POWERING A SMOOTH ENERGY TRANSITION

ADOPTING A FLEXIBLE APPROACH WHEN IMPLEMENTING RENEWABLE ENERGY SOLUTIONS IS KEY TO HELPING MINERS ACHIEVE THEIR ESG GOALS.

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Decarbonisation has long been a crucial aspect of ESG (environmental, social and governance) standards across the globe.

This is especially true for Australian mining companies looking to reduce their emissions to 43 per cent below 2005 levels by 2030.

However, the sector will not be able to meet this goal, and the larger push to net-zero by 2050, without adopting strong ESG standards.

“There is increased demand for industry-leading ESG performance,” Aggreko head of ESG, APAC (Asia-Pacific) Matt Hunter told Australian Mining.

“The key stakeholders of mining organisations are driving improved ESG performance, whether it be via investors, shareholders, government bodies or internal commitments.”

While decarbonisation is a priority for several mining companies, there are some factors posing difficulties, including the cost of investing in low-carbon energy sources and associated infrastructure, ongoing regulatory changes and varying societal attitudes.

That being said, the benefits far outweigh the challenges.

“There are growing benefits to decarbonisation either through ‘green finance’ or minimising the impacts of Australian legislative requirements such as the Safeguard Mechanism,” Hunter said.

“The Safeguard Mechanism covers facilities that emit more than 100,000 tonnes (t) of carbon dioxide equivalent (CO2-eq) per financial year and aims to ‘predictably and gradually over time’ reduce baseline emissions to contribute to Australia’s 2030 and 2050 emission reduction targets.

“This will be achieved either through the implementation of technology to reduce pollution or through the purchase of carbon credits.