Where the emissions in critical metals actually sit

Direct emissions from mining critical metals like copper, lithium, and nickel are surprisingly small. However, the full metals system (extraction through processing) represents around 11% of global CO₂, and the majority of those emissions happen downstream, when ore becomes usable metal. This is precisely where targeted decarbonization can deliver the greatest value for industries relying on these materials.

Companies should move beyond purchasing offset credits and instead invest in insetting emissions reductions directly within their metal supply chains. Offset credits are generally not eligible for Scope 3 accounting as they sit outside a company’s value chain.

Insetting, by contrast, involves funding verified decarbonization projects at the mines and processing facilities that actually supply your business. These reductions are traceable, can be properly allocated to buyers, and retired only once, delivering credible Scope 3 progress.

With the EU Battery Passport and CBAM requirements coming into full effect in 2026, insetting is becoming essential for regulatory compliance, robust Scope 3 reporting, and building resilient supply chains.

Read more in our 2026 Sustainable Mining Industry Report linkedin.com

To explore insetting for your organization, reach out to our team at carbon3.net