Policy blind spots slow mining decarbonization in Commodity News 15/06/2026 A recent investigative series attributed BHP’s lack of progress on diesel decarbonisation to revised ambitions by the mining giant, but governments share some responsibility. Policy settings not only carry negligible consequences for inaction on diesel emissions, but miners are effectively rewarded for taking no action. IEEFA’s January review found a disconnect between federal emissions projections and reality. Figure 1 shows 47.3 million tonnes of carbon dioxide (MtCO2e) of reported mining Scope 1 (direct) emissions in FY2023–24 — up to 68Mt allowing for potential underreporting, including 20.7MtCO2e based on International Energy Agency/Ember methane gap data. Policy mechanisms are strongest for underground coalmining, and partial for metals and iron ore diesel decarbonisation; about 20Mt of emissions is covered, and that coverage is uneven. Most open-cut mine diesel emissions abatement is compromised by counterproductive policy incentives. There is no national or resources sector target for diesel decarbonisation. Existing policies, such as the Safeguard Mechanism, bundle methane and diesel together, and drive change on neither. The NSW Net Zero Commission (NZC)’s Spotlight report found the Safeguard Mechanism, “does not provide sufficient incentive to ensure the on-site abatement that is required”. To offset their emissions, miners can earn and sell Australian Carbon Credit Units (ACCUs). However, a combination of low ACCU prices and unbounded use of offsets, limits its effectiveness. At last month’s NSW Joint Standing Committee on Net Zero Future hearing, the NSW NZC confirmed that the resources sector was one of only two NSW sectors whose emissions were projected to increase — adding to the already significant 2030 target gap. Net Zero commissioner Katerina Kimmorley told the hearing that, “coal sector emissions in 2030 need to be lower than recently reported, not higher, and that’s not