Insight
Balancing the scales: The role of carbon offsets in metals and mining
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The metals and mining (M&M) industry, responsible for 15% of global emissions, faces significant challenges in reducing its carbon footprint due to heavy reliance on fossil fuels. This insight explores the role of high-quality carbon offsets in complementing traditional mitigation efforts and addressing emissions across the value chain. With increasing pressure from investors to meet climate targets, M&M companies must adopt innovative solutions. High-quality carbon offsets offer flexibility and a pathway to net-zero targets, though the industry's engagement in the voluntary carbon market is minimal. To seize opportunities, M&M companies need proactive carbon management strategies, robust emissions accounting, and diverse decarbonisation technologies. Key findings emphasize the strategic importance of carbon offsets for "hard-to-abate" emissions and the need for M&M companies to integrate these tools into their sustainability goals for transformative change.
Table of contents
- Executive summary
- Key highlights
- Introduction
- The current state of M&M and carbon offsets
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Carbon offsets
- High-quality credits
- Types of projects
- Enhanced rock weathering and mineralisation
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Carbon management plan
- Emissions in the M&M industry
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Decarbonisation opportunities and challenges for M&M
- Opportunities
- Challenges
- Carbon offset strategies
- Conclusion
Tables and charts
This report includes the following images and tables:
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Hard-to-abate M&M emissions by sectorM&M companies have yet to fully embrace carbon offsets as a decarbonisation toolSix companies represent most of the carbon offset transactions in M&M; however, the percentage of emissions offsets is still very low
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Yearly carbon offset credit retirements and weighted average price in the VCMThe four key steps to build a successful corporate carbon emission management strategyTable 1. Premium prices per high-quality indicatorsTable 2. Risk levels associated with selected types of carbon projectEnhanced weathering prices and suppliersScope 1 and 2 emissions as a share of total emissions by sectorCarbon targets and diversified mining companiesEAF share of global crude steel production (Base case, %)Example of a scope 1 carbon strategy for the M&M sector
- 1 more item(s)...
What's included
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