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Decarbonization targets
Leading the transition towards sustainable, low-carbon mining through our net zero strategy
Consume 100% renewable electricity in Brazil by 2025. Target achieved in 2023, two years ahead of schedule.
Soruce 100% renewable electricity globally by 2030.
Reduce absolute Scope 1 and 2 emissions by 33% by 2030, compared to 2017 levels.
Reduce net Scope 3 emissions by 15% by 2035, compared to 2018 levels.
Achieve net zero Scope 1 and 2 emissions by 2050.
Our target to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 33% by 2030 is aligned with the Paris Agreement goal of limiting global warming to below 2°C (WB2D). This commitment is based on 2017 emissions, which totaled 10.5 MtCO₂e, and was established using a science-based methodology.
Our decarbonization roadmap to eliminate Scope 2 emissions includes initiatives focused on the use of renewable energy, with the goal of supplying 100% of Vale’s electricity consumption in Brazil from renewable sources—a target that has already been achieved—and extending this commitment to all other locations by 2030. In 2024, we reached 84% renewable electricity consumption across our global operations, representing significant progress toward our decarbonization commitments.
We are committed to achieving net zero Scope 1 and 2 emissions by 2050. To reach this goal, we will rely on the absolute reduction of emissions through the decarbonization of our operations.
In 2020, Vale became the world's first mining company to establish a quantifiable target for Scope 3 greenhouse gas emissions, or emissions throughout our value chain. These emissions account for 98% of our overall inventory and reducing them will involve collaboration with our suppliers and customers. To achieve this goal, Vale is considering the use of high-integrity carbon credits, up to a limit of 20% of the proposed target, to address difficulties in reducing emissions in hard-to-abate sectors. These credits will adhere to strict principles of additionality, permanence and transparency, demonstrating Vale’s strategic commitment to its environmental goals.
Scope 1: These are direct emissions from sources owned or controlled by the organization. Vale's Scope 1 emissions include direct emissions of greenhouse gases (GHG) resulting from its operations, such as the combustion of fossil fuels in its mines and plants, and the emission of fugitive gases from mining equipment.
Scope 2: These are indirect emissions resulting from the consumption of electricity and/or thermal energy acquired by Vale. Developed solutions include the acquisition of renewable sources, renewable generation assets, and energy certificates.
Calculation methodology: SBTi - TWG-INF-002 | Version 4.2 April 2021.
Scientists recognize that some sectors within Vale's supply chain, such as shipping and steelmaking, are difficult to reduce emissions in (hard-to-abate sectors), allowing for the offsetting of emissions through carbon credits.
Therefore, in addition to utilizing accumulated expertise and know-how to find robust solutions for reducing emissions and enabling products that help our customers reduce their emissions, we will also access qualified and highly credible carbon markets, always aligning with international best practices to achieve our reduction goals.
Scope 3: Indirect emissions (not included in Scope 2) that occur in the value chain of the reporting organization, beyond the operational boundaries of the company. In Vale, they include suppliers and customers.
Calculation methodology: SBTi - TWG-INF-002 | Version 4.2 April 2021.
Decarbonization governance
Scope 1: Risk and opportunity management using the Marginal Abatement Cost approach
Potential GHG reduction by type of initiative
| Preferred abatement pathway | Potential abatement contribution for achieving our 2030 target |
|---|---|
Low carbon process inputs
|
56%
|
Biofuels, natural gas, and other low carbon fuels
|
18%
|
Renewable electricity
|
7%
|
Energy efficiency
|
6%
|
Our emissions reduction strategy
(kg CO2e/t MFe-eq)¹
(kg CO2e/t MFe-eq)¹
Scope 1: fuel substitution and energy efficiency
Fossil feedstock substitution
Our strategy for reducing Scope 1 emissions is primarily focused on replacing anthracite and natural gas in the iron ore pelletizing agglomeration process, reducing diesel consumption in mining equipment and locomotives, and displacing coal in our nickel flowsheets.
To lower anthracite emissions, we are developing a technology to replace it with biochar, a plant-derived product produced from certified biomass.
Natural gas and fuel oil are currently used as fuel in our blast furnaces. Vale is now exploring low-carbon alternatives, such as bio-oil or biomethane produced in biodigesters from landfill, agricultural and industrial waste.
In our railways, we are exploring a number of alternative fuels in replacement of diesel in our locomotives, including biodiesel, hydroprocessed vegetable oil (HVO), ethanol, and ammonia. Additionally, we are investigating the use of battery-electric locomotives to improve energy efficiency.
