First-loss capital Philanthropic capital can take risks that others are unable to, by testing innovative, early-stage ideas that are too uncertain for public funding or commercial investment. When philanthropies provide first-loss capital to absorb the initial downside risk, it gives confidence to other investors to come in at scale. First-loss capital not only absorbs risk, it also changes the risk/return equation for everyone else. By taking the riskiest tranche, philanthropic dollars can lower the cost of capital for commercial investors, unlocking multiples of additional financing. When philanthropy backs a first-of-a-kind project, this also has a signalling effect in the market, conveying confidence in the concept, giving projects legitimacy and helping attract later-stage capital.Another advantage of philanthropic capital is its agility and flexibility, since it is not bound by market returns or lengthy budgeting processes – in turn allowing project proponents to work with speed and flexibility. Convening and agenda setting Philanthropy can play a key role in convening unlikely allies, leveraging its neutral platform to bring together stakeholders across sectors and industries. In Australia, philanthropy is helping shape the agenda around the green industrial transition, while building momentum and wider political and market support. This role can extend to supporting policy design and market-building efforts essential to scaling-up emerging green industries.Philanthropy’s roles Investors in transition technologies want credible pathways to net zero and visibility on how projects can progress on time and budget. Workshop participants spoke of the need for consistent, long- term policy commitment, beyond electoral cycles, to enable investment to flow into the sector. This section summarizes policy enablers critical to making Australia’s future green industries more investable, including: –Improving access to affordable renewable power and hydrogen –Expedited permissions and infrastructure approvals –Clarity on green standards, certification and “book-and-claim” –Engaging with local communities and boosting skills development4.3 Policy enablers The role of government is to coordinate, accelerate and de-risk, not just at the federal level, but also local and international. We need joined-up action to make clean industry a reality. Sam Crafter, State Lead, Whyalla Steelworks Industrial Transformation, Government of South Australia The availability of abundant, low-cost renewable electricity and green hydrogen were identified by participants as one of the top challenges to developing Australia’s green iron sector (see Figure 4). South Australia leads the way in renewables. Its grid already runs on 70-75% wind and solar power and the state is on track to hit 100% renewable electricity by 2027. SA is also well advanced on hydrogen, having invested heavily in a AU$600 million hydrogen project to support steelworks and power generation. In Western Australia, decarbonizing Pilbara’s mining operations, which account for ~80% of Australia’s iron ore exports, would require 5-7 GW of firmed renewable capacity.102 Yet the proportion of renewables in WA’s energy mix is nearer 2% and total installed capacity for mining operations is just 0.2 GW. Mining companies are planning to add 3-4 GW of renewable capacity by 2030. In June 2025, for example, Fortescue applied for permission to build a 2.1 GW wind farm and a 220 kV transmission line to support decarbonization work at its Iron Bridge magnetite mine in Pilbara, WA. It plans to more than double its investment within the next 12 months.103Improving access to affordable renewables and hydrogen Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 35

Unlocking Asia-Pacific as a First Mover 2025