DATA & FIGURES
BHP has set a target of cutting emissions to 30% below 2020 levels by 2030, and its longer-term net zero goal requires significant emissions reductions from its mining operations. The company has already achieved a 2.3% reduction in onsite emissions covered by the safeguard scheme this year. The Australian government's safeguard mechanism requires 200 large industrial emitting sites to cut emissions intensity year-on-year, with a goal of reaching net zero by 2050.
THE SCENARIO
The global mining industry is facing increasing pressure to decarbonize and reduce greenhouse gas emissions. The Australian government's safeguard mechanism is a key policy aimed at driving emissions reductions in the industry, but critics argue that it is not enough to meet climate targets. The use of carbon offsets and the lack of a carbon price are seen as major flaws in the current policy, and Dr. McKay's comments highlight the need for stronger government action to drive decarbonization.
DIRECT QUOTE
"The preferred policy is, of course, a carbon price that is calibrated to move the needle on hard-to-abate emissions. Inserting a carbon-price obligation like that into the investment process at major resources companies would lead to swifter action." — Dr. Huw McKay, Visiting Fellow, Australian National University's Crawford school of public policy
BBN INSIGHT
The BBN Insight analysis suggests that the lack of a carbon price and the reliance on voluntary commitments from companies are major barriers to decarbonization in the mining industry. The Positive Side: A carbon price could drive investment in decarbonization technologies and reduce emissions in the industry. The Negative Side: The lack of a carbon price and the use of carbon offsets could lead to continued emissions growth and undermine climate targets. The impact on everyday people, such as workers in the mining industry, could be significant, with potential job losses and changes to working conditions. Investors in the industry may also face risks and opportunities, depending on the policies implemented by governments.