Why metal mining investors should support a global carbon price

The global metals and mining business is one of the dirtiest industries around, contributing around 8% of global carbon emissions. A high carbon price is surely the last thing that mining company executives and their investors would wish for.

Yet many of the commodities brought to the surface and refined are essential if we are to accelerate the ‘green’ energy transition and decarbonise our economies.

In an earlier article I highlighted the 7 industries that Credit Suisse thought most likely to benefit from high carbon prices. What was missing from that list were the industries that provide the raw materials, without which industries such as renewable energy simply could not happen (see Which industries benefit from a high carbon price?).

Rather than fear the impact of the higher costs brought by carbon pricing, miners of metals such as tin, copper, and nickel should support high carbon prices since it will increase demand for those metals, while also resulting in higher metal prices.