Rio Tinto to invest $1 billion to help meet new climate change targets

Sees greater scrap use in low-emission steel making

Rio Tinto has decided to invest around $1 billion over the next five years to support the delivery of its new climate change targets and a company objective for net zero emissions from operations by 2050.

The mine also sees increased material reuse and recycling in a low-carbon economy leading to more use of steel scraps and lesser use of iron ore.

“We also expect to see structural changes across our value chains as consumers demand greener products. The potential downsides to iron ore revenues from a greater use of scrap across the steel value chain are expected to be offset by upsides for aluminium and copper – which are both essential for the electrification of the global energy system and the deployment of low-carbon power solutions such as solar and wind,” Rio Tinto said in its second climate report, published recently.

Targets for 2030

30 percent reduction in emissions intensity from 2018 levels

15 percent reduction in absolute emissions from 2018 levels

Under these targets, Rio Tinto’s overall growth between now and 2030 will be carbon neutral.

Rio Tinto chief executive J-S Jacques said “Climate change is a global challenge and will require action across nations, across industries and by society at large. New technologies, partnerships and effective government policies will be key in achieving this goal but today there is no clear pathway for the world to get to net zero emissions by 2050.

“The ambition is clear but the pathway is not and the challenge for the world, and for the resources industry, is to continue the focus on poverty reduction and wealth creation, while delivering climate action. This will require complex trade-offs which means we all need to face up to some challenging decisions and have an honest conversation.