BHP says decarbonisation expected to ‘drive demand’

Mining company BHP has released an economic and commodity outlook that lists decarbonisation as a driver of demand for “decades to come”. BHP expects the need for decarbonisation infrastructure and transition supply chains to increase demand for not only crude steel but also copper and nickel. According to the outlook: “Investment that seeks to abate greenhouse gas (GHG) emissions and/or adapt to, insure against, and mitigate the risks of climate change is expected to rise to become a material element of end–use demand for parts of our portfolio.” Even though the emissions footprint of mining firms tends to be large, the decarbonisation of a wide range of sectors such as transport, depend on the ability of the mining industry to supply critical inputs in the product supply chain (lithium and electric vehicles, for instance). This indicates positive demand shocks for mining firms such as BHP whose portfolios are positioned to gain from these structural shifts.