A new analysis from Ember has revealed that underreported methane emissions from Australian coal mines could significantly increase the short-term climate impact of steelmaking. The findings suggest that if these hidden emissions are fully accounted for, the supply chain footprint of global steel giants including ArcelorMittal, Nippon Steel, and POSCO could rise by 6–15 percent.
Australia, the world’s largest exporter of coking coal, supplies more than half of the global market. In 2024, its coking coal mines emitted an estimated 867 kilotonnes of methane, surpassing emissions from the country’s entire oil and gas sector combined. With methane intensities averaging 3–5 tonnes per kilotonne of coal, these overlooked emissions could add 10–17 percent to the short-term climate impact of steel production.
Super-emitters pose hidden climate risks
Ember’s case study of Hail Creek, one of Australia’s gassiest coal mines, underscores the scale of underreporting. Between 2023 and 2024, around 4.3 million tonnes of coal from Hail Creek were shipped to steel plants owned by ArcelorMittal, Nippon Steel, and POSCO. Reported figures attributed 12.9 kt of methane to this coal, but Ember estimates actual emissions could be more than three times higher — equivalent to methane released by 283,000 beef cattle annually.
The analysis also shows that metallurgical coal mines dominate Australia’s list of super-emitters. Eight of the ten gassiest mines produce metallurgical coal, contributing over 20 percent of reported methane emissions while accounting for just 3 percent of total coal output. With underreporting, the real share is likely far higher.
Methane cuts are the fastest climate solution before 2030
Experts stress that cutting methane from coal mines represents one of the fastest and most cost-effective ways to reduce steel’s carbon footprint before 2030. More than half of these emissions could be avoided using existing abatement technologies such as methane capture and flaring, the report said.
“Steelmakers can no longer ignore the climate cost of the coal they use,” said Nishant Bhardwaj, Director – Coal Mine Methane (Climate Change) at Ember. “More than half of coal mine methane emissions can be avoided with existing technology — but only if buyers demand proper monitoring and abatement from their suppliers.”
Steel’s climate impact starts at the mine. Addressing methane emissions from metallurgical coal is one of the fastest and cost-effective ways to reduce the sector’s footprint. But progress depends on accurate, transparent data. UNEP’s Steel Methane
Programme provides a framework for mine-level measurement data and rapid methane reductions, helping to decarbonize steel production, according to UNEP’s International Methane Emissions Observatory (IMEO).
The path to net-zero steel
While immediate methane action is essential, Ember stresses that true decarbonisation of the steel sector ultimately depends on a transition to renewable-powered steelmaking. However, without urgent transparency and abatement measures, hidden methane emissions risk undermining global steelmakers’ net-zero strategies.
Addressing coal mine methane is not a substitute for transformation but remains a critical first step in reducing the steel industry’s climate impact and strengthening supply chain accountability.
Baburajan Kizhakedath