New MCEL Database Reveals Industry’s Role in Driving CO2 Emissions
German non-profit Urgewald, in collaboration with ten partner organizations, has unveiled the first-ever Metallurgical Coal Exit List (MCEL) to expose the companies spearheading the development of new metallurgical coal projects. The list identifies 160 companies involved in 252 projects across 18 countries, potentially increasing global met coal production by 50%—a staggering 551 million metric tonnes annually.
Heffa Schuecking, director of Urgewald, emphasized the urgent need for financial institutions to withdraw support for this sector, stating, “Financial institutions need to wake up and stop bankrolling the reckless expansion of this industry.”
Metallurgical Coal's Role in Emissions
Marking the 10th anniversary of the Paris Agreement, the global fight to limit temperature rise to 1.5°C faces critical challenges. The iron and steel industry, reliant on metallurgical coal, contributes 11% of global CO2 emissions. Despite advances in green steel technology, the MCEL underscores contradictions in the industry’s trajectory, highlighting the unnecessary expansions as current production can meet demand through 2050, according to the International Energy Agency (IEA).
Key Developers and Projects:
- Australia’s BMA aims to extend Peak Downs mine operations until 2116.
- Russia’s A-Property is advancing massive projects despite sanctions.
- Australia, Russia, and China dominate expansions, while India and Japan remain key consumers.
Lia Wagner, Urgewald’s head of met coal research, pointed out that many thermal coal producers are rebranding their portfolios to include metallurgical coal, an attempt to secure financing despite environmental concerns.
The Call for Transparency
Urgewald’s MCEL database, a sister initiative to its Global Coal Exit List (GCEL), aims to spotlight the metallurgical coal sector’s impact. The database is publicly accessible, urging financial institutions to reconsider their support for the industry’s expansion and align with robust decarbonization strategies.
As governments like the UK face backlash over coal mine approvals, the urgency for meaningful policy interventions has never been greater. Urgewald’s efforts call for transparency and decisive action to mitigate the metallurgical coal sector’s environmental footprint.
