One of the keynote speakers said the government should provide first movers with grants covering 30% of their capital to reflect the value of the “positive externalities” of their pioneering innovations. While early-stage funding from government provides a solid basis, some participants pointed to gaps in later-stage equity for project construction. They highlighted how the US Inflation Reduction Act (IRA) illustrates that rapid deployment of concessional capital can catalyse market development. Swift state support is a priority. Green iron industry representatives at the workshop called for government funds to be deployed within the next two years, with clear priorities on transparency, emissions thresholds and risk mitigation through milestone-based payments. The following sections summarize the relevant government agencies and funds that help de-risk the production of green iron, renewables and green hydrogen, much of it falling under the Future Made in Australia agenda introduced in Chapter 2.2. Government agencies and funds supporting green iron Australian Renewable Energy Agency (ARENA) – AU$3.2 billion available to support the commercialization of net-zero technologies, including the AU$1.7 billion Future Made in Australia Innovation Fund, which is directing resources towards green metal projects (AU$750 million), clean energy technology manufacturing (AU$500 million) and low-carbon liquid fuels (AU$250 million).88 Clean Energy Finance Corporation (CEFC) – AU$32.5 billion available as concessional debt or equity to de-risk projects decarbonizing energy generation and heavy industry, including green steel and hydrogen (see Box 10). Green Iron Investment Fund (GIIF) – AU$1 billion of grant funds. This aims “to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale,” said Prime Minister Albanese, when launching the fund in February 2025.89 Up to AU$500 million has been earmarked for the transformation of Whyalla Steelworks in South Australia, shoring up local jobs and helping with the energy transition. The remainder is available as grants to both existing facilities and greenfield projects that can demonstrate a pathway to commercial-scale green iron production by March 2031.90 Net Zero Fund – AU$5 billion: a new fund, formed in September 2025, to refocus concessional finance from the National Reconstruction Fund “to support major investments by large industrial facilities in decarbonisation and energy efficiency, and scale up manufacturing low emissions technologies”, including green metals, batteries and hydrogen value chains.91,92 These government agencies work in concert with each other. For example, ARENA supports early- stage R&D and pilot projects to prove technological feasibility, CEFC provides finance to scale-up feasible projects to commercial bankability, while GIIF can help cover capital costs to establish commercial-scale manufacturing facilities. The new Net Zero Fund also aims to dovetail its financing initiatives with those of CEFC. Nevertheless, given the huge cost of new green iron production plants, participants said additional grant funding would be needed from government to lower capital costs – as part of, or preferably on top of, the existing Green Iron Investment Fund, which they said is unlikely to be sufficient. Clean energy finance corporation (CEFC) BOX 10 The clean energy finance corporation (CEFC) is Australia’s government-owned green investment bank, with a mission to invest in clean energy generation, low-carbon fuels including green hydrogen and the decarbonization of hard-to- abate industries, such as the iron and steel sector. It has a reported investment capacity of AU$32.5 billion, which it disburses as both concessional debt (e.g. lower interest rates, longer tenor, flexible repayment terms) and as concessional equity (e.g. lower preferred returns, subordinated equity). This enables CEFC to de-risk early-stage projects and crowd-in private sector finance for first-of-a-kind and higher risk projects. In the six months to December 2024, CEFC made investment commitments of AU$1.1 billion, which leveraged a total transaction value of AU$6.3 billion. “This is a strong indication of the level of market interest in a diverse range of clean energy investment opportunities,” said the corporation’s CEO. Source: see endnote.93 Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 33

Unlocking Asia-Pacific as a First Mover 2025