An initiative to transition ‘hard-to-abate’ sectors to net-zero emissions by 2050 has been boosted by both a $2 million grant from the Australian Renewable Energy Agency (ARENA) and major players Rio Tinto and HSBC joining the initiative, along with research provider BloombergNEF.
The Australian Industry Energy Transitions Initiative (Australian Industry ETI) brings together key industry and finance companies to accelerate action towards achieving net-zero emissions in supply chains by 2050 across critical sectors known as ‘hard-to-abate’ given their high emissions and relatively higher abatement costs.
With Rio Tinto and HSBC joining 14 other major companies already part of the Australian Industry ETI, initiative partners now represent approximately 24 per cent of the ASX100 market value.
Other partners include BHP, Woodside, BlueScope Steel, BP Australia, Fortescue Metals Group, Orica, APA Group, Australian Gas Infrastructure Group, Wesfarmers Chemicals, Energy and Fertilisers, Aurecon, AustralianSuper, Cbus, National Australia Bank and Schneider Electric.
The Australian Industry ETI focuses on reducing supply chain emissions across five sectors: iron and steel; aluminium; liquified natural gas; selected metals (such as copper, nickel and lithium); and chemicals (particularly fertilisers and explosives).
It aims to support Australian industry to realise the opportunities of a decarbonised global economy, through identifying the timing, scale and sequencing of actions required across manufacturers and energy generators to begin transitioning to net-zero emissions supply chains.
Independent, not-for-profit bodies ClimateWorks and Climate-KIC are conveners of the Australian Industry ETI, working in collaboration with the global Energy Transitions Commission.
CEO of Climate-KIC Australia, Chris Lee, said initiatives like the Australian Industry ETI show the value in forming collaborative, cross-sectoral partnerships to set into motion transformational climate action.
“The Australian ETI partners recognise the opportunities, both economic and in terms of reducing emissions, that emerge when coordinated, systemic action is taken rather than ad-hoc single-point interventions,” Lee commented.
BloombergNEF has joined as a knowledge partner, alongside CSIRO and Rocky Mountain Institute. It is funded by philanthropy, company contributions and the Australian Government through ARENA’s Advancing Renewables Program.
Global Head of Industrial Decarbonisation at BloombergNEF, Kobad Bhavnagri, said decarbonising heavy industry is one of the great challenges of the energy transition.
“Australian industry can prosper in a net-zero world, and it is our mission to support companies and governments navigate change and generate opportunities. So we are thrilled to join the Australian Industry ETI as a research partner and contribute our global expertise to this important initiative,” Bhavnagri said.
The $2 million funding boost from ARENA will enable the initiative to develop credible pathways for the sectors to transition to net-zero emissions and pilot emissions reductions projects across different supply chains.
ARENA CEO, Darren Miller, said the Australian Industry ETI highlights the commitment of some of the nation’s biggest companies to be a part of the solution to reduce emissions.
“ARENA is proud to be supporting this initiative which will build momentum, and give industry confidence they will benefit from a low carbon Australian economy. It is exciting to see more industry partners signing on to the initiative so we can all collaborate, harness industry knowledge and identify pathways to net-zero,” Mr Miller said.
For more information on the Australian Industry ETI, visit energytransitionsinitiative.org