Rio Tinto in $7.5bn plan to halve carbon emissions by 2030

Mining giant Rio Tinto said it planned to invest $7.5bn halving carbon emissions by 2030, more than tripling its previous target.

The Anglo-Australian firm on Wednesday said the plan would apply to direct and indirect emissions. It added that it was also targeting a 15% cut to emissions by 2025, five years earlier than previously.

Rio also said it expects to rapidly deploy 1 gigawatt (GW) of solar and wind power generation in the key Pilbara iron-ore production region in Western Australia to replace gas-fired power generation.

The Boyne Island and Tomago aluminium smelters will be decarbonised, which will require an estimated 5 GW of solar and wind power generation. Rio's aluminium business accounts for 70% of its scope 1 and 2 emissions.

“In recognition of the broader carbon footprint of the commodities it produces, Rio Tinto will accelerate its investment in research and development of technologies that enable its customers to decarbonise,” the company said.

“Working in partnership with governments, suppliers, customers, academia and others Rio Tinto will continue to develop technologies … for carbon-free aluminium and multiple pathways to produce green steel.”

Rio added that it would prioritise growth capital in commodities, with an ambition to double growth capital expenditure to about $3bn a year from 2023 to meet extra demand created by the global drive to net zero emissions.

"All our commodities are vital for the energy transition and continue to benefit from ongoing urbanisation. We have a clear pathway to decarbonise our business and are actively developing technologies that will enable our customers and our customers' customers to decarbonise,” said chief executive Jakob Stausholm.