Diversified miner BHP has told shareholders that the company would likely need to make use of high-integrity carbon credits to offset greenhouse-gas (GHG) emissions which could not be avoided as part of its net-zero goal by 2050.

BHP head of carbon management Graham Winkelman said in a presentation that the miner was on track to deliver its 2030 target of at least a 30% reduction, and on its long-term goal of net-zero operational GHG emissions by 2050.

“In 2022, our operational GHG emissions were 11-million tonnes of carbon dioxide-equivalent, adjusted for divestments and methodology changes. It’s a good start from our 2020 baseline and has been achieved primarily through introducing renewable electricity at many of our operated assets, notably in Chile.

“But the path to 2030 is more challenging,” Winkelman said.

He noted that BHP’s emissions profile is now weighted towards diesel, and while technology solutions for diesel displacement were emerging, many were not yet available at scale.

“In addition, our business activity is expected to grow to 2030, which under the current circumstances would lead to some growth in emissions. Countering this growth, we plan additional deployment of renewable energy before 2030, and further effort to deliver abatement across other emissions sources, including diesel, fugitive methane and natural gas.”

BHP’s near-term growth plans are expected to see an uptick in the miner’s emissions, with Winkleman telling shareholders that in order to move faster on its decarbonisation pathway, BHP will be reliant on the availability of technology still under development.

“Despite efforts to date and our plans going forward, the challenge of eliminating natural gas and removing fugitive methane emissions, in addition to the viable advances needed in diesel displacement technology, continues to shape BHP’s future emissions pathway.”