Diesel substitutes for locomotives
Drop-in solutions
Biodiesel
Challenge: regulatory (approval required for higher-than-mandatory blend ratios).
HVO
Challenge: supply and cost constraints in Brazil
Retrofit solution
Ethanol
Challenge: technological (retrofitting required)
Energy efficiency
Vale has invested in modern, automated, georeferenced fixed assets (trucks, drills, machinery, and equipment) that use radar and artificial intelligence. In addition to gains in safety and energy efficiency, they generate sustainability benefits due to reduced fuel consumption and increased component life.
Progress on our decarbonization journey
Among the initiatives invested by the Company as low-carbon energy solutions to replace traditional energy inputs with low-carbon alternatives, the following can be highlighted:
Replacement of diesel with biodiesel, considering a renewable fuel produced from vegetable oils or animal fats. In addition to biodiesel, natural gas is a transition fuel because, despite being a fossil fuel, its combustion generates less CO2 and other pollutants compared to coal and fossil fuel oils used in the production process.
In October 2024, Vale and Petrobras signed a strategic alliance agreement with the potential to commercialize three products: (i) bio bunker (fuel used in ships), (ii) Diesel R5 (diesel co-processed with vegetable oils, which is being tested on the Vitória-Minas Railway and at the Fábrica Nova mine in Minas Gerais), and (iii) natural gas, an essential input for the production of pellets and iron ore briquettes. This agreement will open up a range of possibilities for replacing fossil fuels, promoting the use of more sustainable energy sources.
During 2024, Vale entered partnerships with its truck suppliers (Komatsu and Caterpillar) to develop dual-fuel trucks, which consists of converting current diesel engines to a mixture of ethanol and diesel, making these trucks more sustainable. In addition, Vale has signed an agreement with Caterpillar to decarbonize mining operations, which includes testing large electric battery-powered trucks.
In March 2025 (subsequent event), Vale and Wabtec Corporation signed an agreement to purchase 50 new locomotives for the Vitória-Minas Railway (“EFVM”) and the Carajás Railway (“EFC”). These locomotives will be able to operate with a higher blend of biodiesel, which will reduce greenhouse gas emissions.
Vale and Petrobras test R5 diesel in locomotives - Photo: Marcos Antonio
Scope 2: 100% renewable energy globally
Our Scope 2 decarbonization roadmap includes renewable energy initiatives aimed at supplying 100% of Vale’s electricity consumption from renewable sources.
As part of our strategy, we have built a strong portfolio of renewables over the years to meet our operational needs. We have also partnered with other players to expand our renewable generation capacity under power purchase agreements (PPAs) backed by renewable energy certificates.
Strategy to achieve Scope 2 target
Competitive renewable energy sources to support our decarbonization roadmap
Our global electricity generation portfolio is a competitive advantage in our emissions reduction journey, with 84,3% of it coming from renewable sources. In 2024, Vale’s installed capacity worldwide reached 3.3 GW, primarily based on hydroelectric, wind, and solar generation assets—both directly and indirectly owned—located in Brazil and Canada.
In 2024, we completed the acquisition of the 45% stake held by Cemig GT in our 100% renewable energy generation subsidiary, Aliança Geração de Energia, for BRL 2.7 billion (USD 500.9 million), thereby becoming the sole shareholder of the company.
