Australia and China begin joint policy dialogue on steel decarbonization

Australia and China have signed a memorandum of understanding to establish a formal policy dialogue on steel decarbonization, marking a significant step in bilateral cooperation to reduce emissions from value chains in the steel industry. The agreement is in line with the commitments made during the visit of Australian Prime Minister Anthony Albanese to China in July 2025.

Emissions in value chains, low-emission markets and policy alignment

The political dialogue will focus on several priority areas.:

• decarbonization pathways for ferrous metallurgy production and distribution chains.
• decarbonized ferrous metallurgy markets and trade.
• relevant internal policy parameters and opportunities for cooperation.

With the steel industry accounting for up to nine percent of global greenhouse gas emissions, and demand for low-emission steel set to increase significantly in the coming decades, coordinated action is considered essential to accelerate global decarbonization.

Australia will hold the first meeting of the political dialogue in 2026.