Measures towards resilient supply chains

Current status of implementation and existing gaps

Supply chain resilience for shipping can be looked at from many different aspects. Challenges to fuel supply chains can relate to feedstock scarcity and transparency on the sustainability of biomass. Another challenge is the high concentration of maritime trade on a few routes. Any disruption on these routes can affect global trade and the energy transition as the shipping sector is likely to play a key role in the trade of clean energy technology and the scale up of clean fuels trade (IEA, 2024d).

Examples and initiatives

The International Energy Agency identified that reliance on a few maritime routes could disrupt global supply chains (IEA, 2024d).

Current status of implementation and existing gaps

Challenges to SAF supply chains mostly relate to feedstock scarcity and transparency in sustainability. IRENA’s study on SAF in south-east Asia, for example, advocates for a co-ordinated regional framework for SAF development (IRENA, 2024a, 2024e). Challenges to feedstock scarcity can be tackled by diversification of SAF production pathways, including building demonstration plans for different production pathways.

Examples and initiatives

Initiatives such as the Hong Kong Sustainable Aviation Fuel Coalition, work with different stakeholders in their regions to identify challenges and co-ordinate actions across the SAF value chain, from feedstocks to end use.

Current status of implementation and existing gaps

Future DRI production may take place in locations where low-cost hydrogen can be produced. Such locations coincide well with the locations of iron ore mining today, such as Australia, Brazil and parts of Africa. In fact, these countries are advancing on this approach and are seeking opportunities for global trade of DRI to demand-seeking regions. The trade of green iron from regions rich in renewable energy and iron ore can add economic value, leading to green industrialisation and job creation. Meanwhile, the traditional steel-producing countries can retain their industry and workforce, as about three-quarters of the sector’s direct jobs are downstream in steelmaking and end product manufacturing (Gielen and Rocha, 2025).

Examples and initiatives

The OECD Steel Committee is a platform for steel trade co-operation and has now expanded the scope of its discussions to include decarbonisation issues.

Current status of implementation and existing gaps

Supply chain challenges for low-carbon chemical production can relate to feedstock scarcity and transparency about the sustainability of biomass.

Examples and initiatives

Several chemical producers, such as BASF and Neste, have sustainable sourcing platforms that engage with farmers either directly or via co-operatives to ensure the traceability of biomass feedstocks along the production supply chain.

Current status of implementation and existing gaps

Cement producers are increasing the use of alternative raw materials, such as fly ash, steel slag and calcined clay, to reduce dependency on virgin limestone and enhance supply chain resilience. To mitigate supply disruptions from geopolitical risks and material shortages, cement producers are investing in regional supply hubs. Countries are increasing localised production, but logistics bottlenecks remain a challenge. The decarbonisation of the steel and coal industries is reducing the availability of blast furnace slag and fly ash, impacting SCM supplies. Research is under way into new SCMs, such as calcined clay, but global scale-up is slow (Cembureau, 2024; McKinsey & Company, 2020).

Examples and initiatives

Dalmia Cement in India has adopted a circular economy approach, sourcing 41% of its raw materials from waste streams, reducing supply chain dependency.

At Poland’s Rudniki plant, decarbonised waste raw materials now account for over 13% of clinker material input, reducing reliance on primary materials (GCCA, 2024).