M-ICR0004: Keeping Thermal Coal in the Ground
Public consultation on the first version from 6. September 2023 - 4. October 2023
Sectoral scope
Mining/mineral production
Status
Under validation
Current Stage:
Public consultation completed
ID:
Summary:
“Keeping Thermal Coal in the Ground” methodology focuses on the reduction of GHG emissions through the preservation of thermal coal deposits in the ground. “Recognizing the importance of the conservation and enhancement, as appropriate, of sinks and reservoirs of the greenhouse gases ...” is the Paris Agreement’s guiding principal behind this methodology. By keeping coal in the ground through preservation rather than as using coal as a source of fuel to generate electricity, CO2, methane, and other GHG emissions are avoided.
Coal is responsible for an estimated 40% of global CO2 emissions from energy generation. This makes the burning of thermal coal one of the most significant contributors to carbon dioxide emissions and other environmental pollutants. Additional GHGs released in coal fired power generation include but not limited to nitric oxide (NO), nitrogen dioxide (NO2), and Sulphur dioxide (SO2). Eligible project activities mitigate these GHG emissions issues by preventing thermal coal from being mined, shipped, and burned, thereby preserving the coal in the ground and avoiding the release of harmful CO2 other GHG's that accelerate climate change.
The “Keeping Thermal Coal in the Ground” methodology/business practice disincentivizes coal-fired power generation across the earth by reducing the present and future supply of high-value, high-BTU U.S. thermal coal. The incentive to keep the coal in the ground for 100-years is paid to the coal mineral owner - not the mining company or power generation company. In the United States, nearly 66% of the coal in the ground are owned by persons or entities that are not the U.S. Government.
Reductions in available present and future thermal coal supplies create negative market forces that raises coal prices via supply and demand economics and will lead or force companies to change their business models away from coal fired power generation in a more expedient timeframe. Thus creating “a positive climate contribution.”
The eligible project activities involve incentivizing the mineral owner to not lease the non-stranded thermal coal minerals to a mining company which would lead to the coal being mined, shipped, and burned for power usage either in the U.S. or overseas. The keeping coal in the ground emissions reduction methodology results in a reduction of CO2 emissions equivalent to the amount that would have been generated if the thermal coal were burned. The methodology and projects employ scientifically proven methods for the coal volumetrics and CO2 volume calculations. The methodology abides by a national public company volumetric standard, as it follows U.S. Security Exchange Commission prescriptive guidelines for coal resource delineation are well documented via 17 CFR Parts 220, 230, 239 and 249, commonly referred to as the S-K1300 standards. The CO2 conversions follow proven formulas sch as the U.S. Environmental Protection Agency conversion coal to CO2 formula. This methodology offers a supply-side approach to the reduction of thermal coal usage and reduces greenhouse gas emissions by creating incentives that reduce the supply of thermal coal, thereby increasing prices around the globe and disincentivizing the burning of coal for electricity.
Documentation and public consultation
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