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ARTICLE · 24 MARCH 2023

Decarbonization: The Requirements For—And Role Of—Mining Companies

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Mining companies are closely linked to the energy transition, both as businesses for which new requirements apply and as suppliers of critical minerals used

GlobalEnergy and Natural Resources

EXECUTIVE SUMMARY

Mining companies are closely linked to the energy transition, both as businesses for which new requirements apply and as suppliers of critical minerals used to produce electric vehicles batteries, solar panels and wind turbines, among other products. In this Legal Update, we discuss emerging climate change-related guidelines and requirements, give examples of how mining companies are adjusting their operations in response to the energy transition, and note new forms of financing that industry participants can pursue.

BACKGROUND

The race for decarbonization accelerated with the Paris Climate Accord in 2015 when 195 countries agreed to work toward limiting global warming to 1.5 Celsius (from pre-industrial levels). Three years later, in 2018, the Intergovernmental Panel on Climate Change suggested that global emissions would need to be carbon neutral or "net zero" by 2050 to reach this 1.5 Celsius target. This ambitious and seemingly impossible

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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