Brazilian miner Vale plans to invest up to BRL 13 billion ($2.55 billion) in decarbonization initiatives aimed at achieving its voluntary emissions reduction targets and addressing climate-related risks, according to a report by Reuters. However, the company did not specify a timeframe for the planned investment.
Focus on operational emissions reductions
Of the total planned investment, up to BRL 4 billion ($785.50 million) will be directed toward decarbonizing Vale’s own operations. According to the company, 24 percent of this amount is expected to be invested in the medium term, while the remaining 76 percent will be allocated over the long term.
A further BRL 8 billion ($1.57 billion) will be linked to the development of industrial complexes focused on low-carbon technologies. These projects include technologies supporting the steelmaking transition as well as the development of iron ore briquettes. The remaining BRL 1 billion ($196.37 million) will be allocated to research and development activities.
Vale highlights progress and future risks
Vale stated that it invested BRL 9 billion in decarbonization initiatives between 2020 and 2025.
Grazielle Parenti, executive vice president of sustainability at Vale, said the company sees both environmental and financial benefits from its decarbonization efforts. She noted that major projects and investment decisions are evaluated through an environmental, social and governance framework that assesses potential risks and opportunities.
The company also warned that it could face carbon-related costs of up to BRL 22 billion ($4.32 billion) on a present-value basis due to carbon pricing mechanisms, with the most significant impacts expected from 2030 onward.