Coal Mine Methane: An overview for investors
Coal Mine Methane
An overview for investors
Coal production is a major source of methane emissions – and investors in coal and downstream sectors like steel have a role to play in cleaning it up.
Report summary
Coal mining emits methane, a major climate pollutant. Coal mining is estimated to emit about half as much methane each year as the oil and gas industry. Although coal mine methane (CMM) is well understood as a mining safety hazard, it has received less attention as a driver of climate change.
Metallurgical coal should be a focal point for mitigation. Met coal mining is particularly methane intensive, and met coal will continue to play a role in conventional steel production while the industry transitions to lower-carbon solutions. CMM abatement should be an integral part of the industry’s climate transition.
Attention to CMM is increasing. Global methane efforts have so far focused mainly on oil and gas, but evolving initiatives are likely to put a greater spotlight on coal.
The financial sector should engage with coal mining and steel companies on CMM. So far, most mining and steel companies have limited to no disclosures or commitments around CMM. We suggest questions that investors can ask to understand company performance on this issue.
Estimating the cost of CMM abatement
Click to enlarge image
Coal producers should reduce CMM emissions by:
- Prioritizing the mining of lower-intensity coal seams
- Increasing pre-mining gas drainage
- Diverting and utilizing drained gas
- Eliminating ventilation air methane emissions through oxidation or recovery and use
- Taking other measures consistent with CMM best practice.
Investors can raise the importance of CMM measurement and abatement in company engagements and encourage concrete steps to reduce emissions.
Additional Resources
Read & Share
Coal mine methane: An overview for investors
Coal production is a major source of methane emissions – and investors in coal and downstream sectors like steel have a role to play in cleaning it up.
