MINING DECARBONIZATION

The report analyzes the challenges of decarbonizing Canada's critical minerals sector, noting that while Canada currently has a low-carbon advantage due to clean electricity grids, this edge may erode as other nations transition. It identifies three primary barriers: a lack of market demand for low-carbon minerals (no 'green premium'), fragmented supply chain infrastructure hindering traceability, and supply-side hurdles including the slow commercialization of electric ultra-class haul trucks and limited access to low-carbon power for off-grid mines. The author recommends a policy toolkit including the integration of emissions intensity into support programs, funding for R&D in technologies like direct lithium extraction, and the maintenance of large-emitter trading systems.

• A business-as-usual approach to expanding critical minerals mining could significantly increase emissions; specifically, emissions from copper, nickel, and lithium production are estimated to be 1.6 times higher in 2040 than in 2023.
• Canada currently holds a competitive advantage in copper emissions intensity due to low Scope 2 emissions from clean electricity grids, but this advantage is vulnerable as other nations reduce their own intensities.
• There is currently very little market demand or price differentiation for low-carbon minerals, with buyers generally unwilling to pay a 'green premium'.
• Decarbonizing open-pit mines is hindered by the fact that fully-electric ultra-class haul trucks may not be commercially available before 2030.
• Underground mining is progressing faster in electrification, with battery-electric equipment already being deployed at sites such as the McIlvenna Bay project in Saskatchewan and the Brucejack mine in British Columbia.
• The EU's upcoming battery regulation, with enforcement beginning in February 2027, will require battery passports that could help Canadian producers differentiate their low-carbon minerals.

APA

Al-Aini, E. (n.d.). MINING DECARBONIZATION. Canadian Climate Institute. https://climateinstitute.ca/wp-content/uploads/2025/05/Mining-decarbonization.pdf

Chicago

Al-Aini, Eyab. MINING DECARBONIZATION. Canadian Climate Institute, n.d. https://climateinstitute.ca/wp-content/uploads/2025/05/Mining-decarbonization.pdf.

Wikipedia

{{cite report |last1=Al-Aini |first1=Eyab |title=MINING DECARBONIZATION |publisher=Canadian Climate Institute |url=https://climateinstitute.ca/wp-content/uploads/2025/05/Mining-decarbonization.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alainindmining, author = {Al-Aini, Eyab}, title = {{MINING DECARBONIZATION}}, institution = {Canadian Climate Institute}, url = {https://climateinstitute.ca/wp-content/uploads/2025/05/Mining-decarbonization.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }