International platforms to aggregate private sector demand Without clear demand signals from the market – in the form of secure long-term offtake agreements – a $6-10 billion green iron plant will struggle to achieve bankability or reach final investment decision (FID). Demand signals from individual market players for deeply decarbonized industrial products need to be aggregated to start moving the markets. Several global platforms have successfully demonstrated this is possible. The World Economic Forum’s First Movers Coalition (FMC) is the world’s largest private demand signal for near-zero emissions steel (see Box 8).Boosting demand through market-based offtake and procurement Offtake agreements are the cornerstone of investor confidence. Workshop lead convenor First Movers Coalition – the world’s largest private demand signal for low-carbon steel BOX 8 FMC’s steel commitment: “At least 10% (by volume) of all our steel purchased per year will be near-zero emissions (as per FMC definition) by 2030.” FMC criteria: Near-zero emissions steel production should emit less than 0.4 tonnes of CO2-equivalent per tonne of crude steel produced.79FMC’s global Near-Zero Steel 2030 Challenge: this resulted in boosting initial near-zero steel demand by 3 million tonnes from 2023-24, based on early voluntary market signals.80 The initiative also challenged iron and steel makers and technology innovators to share details of their near-zero projects to boost visibility of partnering opportunities and provide impetus for further demand aggregation. In September 2024, RMI’s Sustainable Steel Buyers Platform (SSBP) – comprising buyers from the manufacturing, construction and technology sectors – launched an RFP process in North America to aggregate demand for at least 1 million tonnes of near-zero emissions steel per year by 2028. SSBP aims to make clean steel projects more investable by connecting producers directly to end-use buyers.81 RMI, in collaboration with Mission Possible Partnership (MPP), is planning to launch a similar SSBP in Asia-Pacific. Value chain initiatives to absorb green premium Absorbing the higher cost of green products within the downstream value chain is a key requirement for producers and upstream offtakers. Using green steel in a dishwasher, for example, would increase the price of the appliance by just $3 – “nothing in the bigger picture of the cost of a dishwasher”, said one participant. Customer-facing retailers may therefore be able to absorb some of the green premium within their pricing strategies. Automotive and construction sectors have indicated they are willing to absorb a premium for low-emission materials, especially in high-profile infrastructure projects. A study by BCG into the willingness to pay among automotive and white goods sectors found that the premiums low-carbon goods can command are unevenly distributed, with downstream players benefitting while upstream players bear most of the decarbonization costs. The study concluded: “An ecosystem approach is needed to interconnect value chain players so that green premiums, often collected by OEMs, can flow upstream to suppliers and producers.”82 Other actors also have a key role to play: –Governments: specifying green procurement targets to underwrite green iron projects, promoting clean commodity credits and incentives (see below). –Mining companies: committing to new technologies (e.g. battery-electric and H2-ICE trucks, ammonia dual-fuel bulk carriers). –Port authorities: investing in new bunkering facilities and safety measures needed for low- carbon shipping fuels. –Export markets: demonstrating commitment to green iron, green transport corridors and the infrastructure and common standards required to make these a reality. Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 30

Unlocking Asia-Pacific as a First Mover 2025