Brazilian mining presents paths to reduce its carbon emissions by up to 90% by 2050

A study by the Essential Minerals Coalition, led by CEBDS, Vale and IBRAM, was delivered to the president of COP30

The Essential Minerals Coalition, an initiative that brings together 14 entities and companies from the mining sector, presented this Thursday, October 9th, to the president of COP30, Ambassador André Corrêa do Lago, a study that highlights potential pathways to reduce its own carbon emissions by up to 90% and contribute to reducing Brazil's total emissions by 2050. The document also reinforces that the Brazilian mining sector has the potential to reduce global emissions from the steel supply chain and support the global electrification process. The initiative is led by the Brazilian Business Council for Sustainable Development (CEBDS), Vale, and the Brazilian Mining Institute (IBRAM). 

The Coalition was formed at the invitation of the COP30 Presidency, which suggested that six key sectors of the economy in Brazil (agriculture, energy, forests, mining, livestock and transport) mobilize to propose decarbonization pathways, to be presented during the event that will be held in Belém, in November. 

The Essential Minerals Coalition study shows that the global energy transition is directly linked to mining and that Brazil is strategically positioned in this scenario, boasting one of the world's greatest geological diversities, a developed mining sector, and a renewable energy matrix, among other factors. In addition to highlighting the sector's potential contribution to the energy transition and the decarbonization of the economy, the study lists five prerequisites for achieving this potential in the coming years. 

"The coalitions symbolize the spirit of collective action that COP30 inspires: businesses, government, and civil society working together, collaboratively and pre-competitively, to build sectoral consensus and science-aligned solutions. The initiative is the starting point of a process that goes beyond paper: transforming consensus into implementation for a low-carbon economy. In this movement, the Minerals Coalition assumes a strategic role by proposing concrete pathways to decarbonize its supply chain and support the global energy transition.", says Marina Grossi, president of CEBDS.

Vale CEO Gustavo Pimenta believes private sector engagement is essential for advancing the climate agenda in Brazil. "For Vale, which has decarbonization as one of the core pillars of its business, it is a source of pride to co-lead this initiative. Especially at a time like this, when energy transition minerals are gaining relevance in global geopolitics. Brazil is at the center of this discussion, as it has enormous production potential for these minerals, in addition to being one of the largest producers of high-quality iron ore, essential for the decarbonization of the steel industry.", evaluates.

“The report shows that mining is an essential pillar of the solution to the climate crisis”, says Raul Jungmann, president of IBRAM. Brazil has a unique competitive advantage, with its geological diversity and clean energy matrix. The study shows that we are ready to supply the minerals the world needs to build a low-carbon economy, but we cannot do it alone.

Levers for reducing emissions

The Coalition analyzed three areas of mining's contribution to decarbonization and the global energy transition. The first, focused on reducing emissions from mining itself, identified a potential reduction of up to 80% in the sector's emissions and the neutralization of approximately 14% of emissions, leading to a total reduction of approximately 90% by 2050. Five levers were established to achieve this scenario: energy efficiency; use of biofuels; expanded use of electricity from renewable sources; electrification of fleets and equipment; and restoration of degraded areas to neutralize residual emissions.

A second axis, dedicated to mining's contributions to reducing emissions from the global iron ore chain, indicated that reductions could reach 110 MtCO2e by 2050 (equivalent to eight times the annual emissions from Brazilian mining in 2022) through the production of inputs for low-carbon steel, such as pellets and briquettes for the direct reduction route. Furthermore, there is the possibility of reducing emissions in activities such as pelletizing, rail transportation, and international shipping, depending on the economic instruments and prerequisites presented in the study.

Regarding energy transition minerals – such as copper, nickel, bauxite, lithium, rare earths, among others – the Coalition estimates that the Brazilian mineral sector could double its production of these minerals by 2050, leading to a reduction in the country's total emissions of up to 300 MtCO2e per year in 2050, equivalent to the total emissions of the states of São Paulo and Minas Gerais combined in 2023. 

This scenario takes into account increasing global production of electric vehicles to an additional 38 million by 2050, and expanding installed wind power generation capacity by an additional 830GW and solar power by an additional 610GW worldwide by 2050, in addition to expanding power grids and energy storage systems.

The study also highlights that the potential contribution of Brazilian mining depends on the creation of a favorable environment, articulated around five prerequisites: improvements in the regulatory and economic landscape, with the implementation of carbon pricing; greater access to technologies with technical maturity and economic viability; logistics, energy, and storage networks with sufficient reach and capacity; "green" financial instruments and consolidated sustainable taxonomies; and a "green premium," an additional payment for products with a lower carbon footprint, in addition to incentives throughout the value chain to promote practices such as circularity. 

Read the study: https://cebds.org/publicacoes/resumo-executivo-da-coalizao-deessential minerals/

About the Essential Minerals Coalition

The Essential Minerals Coalition was formed through the "Global Action Plan" convened by the COP30 Presidency. Bringing together companies, associations, experts, and government representatives, the Coalition consolidated a shared vision for the future, aligning the Brazilian mineral sector's contributions with national and international commitments to decarbonization and energy transition. This collective development took place through workshops, interviews, and sectoral analyses, culminating in a report that summarizes the sector's potential for positive impact and the systemic enablers needed to achieve this potential.

About CEBDS

The Brazilian Business Council for Sustainable Development (CEBDS) is a non-profit civil association that has been promoting sustainable development in Brazil since 1997, through partnerships with governments and civil society, in addition to disseminating the most current concepts and practices on the subject. The voice of the business sector, CEBDS brings together more than 110 of the largest business groups in the country, in addition to being the Brazilian representative of the World Business Council for Sustainable Development (WBCSD), which is present in 36 countries and has 200 member companies worldwide.

About Vale

Vale is a global mining company that exists to improve lives and transform the future together. One of the world's largest producers of iron ore and nickel, and a major producer of copper, Vale is headquartered in Brazil and operates globally. Its operations comprise integrated logistics systems, including approximately 2,000 kilometers of railways, maritime terminals, and 20 ports worldwide.

Vale's ambition is to be recognized by society as a benchmark in safety, the best and most reliable operator, a talent-driven organization, a leader in sustainable mining, and a benchmark in creating and sharing value.

About IBRAM

IBRAM is a private, non-profit organization with over 300 members, responsible for 85% of Brazil's mineral production. It represents ethical, transparent, and inclusive mining, committed to good ESG practices. It has been working for decades to promote socioeconomic development and quality of life. Its actions aim to build a more productive and sustainable future for the mining sector. It leads the mining transition safely and responsibly. It strengthens relationships between mining companies, government, society, and suppliers. It stimulates innovation, disseminates knowledge, and articulates business opportunities. It promotes best practices and connects the sector. It is open to dialogue with public and private organizations. It operates with competence, active listening, and engagement.

CEBDS Press Office

Débora Almeida (Approach) – 21 99417-8545 debora.almeida@approach.com.br  

Vale Press Office 

Daniel Kaz – 21 98901-3301 imprensa@vale.com 

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