Australia could unlock a near $300 billion clean industrial opportunity with targeted policy support, according to a new briefing from Mission Possible Partnership and the Industrial Transition Accelerator.
Released at Climate Action Week Sydney, Clean industry spotlight: Turning Australia’s natural advantage into industrial leadership outlines how demand-side measures and investment certainty could accelerate the country’s clean industry pipeline and position it as a global exporter of low-emissions commodities.
The report identifies around 70 clean industrial projects currently in development across Australia, including 15-20 at advanced stages. If supported by clear policy signals, these projects could collectively attract more than $290 billion in investment.
Australia’s existing export base, which is dominated by iron ore, coal and gas, is expected to evolve alongside emerging sectors such as clean iron, green ammonia and sustainable fuels. The shift is also expected to drive job creation in established industrial regions, including Gladstone in Queensland.
Michael Bartlett, Acting Branch Head at the Department of Climate Change, Energy, the Environment and Water, explained that early action would be critical to capturing the opportunity.
“If we act now to kick-start the clean industrial revolution in Australia, we can realise an immense economic opportunity valued at more than a quarter of a trillion dollars,” Bartlett said.
Australia’s competitive advantages include abundant renewable energy resources, significant mineral reserves and a strong reputation as a reliable trading partner. These factors are already attracting international interest in decarbonised steel, fuels and heavy industry supply chains.
Globally, Australia ranks behind only China and the United States in terms of its clean industrial project pipeline. However, progress remains constrained. Of the 70 projects identified, only one has reached final investment decision, highlighting the gap between development and delivery.
The report points to several key barriers, including limited demand for low-emissions products, policy uncertainty, high upfront capital costs and fragmented market signals.
To address these challenges, it recommends a suite of policy measures focused on de-risking investment and stimulating demand. These include public procurement mandates, carbon contracts and price guarantees to support early markets, alongside loan guarantees, export finance and tax incentives to crowd in private capital.
Investment in shared infrastructure and contingency facilities is also identified as critical to reducing project delivery risk.
Momentum is already building. The Federal Government’s Future Made in Australia agenda commits $22.7 billion over the next decade to strengthen clean industry competitiveness, while private sector investment is accelerating across sectors including sustainable aviation fuel and green iron.
The report concludes that coordinated action between government, industry and finance will be essential to convert Australia’s project pipeline into operational assets and establish new export-oriented clean industrial supply chains.
