Hidden impact of Australian coking coal in steelmaking

This report by Ember assesses the climate impact of methane emissions from Australian coking coal extraction on major steelmakers in the EU, Japan, and South Korea. It highlights a significant gap in Scope 3 emissions reporting, noting that methane from Australian coal can add 10-17% to the short-term climate impact of blast furnace-based steelmaking, with some 'super-emitting' mines potentially doubling this impact. The report argues that cutting coal mine methane is a cost-effective near-term decarbonisation step and warns of regulatory risks under the EU Methane Regulation.

• Methane emissions from Australian coking coal extraction significantly increase the climate footprint of blast furnace-based steelmaking, adding an estimated 10% to 17% to its short-term emission intensity based on GWP20.
• Australia's coking coal mines are a major source of methane, emitting an estimated 867 kt in 2024, which is approximately double the emissions of the country's entire oil and gas sector (368 kt).
• There is persistent underreporting of coal mine methane in Australia, particularly at open-cut mines. In a case study of the Hail Creek mine, independent data suggests emissions were up to three times higher than reported by the operator between 2023 and 2024.
• Major global steelmakers ArcelorMittal, Nippon Steel, and POSCO overlook methane embedded in their coal supplies. Including estimated Australian coal mine methane would increase their reported Scope 3 emissions by between 6% and 15%.
• Reducing methane emissions from Australian metallurgical coal is technically and economically viable. The IEA estimates that 45% (388 kt) of these emissions could be abated using existing methods, with 38% (333 kt) achievable at a cost lower than the market price of Australian Carbon Credit Units (ACCUs).
• The EU Methane Regulation, adopted in 2024, creates regulatory risks for steelmakers. From 2027, foreign coal suppliers must meet monitoring and reporting standards equivalent to EU mines, and by 2030, imported coal must comply with a maximum methane intensity.

APA

Chang, Y.-T., & Assan, S. (2025). Hidden impact of Australian coking coal in steelmaking. Ember. https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf

Chicago

Chang, Yu-Ting, and Sabina Assan. Hidden impact of Australian coking coal in steelmaking. Ember, 2025. https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf.

Wikipedia

{{cite report |last1=Chang |first1=Yu-Ting |last2=Assan |first2=Sabina |title=Hidden impact of Australian coking coal in steelmaking |publisher=Ember |date=4 September 2025 |url=https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chang2025hidden, author = {Chang, Yu-Ting and Assan, Sabina}, title = {{Hidden impact of Australian coking coal in steelmaking}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/app/uploads/2025/09/Report-Hidden-impact-of-Australian-coking-coal-in-steelmaking.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }