Methane from coal mining is a blind spot in steel’s climate impact

The report argues that methane emissions from coking coal mining are a significant but under-accounted 'blind spot' in the steel industry's climate impact. It highlights that coking coal is more methane-intensive than thermal coal and that Australian mines, which supply over half of the global seaborne coking coal market, consistently underreport these emissions. Using IEA data and GWP20 metrics, the report estimates that mining emissions can add 10% to 17% to the emission intensity of blast furnace steel, with some 'gassiest' mines potentially doubling the climate footprint. It concludes that nearly half of these emissions could be abated using existing technologies at a cost lower than the market price of Australian Carbon Credit Units.

• Coking coal extraction is a major source of methane emissions, which are more intense than those from thermal coal because coking coal is typically mined from deeper underground seams. The iron and steel industry is the primary driver of this demand, consuming approximately 75% of global coking coal.
• Australia is a critical supplier of coking coal, providing more than 50% of the global seaborne market. In 2024, coking coal mining in Australia emitted approximately 867 kilotonnes of methane, which equals roughly 71.5 million tonnes of CO2-equivalent emissions annually when using the GWP20 metric.
• Methane emissions from Australian coal mines are consistently underreported, partly due to the use of standardised emission factors instead of direct measurement, especially in open-cut mines. Ember's analysis of six Australian coal regions from 2020-2021 found actual methane levels were at least 40% higher than official reports.
• Methane emissions from the mining of coking coal add an estimated 10% to 17% to the emission intensity of steel produced via blast furnaces (based on GWP20). In extreme cases, coal from the most methane-intensive mines can more than double the climate footprint of blast furnace steel.
• Abating methane emissions from Australian metallurgical coal mines is technically and economically viable. The IEA estimates that 45% of these emissions could be abated using existing methods, and 38% could be cut at a cost lower than the market price of Australian Carbon Credit Units, with an average mitigation cost under $14.6 USD per tonne of CO2e.

APA

Ember (2025). Methane from coal mining is a blind spot in steel’s climate impact. https://ember-energy.org/chapter/methane-from-coal-mining-is-a-blind-spot-in-steels-climate-impact/

Chicago

Ember. Methane from coal mining is a blind spot in steel’s climate impact. 2025. https://ember-energy.org/chapter/methane-from-coal-mining-is-a-blind-spot-in-steels-climate-impact/.

Wikipedia

{{cite report |author=Ember |title=Methane from coal mining is a blind spot in steel’s climate impact |date=4 September 2025 |url=https://ember-energy.org/chapter/methane-from-coal-mining-is-a-blind-spot-in-steels-climate-impact/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025methane, author = {{Ember}}, title = {{Methane from coal mining is a blind spot in steel’s climate impact}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/chapter/methane-from-coal-mining-is-a-blind-spot-in-steels-climate-impact/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }