along with research provider BloombergNEF.

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