Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity

Australia can leverage its vast iron ore reserves and renewable energy potential to become a global leader in green iron, potentially doubling its iron ore export revenues to over AU$250 billion per year. The report emphasizes the urgency of securing financial close for 'Lighthouse' projects by 2027 to compete with rivals like the US and Middle East. Key barriers include the high cost of green hydrogen and electricity, bureaucratic permitting delays, and a lack of strong commercial demand signals. Proposed solutions include a green iron production tax credit, the establishment of green shipping corridors to East Asia, and the use of demand-aggregation platforms like the First Movers Coalition.

• Transitioning from raw iron ore to green iron could significantly increase Australia's economic returns, potentially doubling current iron ore export revenues to more than AU$250 billion per year.
• Australia's green iron exports have the potential to reduce global emissions by up to 4% by mid-century, which is four times the country's own current emissions.
• Industry stakeholders identify a critical goal to reach financial close on one or two commercial-scale "Lighthouse" green iron projects by the end of 2027 to ensure commercial operations begin before 2030.
• There is a strong preference among stakeholders for green hydrogen-based direct reduced iron (DRI) over gas-based pathways, with 59% of surveyed participants prioritizing hydrogen-based DRI.
• The primary barriers to scaling the industry are the delivery of affordable green electricity (35%) and the absence of strong commercial signals such as carbon pricing or green premiums (34%).
• To bridge the cost gap between green and carbon-intensive iron, a production tax credit of AU$170 per tonne is proposed to simulate the effect of a carbon price.
• Decarbonizing the 6,500 km shipping route from Pilbara to East Asia is essential for the credibility of green iron, with ammonia-fuelled bulk carriers offering potential emission reductions of 50-95% per voyage.
• The Australian Government has implemented several financial supports, including the AU$1 billion Green Iron Investment Fund and the AU$2.7 billion Hydrogen HeadStart programme.
• Bureaucratic delays in permitting renewable energy and transmission infrastructure, particularly in the Pilbara region, are significantly hindering the industry's progress.
• Regional cooperation and the alignment of carbon pricing mechanisms, such as a potential Asian Carbon Border Adjustment Mechanism (CBAM), are necessary to drive demand from major importers like China, Japan, and South Korea.

APA

World Economic Forum (2025). Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity. https://reports.weforum.org/docs/WEF_Unlocking_Asia-Pacific_as_a_First_Mover_2025.pdf

Chicago

World Economic Forum. Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity. 2025. https://reports.weforum.org/docs/WEF_Unlocking_Asia-Pacific_as_a_First_Mover_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity |date=November 2025 |url=https://reports.weforum.org/docs/WEF_Unlocking_Asia-Pacific_as_a_First_Mover_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025unlocking, author = {{World Economic Forum}}, title = {{Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity}}, institution = {World Economic Forum}, year = {2025}, month = nov, url = {https://reports.weforum.org/docs/WEF_Unlocking_Asia-Pacific_as_a_First_Mover_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }