Brazil's Essential Minerals Coalition— which includes Vale, national mining institute Ibram and 13 other companies and institutes — can reduce its greenhouse gas emissions by up to 90pc by 2050 from 2022, according to a study it published recently.
The plan listed five requirements to better contribute to energy transition and decarbonization targets in the mining sector, such as improved regulations related to carbon pricing, expanded storage and cargo handling capacity and a "green premium" for low-carbon products.
The coalition presented the plan to the UN Cop 30 climate summit's presidency on Thursday. Its initiative comes from a suggestion of the Cop 30 presidency to mobilize key Brazilian economy sectors — such as agriculture, energy, forestry, mining, livestock and transport — by November to propose decarbonization plans in Belem.
The coalition will look to reduce its emissions related to mining activities by 80pc and neutralize an additional 14pc of them, totaling around 90pc by 2050, it said. This potential reduction relies on the use of biofuels, the expansion of renewable sourced-power, fleet electrification and recovery of degraded lands, the coalition said.
Additionally, the coalition also proposed using low-carbon steel, such as pellets and briquettes, to reduce emissions in the iron ore global chain by up to 110mn metric tonnes (t) of CO2 by 2050.
The plan also estimates doubling production of energy transition minerals, such as copper, nickel, lithium and rare earths elements, by 2050. Higher demand for electric vehicles and expanding solar and wind power generation capacity should push production of those minerals, according to the study. The sector can reduce its CO2 emissions by up to 300mn t/yr by 2050 by increasing production of those minerals, according to the coalition estimates.
"Brazil has a unique competitive advantage of owning geological diversity and a clean power matrix", Ibram's president Raul Jungmann said. "The study proves we are ready to supply minerals that the world needs to build a low-carbon economy."
Vale has committed to reduce its total emissions from scopes 1 and 2 by 33pc by 2030 from 2017 levels. It also aims to reduce its liquid scope 3 emissions by 15pc by 2035 from 2018 levels. The company wants to eliminate scopes 1 and 2 liquid emissions by 2050.
