It’s too late to simply prepare for decarbonisation, mining leaders now need to move into the execution phase. But how are industry leaders managing decarbonisation and its flow-on financial impacts?
Reducing the Carbon Footprint
The global mining industry is moving from the preparation phase to the execution phase of its decarbonisation efforts, driven by commitments to achieve net-zero Scope 1 and 2 emissions by 2050.¹ Eliminating these operational emissions relies heavily on displacing fossil fuels; companies can potentially reduce on-site diesel emissions by up to 80 percent simply by employing battery-powered and hydrogen fuel cell electric trucks.² When a fully electrified mine is paired with renewable energy sources, its overall carbon footprint can be lowered by 60 to 80 percent.³
Beyond reduction, there is also a growing focus on how emissions can be captured, reused, or monetised, particularly in high-emission operations such as coal mining, where fugitive methane presents both a risk and an opportunity.
The Complexity of the Transitions
However, as the industry transitions into execution, achieving net-zero is proving highly complex.⁴ According to Deloitte, the pace of decarbonisation is being challenged by intersecting concerns around energy security, supply chain vulnerabilities, and the current technological maturity of sustainable equipment.⁵ Furthermore, KPMG notes that the fundamental operational challenges of decarbonisation are intensifying as declining Safeguard Mechanism baselines begin to financially bite operators.⁶
In response, some operators are developing integrated solutions that convert waste emissions into usable energy, turning compliance challenges into potential value streams.
The Price of Going Green
The financial incentives and market realities for decarbonisation are also shifting.⁷ By significantly lowering emissions, mining companies hope to capture “green-product premiums” in the market.⁸ However, industry leaders acknowledge there is widespread scepticism regarding whether end-consumers are truly willing to pay a “green premium” for everyday products.⁹ Regardless of consumer premiums, mining companies must invest in authentic, value-led ESG strategies and the tracking technology required to prove their progress, as regulators are actively prosecuting companies accused of “greenwashing”.¹⁰
Conclusion
Decarbonisation is key for sustainability. But the change won’t be without its difficulties. Mining leaders need to bridge the gap between legacy infrastructure and future-proofed technologies to ensure they are moving forward on solid foundations. The path to net-zero needs to be built on robust engineering and granular data that stands up to the most rigorous market, so companies can reap the full scale of benefits, both from financial and environmental standpoints.
The opportunity lies not only in reducing emissions, but in rethinking how carbon is managed across the entire operation, from cost centre to potential asset.
References
- GlobalData, Australian miners power ahead with equipment electrification, 2024; Deloitte, Tracking the trends 2025, 2025.
- GlobalData, 2024.
- McKinsey & Company, Mining electrification could double their electricity demand, 2023.
- Deloitte, 2025.
- Deloitte, 2025.
- KPMG, Australian Mining Risk Forecast 2025, 2025.
- McKinsey & Company, 2023; CSIRO, State of Play: a deep dive into global mining trends, 2024.
- McKinsey & Company, 2023.
- CSIRO, 2024.
- Deloitte, 2025; KPMG, Australian Mining Risk Forecast 2024, 2024.
