Former top BHP economist urges tougher government policies to push miners to decarbonise
Guardian AU
β’Thu, 09 Jul 2026 15:00:56 GMT
π° What Happened
Former BHP chief economist Dr. Huw McKay has called for stronger government climate policies, including a carbon price, to incentivise mining companies to accelerate decarbonisation. This follows leaked internal documents showing BHP had delayed renewables projects in the Pilbara, scrapped a significant emissions-cutting project, and considered pushing electrification of diesel trucks and trains into the next two decades.
π The Backstory
BHP, one of the world's largest mining companies, has faced increasing scrutiny over its climate commitments. Leaked documents obtained by Guardian Australia and the ABC earlier in 2026 revealed the company had quietly slowed its decarbonisation efforts despite public pledges. Australia's safeguard mechanism, the key policy for industrial emissions, has been criticised for being too weak to drive real change.
π― Why It Matters
Australia is one of the world's largest fossil fuel exporters, and mining companies like BHP are among its biggest emitters. Without stronger government intervention, experts warn that Australia's climate targets under the Paris Agreement will remain out of reach.
Former BHP chief economist Dr. Huw McKay has called for stronger government climate policies, including a carbon price, to incentivise mining companies to accelerate decarbonisation. This follows leaked internal documents showing BHP had delayed renewables projects in the Pilbara, scrapped a significant emissions-cutting project, and considered pushing electrification of diesel trucks and trains into the next two decades.
BHP, one of the world's largest mining companies, has faced increasing scrutiny over its climate commitments. Leaked documents obtained by Guardian Australia and the ABC earlier in 2026 revealed the company had quietly slowed its decarbonisation efforts despite public pledges. Australia's safeguard mechanism, the key policy for industrial emissions, has been criticised for being too weak to drive real change.
Australia is one of the world's largest fossil fuel exporters, and mining companies like BHP are among its biggest emitters. Without stronger government intervention, experts warn that Australia's climate targets under the Paris Agreement will remain out of reach.