2023- 2030 Project
Electricity generation assets
Indonesia: Larona, Balambano, Karebbe
Canada: High Falls I, High Falls II, Big Eddy, Wabageshik, Nairn
Learn more about the Dams of International Hydropower Plants
Installed Capacity: 57.4 MW
River: Spanish
Installed Capacity: 10 MW
Location: Greater Sudbury – Ontario
Start of Operation: 1905
River: Spanish
Installed Capacity: 8 MW
Location: Greater Sudbury – Ontario
Start of Operation: 1917
River: Spanish
Installed Capacity: 30 MW
Location: Greater Sudbury – Ontario
Start of Operation: 1929
River: Vermilion
Installed Capacity: 4.8 MW
Location: Greater Sudbury – Ontario
Start of Operation: 1911
Installed Capacity: 4.7 MW
Location: Nairn Township – Ontario
Start of Operation: 1924
Installed Capacity: 462 MW
Concessionaire: Consórcio Estreito Energia (CESTE)
Engie – 40.07%
Vale – 30.0%
Alcoa - 25.49%
Intercement – 4.44%
Location: Estreito - MA
River: Tocantins
Start of Operation: April/2011
Concession End: Dec/2037
Installed Capacity: 1087 MW
# of Generating Units: 8
Location: Piratuba - SC
River: Pelotas
Start of Operation: Feb/2002
Concession End: Dec/2028
Installed Capacity: 1,140 MW
# of Generating Units: 3
Concessionaire: Consórcio Machadinho Companhia Brasileira de Alumínio - 29.2296%
Alcoa Aluminio - 27.3391%
Engie Brasil Energia - 20.4801%
Vale - 8.8068%
Votorantim Cimentos Machadinho Energia - 5.9658%
Machadinho Participações - 5.2762%
DME Distribuição - DMED - 2.9020%
Aliança Geração de Energia: 50.00%
Vale: 50.00%
Vale's Stake: 77.5%
Location: Rio Doce - MG
River: Doce
Start of Operation: Sep/2004
Concession End: May/2035
Installed Capacity: 140 MW
# of Generating Units: 3
The project includes a substation and a 15 km, 230,000 volt transmission line connecting the plant to the Jaíba substation and ultimately the National Grid.
Sol do Cerrado will generate enough electricity to meet 16% of our electricity requirement in 2025, reducing our emissions by 134,000 tCO2e per year. This is equivalent to the emissions of approximately 100,000 compact cars.
Shares in companies
Installed Capacity: 462 MW
Basin: Rio Larona
Installed Capacity: 195 MW
Location: Balambano, Wasuponda
Start of Operation: 1979
# of Generating Units: 3
Basin: Rio Larona
Installed Capacity: 137 MW
Location: Balambano, Wasuponda
Start of Operation: 1999
# of Generating Units: 2
Basin: Rio Larona
Installed Capacity: 130 MW
Location: Laskap, Malili
Start of Operation: 2011
# of Generating Units: 2
Sol do Cerrado solar project
In November 2022, our Sol do Cerrado solar project came online in the municipality of Jaíba, northern Minas Gerais. This USD 590 million project is one of the largest solar plants in Latin America with an installed capacity of 766 Megawatts peak.
The project includes a substation and a 15 km, 230,000 volt transmission line connecting the plant to the Jaíba substation and ultimately the National Grid.
Sol do Cerrado will generate enough electricity to meet 16% of our electricity requirement in 2025, reducing our emissions by 134,000 tCO2e per year. This is equivalent to the emissions of approximately 100,000 compact cars.
In line with Vale’s commitment to promote a fair energy transition, we established a partnership with the municipal government of Jaíba and the local community to design a Local Development Agenda (ADL).
Among its key deliverables are the establishment of a diverse and representative permanent participation forum; the development of an integrated vision and shared governance; short, medium and long-term strategic planning; and investments in education and broad participation.
Canada and Indonesia
Vale operates five small hydropower plants in Canada that generate approximately 20% of the electricity requirement of the company's Sudbury operations.
In Indonesia, we operate three hydroelectric power plants to supply electricity to our nickel production operations (Larona, Balambano, and Karebbe).
Scope 3: an enhanced portfolio and new technologies
Achieving our target 15% reduction in Scope 3 emissions by 2035 would avoid more than 80 million metric tons of CO2 equivalent in emissions. This poses the challenge of tackling emissions in hard-to-abate industries such as shipping and steelmaking, where the unavailability or high costs of retrofit and conversion technology mean that the shadow price of carbon cannot be estimated in regulated carbon markets.
Our efforts to meet these targets are anchored on three core pillars:
- A high-quality product portfolio and innovative technology,
- Collaboration and engagement with the value chain, and
- Limited use of high-integrity carbon credits
We estimate that Vale’s initiatives will support approximately 15% to 25% of the reduction required to meet our Scope 3 target. The remaining reductions, around 75% to 85% of our target, will largely be achieved through collaboration with suppliers and customers, assisting them in innovation and decarbonization.
Around 17 MtCO2e of high-integrity carbon credits can be used toward this target up to a limit of 20% and provided those credits meet the requirements of additionality, permanence, transparency, and contribution to sustainable development.
Breakdown of 2024 Scope 3 emissions
Learn more
To become a partner of choice in our customers’ decarbonization journey, we have advanced a unique, high-quality portfolio of low-carbon solutions.
For additional energy and emissions disclosures, see our ESG Databook.
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