Focus on reducing emissions during operation
Of the total planned investments, up to 4 billion Brazilian reais (785.50 million US dollars) will be used to decarbonize Vale's own operations. According to the company, 24 percent of this amount is expected to be invested in the medium term, while the remaining 76 percent will be allocated in the long term.
Another 8 billion Brazilian reais ($1.57 billion) will be associated with the development of industrial complexes focused on low-carbon technologies. These projects include technologies that support the transition to steel production, as well as the development of iron ore briquettes. The remaining 1 billion Brazilian reais (196.37 million US dollars) will be used for research and development.
Vale highlights progress and future risks
Vale said it has invested 9 billion Brazilian reais in decarbonization initiatives in the period from 2020 to 2025.
Graziel Parenti, Vale's executive vice president of sustainability, said the company sees both environmental and financial benefits from its decarbonization efforts. She noted that major projects and investment decisions are evaluated using an environmental, social, and management framework that evaluates potential risks and opportunities.
The company also warned that due to carbon pricing mechanisms, it could face carbon-related costs of up to 22 billion Brazilian reais (US$4.32 billion) per present value, with the most significant impacts expected starting in 2030.
