The future of the global mining industry is changing before our eyes. A growing number of these companies are pursuing ambitious science-based targets to reach net-zero operational emissions by 2050. Other companies, from a variety of sectors, are leading the way by committing to net-zero Scope 3 emissions. These emissions are generated by upstream or downstream indirect activities in their value chains. This historic collaborative effort is a powerful signal that it’s still possible to combat climate change while driving through the eye of the storm that is macroeconomic headwinds.
In order to benchmark progress, mining companies are creating baseline levels for emissions that must be reduced. Surprisingly, a new common goal has formed. This includes a goal for 30% reduction in Scope 1 and 2 emissions by 2030. This benchmark is a starting point for most organizations—a north star that can help inform their interim and long-term plans to decarbonize. Fortescue Metals Group Fortune favors the bold. Indeed, they are committed to achieving ‘real’ net-zero emissions by 2030, a full two decades ahead of the industry’s common practice.
Mining companies have largely been focused on reducing operational emissions. Beyond that they’re currently working to actively gather and track data on their Scope 1, 2, and 3 emissions. This all-encompassing approach allows them to not only take control of their environmental impact, but see where they can do better. The incorporation of this data into their sustainability frameworks is key to measuring progress and holding themselves accountable.
Many of these innovative decarbonization technologies are still in the pipeline and being critically evaluated within the sector. Renewable energy sources are being prioritized as a viable alternative to fossil fuels, providing a cleaner means to power operations. Further, the mining industry is looking to alternative fuels and electrification to help decrease dependence on traditional energy sources. Climate implications Hydrogen is finally being tested in terms of its role in achieving significant emission reductions.
Another big technology under evaluation is Carbon Capture, Utilization and Storage (CCUS). Utilizing an innovative new approach, this method captures all carbon dioxide emissions produced through the processes of mining and burning coal to either store them or convert them into useful products. It is a technology which, when implemented properly, can make significant strides in reducing the entire industry’s carbon footprint.
The repurposing of mines is increasingly being seen as a smart way to support the energy transition. Companies can continue turning these former mining sites into renewable energy projects or other sustainable initiatives. Taking this step is a win for environmental stewardship and their continued operational viability.
Even with these significant improvements, the entire mining industry must contend with significant macroeconomic challenges that threaten to stall momentum toward decarbonization targets. For one, companies encounter challenges due to volatile commodity prices and regulatory uncertainties. Second, they must make huge bets on new technologies to meet these challenges.
Examples of real-world, successful deployments of multiple kinds of decarbonization technologies are starting to hit public circulation more frequently. These feature examples provide practical insights into effective approaches, best practices, and lessons learned. They set the standard for faster and wider adoption throughout the industry.