Prime Minister China trip: Anthony Albanese calls for China partnership on green steel and emissions cuts

Prime Minister Anthony Albanese has kicked off a business-focused day in Shanghai with an appeal for greater co-operation between Australia and China to produce green energy and cut emissions from iron ore mining and steel production.

“It is in both countries’ interests to ensure a sustainable and market-driven global steel sector,” he told a decarbonisation roundtable of Australian and Chinese industry chiefs, including BHP’s Geraldine Slattery, Fortescue’s Andrew Forrest and Rio Tinto’s Kellie Parker.

Steel decarbonisation involves reducing carbon dioxide emissions in steel production which significantly add to global emissions.

While China remains the world’s largest emitter, it is also viewed as a clean tech powerhouse, funnelling huge resources into renewable energy sources and decarbonising its industrial production.

The Government and industry view greater collaboration with China as vital to meeting Australia’s own green energy goals.

“Australian miners are reliable and stable (suppliers) of iron ore, responsible for almost 60 per cent of China’s iron ore imports. That iron ore goes into Chinese steel production, which accounts for over 50 per cent of global supply.

“Trade remains a central pillar of our bilateral trading relationship, supporting jobs, investment, and prosperity in both of our countries.

“Steelmaking value chains are also responsible for 7 to 9 per cent of global emissions, and achieving the goal of the Paris Agreement will require the decarbonisation of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests.

“Steel decarbonisation presents a range of challenges. What we need are enabling policy environments, extensive investments in research to develop new technologies and collaboration across academia, industry and Government,” Mr Albanese added.