Large production tax credits, grants for capital works and public investment in shared infrastructure would kickstart a $400 billion green iron export industry in Australia, according to new research released Monday by The Superpower Institute (TSI).
The policy specialist’s modelling demonstrates the measure could get green iron exports to a scale that would exceed the current value of iron ore exports by a factor of four, delivering long-term economic prosperity.
But without the policy intervention, market failures like the lack of an international price on carbon emissions, inadequate incentives for innovation and early investment, and underinvestment in critical infrastructure will continue to hold back investment in Australia’s green iron production.
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