How an accounting shift could conceal millions of tonnes of coal mine emissions

The report argues that a proposed shift toward unverified company-led emissions reporting (Method 2) in Australian open-cut coal mines allows operators to significantly understate their climate impact. By analyzing eight operating and two proposed mines, Ember finds that some company-led estimates are up to 135 times lower than state-based averages, leading to the 'erasure' of millions of tonnes of CO2-e from national inventories. The document criticizes the Australian government for proposing to expand this self-reporting regime without implementing the Climate Change Authority's recommendations for mandatory top-down verification and increased transparency.

• The shift from state-based emission factors (Method 1) to company-led estimates (Method 2) has resulted in the removal of nearly 8.5 million tonnes of CO2-e from reporting across three specific coal mines since 2016.
• Company-led estimates can be drastically lower than state-based averages; for example, the Carmichael mine's estimate is 135 times smaller than the recommended Queensland state-based average.
• The report identifies significant reporting gaps at specific sites: Hunter Valley Operations (HVO) would have reported over 5.5 million tonnes more Scope 1 emissions between 2016 and 2023 if it had used the NSW state-based factor, and Maules Creek reduced its reporting by over 1.8 million tonnes of CO2-e after switching to a company-led estimate in 2021.
• Under-regulated reporting could lead to massive future omissions; for only two coal mines, 47 million tonnes of CO2-e could be erased by 2050 if expansion plans are approved.
• The Climate Change Authority (CCA) described the existing measurement standards for coal mines as failing to keep pace with global developments and urged the institutionalization of mandatory top-down verification systems.
• The current Method 2 framework lacks transparency and independent oversight, as companies are not required to share sampling results, methodology, or algorithms publicly, nor are they required to have estimates externally reviewed.
• The reporting shift at BMA's Caval Ridge mine alone is equivalent to erasing more than the annual median emissions for a coal mine reporting to the Safeguard Mechanism.

APA

Wright, C. (2024). How an accounting shift could conceal millions of tonnes of coal mine emissions. Ember. https://ember-energy.org/app/uploads/2024/06/Report-Self-led-estimates-conceal-millions-of-tonnes-of-CO2-e-June-20-2024-1.pdf

Chicago

Wright, Chris. How an accounting shift could conceal millions of tonnes of coal mine emissions. Ember, 2024. https://ember-energy.org/app/uploads/2024/06/Report-Self-led-estimates-conceal-millions-of-tonnes-of-CO2-e-June-20-2024-1.pdf.

Wikipedia

{{cite report |last1=Wright |first1=Chris |title=How an accounting shift could conceal millions of tonnes of coal mine emissions |publisher=Ember |date=20 June 2024 |url=https://ember-energy.org/app/uploads/2024/06/Report-Self-led-estimates-conceal-millions-of-tonnes-of-CO2-e-June-20-2024-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wright2024how, author = {Wright, Chris}, title = {{How an accounting shift could conceal millions of tonnes of coal mine emissions}}, institution = {Ember}, year = {2024}, month = jun, url = {https://ember-energy.org/app/uploads/2024/06/Report-Self-led-estimates-conceal-millions-of-tonnes-of-CO2-e-June-20-2024-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }