{"id":28942,"date":"2022-06-09T16:28:01","date_gmt":"2022-06-09T06:28:01","guid":{"rendered":"https:\/\/www.machines4u.com.au\/mag\/?p=28942"},"modified":"2022-06-09T16:28:02","modified_gmt":"2022-06-09T06:28:02","slug":"decarbonisation-on-the-mining-industry","status":"publish","type":"post","link":"https:\/\/www.machines4u.com.au\/mag\/decarbonisation-on-the-mining-industry\/","title":{"rendered":"The Cost of Decarbonisation on the Mining Industry"},"content":{"rendered":"\n

Presented by Pickles<\/a><\/p>\n

An upsurge of public support for climate action, both at home and abroad, has put several industries on notice that more needs to be accomplished to reduce CO2<\/span>\u00a0emissions due to the impact it is having on the climate.<\/span><\/p>\n

Politicians have taken heed of the movement and are rallying around this notion. This has been witnessed at several high-profile climate related events. One of these is the Paris Agreement, which has the goal of reaching net-zero CO2<\/span>\u00a0<\/span>emissions by 2050, whilst maintaining mean global temperatures rise to\u00a0<\/a>below 2<\/a><\/span>o<\/a><\/span>C pre-industrial levels<\/a><\/span>. This agreement has been signed by 193 countries that are committed to global climate change.<\/span><\/p>\n

More recently, the Glasgow Climate Change Conference (COP 26) was able to establish a commitment towards net-zero emissions by a staggering 137 countries, albeit each having varying target dates.<\/span><\/p>\n

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Map showing net zero pledges across the globe. Source: Pickles via Al Jazeera<\/figcaption><\/figure>\n

Countries are already starting to act. In the US, the\u00a0<\/a>Green New Deal<\/a><\/span>\u00a0is a government led, society-wide effort to significantly reduce emissions to net-zero over the next ten years and shift the US economy to be less carbon intensive. Across the Atlantic, the European Green Deal is making huge strides towards the goal of a climate neutral European Union by 2050.<\/span><\/p>\n

The Economics of Decarbonising \u00a0<\/span><\/strong><\/h2>\n

Going green and decarbonising is not a cheap exercise.<\/span><\/p>\n

The Green New Deal (GND) for instance is a climate change proposal estimated to cost around\u00a0<\/a>$8 trillion over a 10-year span<\/a><\/span>. This policy is a true investment where returns are expected, not a government grant or handout. But like any investment, returns are never guaranteed and it\u2019s usually the taxpayer that suffers, should a renewable project not pack the punch it was intended to deliver.<\/span><\/p>\n

The European Green Deal is also looking like a costly initiative with the European Commission foreseeing\u00a0<\/a>a \u20ac1 trillion investment<\/a><\/span>\u00a0to fund carbon capture and renewable energy projects. There is a good chance this number may in fact rise even further due to the sanctioning of Europe\u2019s prolific energy provider, Russia, and the Union\u2019s desire to become less reliant on its cheap gas and oil.<\/span><\/p>\n

These eye-watering amounts haven\u2019t gone unnoticed here in Australia where decarbonisation too has been supported by the public, making governments and corporations reassess their long-term energy goals. For Australia, it’s estimated\u00a0<\/a>over $165 billion<\/a><\/span>\u00a0will need to be spent on new clean energy projects over the next 8 years if we are to realistically reach net-zero emissions by 2050. To reach this figure, Australia would need to triple its current annual spend of $7.7 billion for renewable energy projects.<\/span><\/p>\n

Decarbonising the Mining Industry<\/span><\/strong><\/h2>\n

The global metals and mining industry is accountable for around\u00a0<\/a>8% of carbon emissions<\/a><\/span>. Many environmentalists point fingers at the industry for its dirty practices and contribution to global warming. Even if it is done via a tweet from a mobile phone, that can be made up of over\u00a0<\/a>30 different rare metals<\/a><\/span>, whilst sitting in their\u00a0<\/a>lithium-ion-phosphate battery powered electric vehicle<\/a><\/span>.<\/span><\/p>\n

The key with mining is its economic contribution, which when compared to that of other industries, has a very small footprint. Most mining products have a\u00a0<\/a>uniquely high value<\/a><\/span>\u00a0per tonne of CO2\u00a0<\/span>compared to that of energy, agriculture and construction, which contribute\u00a0<\/a>25%<\/a><\/span>,\u00a0<\/a>13%<\/a><\/span>\u00a0and\u00a0<\/a>38%<\/a><\/span>\u00a0respectively to total global carbon emissions.<\/span><\/p>\n

To reduce this 8% figure, decarbonisation methods would need to be implemented. There are several ways to do this.<\/span><\/p>\n