In addition, the company states: “For a standalone combined coal and carbon steel materials business, we would intend for the demerged company to continue to oversee the responsible decline of its thermal coal operations in line with Glencore’s current targets and ambition to achieve net zero emissions by 2050, subject to a supportive policy environment.” Glencore’s coal spin-off plan: Responsible. [...] Figure 3: Glencore’s Scope 3 emissions rose in 2023 on the back of increased coal production Source: Glencore 2024-2026 Climate Action Transition Plan The management of a spun-off, pure-play coal company is likely to be far more bullish about the long-term outlook for coal and less likely to want to manage down capacity than the management of a diversified miner. [...] Glencore also uses the new plan to paint a more positive picture for the future of metallurgical coal, attempting to link demand with the need for steel to build renewable energy infrastructure: “We therefore anticipate that steelmaking coal operations are expected to follow a different emissions reduction trajectory than thermal coal operations.” However, IEEFA analysis shows that the outlook for. [...] Examples of recent coal divestments Recent examples of coal divestments by diversified miners – either via spinning off a pure- play coal miner, or by selling assets to a pure-play coal miner – demonstrate the risk that the new management of the proposed spin-off would abandon Glencore’s plans for the run- down of mine capacity and the responsible reduction of Scope 3 emissions. [...] With no Scope 3 emissions target, Thungela states: “We advocate for a technology agnostic approach to a low carbon future, to address our scope 3 emissions, through our membership of the FutureCoal Alliance and the Coal Industry Advisory Board (CIAB) to the International Energy Agency (IEA).” The company claims that these organisations will help address the Scope 3 emissions of coal mining through.
- Pages
- 9
- Published in
- United States of America
