Mining companies are not doing enough to meet Paris climate agreement targets, observes a report by McKinsey.
About 4-7% of global greenhouse gas emissions emanate from the mining industry. Of this, Scope 1 emissions (from mining operations) and Scope 2 (power consumption by mines) account for 1%. A significant 3-6% is fugitive-methane emission from coal mining.
Scope 3 (indirect) emissions, including combustion of coal, aggregate 28%.
To limit global warming to 1.5°C, CO2 emissions across the entire global value chain must reduce by at least 85%.
However, “mining companies’ published emission targets tend to be more modest than that, setting low targets, not setting targets beyond the early 2020s, or focusing on emission intensity rather than absolute numbers,” says the McKinsey report.
The report is clear that the major effort for decarbonization of the mining industry rests at the door of the coal industry. However, there are other “decarbonization levers” that the industry can use to reduce on-site emissions from mines.
These include changing processes to improve energy efficiency, a switch to renewables, electrifying haulage, and switching from diesel fuel to hydrogen.
“To date, mining companies have viewed sustainability mostly through a local lens, but achieving a 1.5°C to 2.0°C pathway will require significant global action,” says the report.
Unfortunately, mines’ carbon footprint is not their only concern. The report also warns of the effect of extreme weather on mining assets, and the impact on mines’ revenues and profits from decarbonization in other industries.
Read the McKinsey report HERE.
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