Rio Tinto today signed an MOU with its customer China Baowu Steel Group, as well as Tsinghua University, to identify methods for the reduction of carbon emissions.
For Rio Tinto, emissions at China Baowu, a user of its iron ore, constitute “Scope 3” emissions. Those relating to its energy consumption and its manufacturing operations are known as Scope 1 and 2, respectively. Scope 3 emissions for Rio Tinto are Scope 2 for China Baowu.
Rio Tinto is one of the largest global producers of iron ore, while China Baowu is the largest steel producer in China. Carbon emissions arising from the steel value chain comprise seven and nine percent of global carbon emissions and are therefore of special environmental significance.
BHP, a major rival to Rio Tinto, pledged in July to spend $400 million on a Climate Investment Program to reduce its emissions, including Scope 3.
Rio Tinto’s climate initiative for Scope 3 received a fillip when the China Iron and Steel Association (CISA) invited the parties to sign the MOU at its China International Steel and Raw Materials Conference held in Qingdao.
Under the MOU, a joint working group will be given the responsibility to develop a joint action plan to address climate change and improve environmental performance.
“The materials we produce have an important role to play in the transition to a low carbon future, and we are committed to partnering with our customers and others to find the most sustainable ways to produce, process and market them,” said Rio Tinto chief executive, J-S Jacques. “We are already doing this in aluminum and now, through this partnership, we will be doing it in the steel industry.”
Scope 3 emissions in mining will be a key session at the Energy and Mines Australia Summit 2020 – to get involved contacts adrienne.baker@energyandmines.com
Read Rio Tinto’s media release HERE.
Feature image source: Pixabay