Decarbonizing Mining - 2026

Decarbonizing Mining - 2026

Summary

Due to the significant volume of emissions from the mining sector, growing ESG (Environmental, Social, and Governance) concerns, and the rising demand for essential raw materials required for the energy transition, decarbonizing mining has become crucial for global climate mitigation and achieving net-zero goals. This report assesses the decarbonization potential, readiness, and adoption constraints of the main pathways for mining, including electrification, renewable power, alternative fuels, hydrogen, and carbon capture, utilization, and storage (CCUS).

• This report examines the macroeconomic conditions shaping investment decisions, including high upfront capital requirements, commodity price volatility, and supply chain bottlenecks. To provide an outlook on industry progress, the report also reviews emissions performance and summarizes both interim and long-term climate targets across a selection of mining companies. It shows that solutions are likely to scale on different timelines depending on technology maturity, infrastructure requirements, and mine site operating conditions.
• In the near term, renewable electricity is the most readily deployable lever for reducing operational emissions and is increasingly being implemented through power purchase agreements (PPAs) and on-site renewable generation. Many miners are also pursuing pragmatic interim measures, such as trolley-assist and alternative fuels, to support near-term targets and operational efficiency, though adoption is frequently moderated by capital discipline.
• Over the medium to long-term, electrification remains the central pathway to deep decarbonization and can improve cost performance over the asset life. However, scalability is limited by the need for enabling infrastructure, including renewable generation, co-located battery energy storage, transmission and distribution upgrades, and charging or battery swapping capability.
• Hydrogen and CCUS remain nascent in mining and are expected to play complementary roles in hard-to-electrify applications, subject to infrastructure availability, project economics, and technology development.

Key Highlights

• Renewables are delivering near-term emissions reduction, but tighter capital discipline following commodity-price volatility is slowing investment in higher-cost levers such as fleet electrification, CCUS, and low-carbon hydrogen.
• Net-zero commitments are increasingly standard among major miners, yet the concentration of targets in 2050 suggests many are deferring the hardest abatement and capital-intensive measures until late in the transition.
• Most major mining companies have set themselves interim emissions targets. A standard benchmark is a 30% reduction in Scope 1 and 2 emissions by 2030. However, Fortescue has set the ambitious target of ‘real’ net-zero by 2030.
• In the near term, renewable electricity is the most readily deployable lever for reducing operational emissions and is increasingly being implemented through power purchase agreements (PPAs) and on-site renewable generation. Many miners are also pursuing pragmatic interim measures, such as trolley-assist and alternative fuels, to support near-term targets and operational efficiency, though adoption is frequently moderated by capital discipline
• Over the medium to long-term, electrification remains the central pathway to deep decarbonization and can improve cost performance over the asset life. However, scalability is limited by the need for enabling infrastructure, including renewable generation, co-located battery energy storage, transmission and distribution upgrades, and charging or battery swapping capability.

Scope

• Overview of where emissions come from across the mining value chain
• Net-zero target for selected mining companies
• Mining companies’ analysis of interim and long-term emission targets
• Mining companies’ Scope 1 and 2 emissions data
• Analysis of different decarbonization technologies (renewable energy, alternative fuels, electrification, hydrogen, CCUS), including timeline for commercial viability and suitability assessment
• Macroeconomic challenges facing decarbonizing the mining industry
• Case studies of decarbonization technologies being trialled or implemented
• Analysis on how repurposing mines can aid the energy transition

Reasons to Buy

• Identify the market trends within the industry and assess what the biggest players in mining are doing to reduce emissions.
• Develop market insight of the major technologies used to decarbonize the industry, including timelines for their respective commercial viability, and the drivers and barriers to their implementation.
• Facilitate the understanding of what is happening within hard-to-abate industries as they look to become carbon neutral by 2050.