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.
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.
5. Reports and releases
Pathways to industrial decarbonisation: Positioning Australian industry to prosper in a net zero global economy
In 2023, there is international accord that urgent action is required to reduce emissions in line with Paris Agreement goals and limit warming to below 2°C, and preferably to 1.5°C.
Setting up industrial regions for net zero – Australian Industry Energy Transitions Initiative Phase 2 report
Australia’s industrial regions are significant in terms of their emissions, energy use and contribution to the economy.
Setting up industry for net zero – Australian Industry Energy Transitions Initiative Phase 1 report
Emissions from Australia’s industrial supply chains are considered ‘hard-to-abate’ because addressing them poses more technological and commercial challenges than encountered in other sectors of the economy.
6. Related news and resources
Australia’s green hydrogen hour has arrived
Green hydrogen could be a fossil fuels replacement in some sectors if Australia takes the immediate steps to embrace it.
Australia’s main iron ore exports may not work with green steelmaking. Here’s what we must do to prepare
Making steel was responsible for about 7 per cent of global greenhouse gas emissions in 2020.
How Australia can reduce greenhouse gas emissions in ‘hard to abate’ sectors
Australia has the tools and technologies at its disposal to decarbonise most sectors of its economy.
Heavy industry in Australia could decarbonise, help limit warming to 1.5 degrees and create up to 1.35 million jobs: new report outlines pathways
A new report has, for the first time in Australia, outlined decarbonisation pathways that show it is possible for five of Australia’s most significant heavy industry supply chains to transition to net zero, consistent with global efforts to limit warming to 1.5ºC.
‘We can do it’: Climate and Energy Minister Chris Bowen launches report outlining pathways to decarbonise Australian industry
Minister for Climate Change and Energy, the Hon. Chris Bowen MP, says he believes Australia can, with an ‘all-in effort’, decarbonise heavy industry and create jobs across the nation in the process.
Climateworks takes Australian industrial decarbonisation message to Global Clean Energy Action Forum
The message from last month’s inaugural Global Clean Energy Action Forum (GCEAF) is that it’s time for action, Climateworks Industry Lead Rob Kelly says.
The Briefing Room: How to decarbonise industry in Australia – Part 1
Join us for part one of a two-part deep dive into strategies to decarbonise Australian industry.
How to decarbonise Australia: Industry, energy and technology
Join us for our second deep dive into decarbonising the nation, as we explore the role of pathways in guiding the transition to net zero emissions.
‘Setting up industrial regions for net zero’ report finds huge potential for decarbonisation
Major industrial regions – including the Pilbara, Kwinana, Hunter, Illawarra and Gladstone – have the natural resources, workforce and baseline infrastructure that can be expanded to support Australia’s net zero transition, according to a new report.
The briefing room: Decarbonising regional Australia
Australia’s regions face growing uncertainty as shifts to decarbonise global supply chains risk leaving industrial regions behind.
Australian Industry Energy Transitions initiative wraps up first phase, releasing early findings into emissions reduction opportunities across supply chains
A year on from the initiative’s launch, the first phase of the Australian Industry Energy Transitions initiative has wrapped up, bringing together industry and business leaders to work collectively towards net zero emissions by 2050.
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.
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.