Research — Oct 15, 2026
Emissions-driven power shift reshaping Australian gold
By John Kevin Villar, Louanne De Sales, and Jellian Nacalaban
As Australia's gold sector balances world-class production with its net-zero ambitions, differences in mine location, power sources and operational efficiency are shaping the pace of decarbonization.
➤ Australia's gold sector combines world-scale production with a comparatively moderate emissions profile, ranking at the 50th percentile of the 2026 global Scope 1 and 2 emissions intensity curve.
➤ Decarbonization remains uneven, as grid-connected mines benefit from cleaner electricity, while remote operations in Western Australia and the Northern Territory remain reliant on diesel and gas.
➤ The link between lower emissions and all-in sustaining costs (AISC) suggests that decarbonization could improve operational efficiency and strengthen the industry's long-term competitiveness.
Australia ranks among the world's top three gold producers, as per the 2025 data, with mined output exceeding 9.7 million ounces. The country's approximately 410 million oz reserve base supports a strong long-term production outlook and reinforces its importance to global gold supply.
As party to the Paris Agreement under the United Nations Framework Convention on Climate Change and with a national net-zero emissions target by 2050 embedded in policy, Australia's mining sector warrants closer examination in terms of how its emissions profile aligns with the country's broader decarbonization pathway. Despite being one of the world's largest gold-producing countries, its gold sector sits at the 50th percentile of our 2026 global Scope 1 and 2 emissions intensity curve. This suggests that while further emission reduction efforts will be needed to support longer-term net-zero objectives, the industry is already making strides to help Australia reach its goal.
Modeled assets place Australia near the median of the combined Scope 1 and Scope 2 emissions intensity profile. The country records an estimated combined Scope 1 and 2 emissions intensity of 768.04 kilograms of CO₂ equivalent per paid ounce of gold (kgCO₂e/oz Au), which is at least 9.5% below the corresponding levels for Russia and the US.
Australia's gold performance is notable. Ora Banda Mining Ltd.'s Davyhurst operation has focused on redesigning and automating key components to improve equipment utilization and operational efficiency. It has demonstrated how emissions can be reduced through optimizing existing infrastructure and processes, as well as new technologies.
Canada's emissions intensity of 328.62 kgCO₂e/oz Au provides a useful benchmark, supported by low-carbon hydroelectricity available to many grid-connected mines. Australia's remote mining geography limits comparable grid access, but greater use of renewables, battery storage, hybrid systems and renewable power procurement could narrow the gap.
Leading modeled gold mining assets in Australia are increasingly incorporating renewable energy into their power mixes to reduce emissions intensity and fossil fuel reliance. While grid electricity remains important for connected operations, several mines are adopting solar, wind and hybrid systems, particularly where access to the national grid is limited.
AngloGold Ashanti PLC's Tropicana renewable energy facility, commissioned in 2023, is one of Australia's largest off-grid hybrid power systems and has contributed to an average emissions reduction of 8% year over year. Gold Fields Ltd.-owned St Ives, a 42-megawatt wind farm and a 35-MW solar facility, has supplied approximately 73% of its own electricity needs since 2024, with emissions estimated to fall 57% in 2025 and a further 71% in 2026, reducing emissions intensity to 125 kgCO₂e/oz Au. The company's Granny Smith also demonstrates the role of renewables, with 21% of its energy generated by a 19-MW solar facility since 2019.
Further projects are broadening the shift. KCGM, owned by Northern Star Resources Ltd., plans 256 MW of wind, 138 MW of solar and 300 MWh of battery storage, targeted for commissioning in 2027. Grid-connected Cowal purchases electricity under an agreement that includes renewable power, supporting its owner Evolution Mining Ltd.'s 2030 target to reduce energy-related emissions by 30%.
This transition is evident across Australia's regions and industries, as the country gradually reduces its long-standing dependence on coal. Its renewable energy use is forecast to increase 54% between 2025 and 2035, although the pace and composition of this shift will vary by region. Tasmania already benefits from a predominantly hydroelectric power system, supported by its geography and established generation infrastructure. By contrast, New South Wales, Queensland and Victoria — which are historically more reliant on coal-fired electricity — are forecast to undergo a substantial shift toward renewables by 2035. Although this represents a rapid transformation of the energy mix, it is consistent with Australia's commitment to achieving net-zero emissions by 2050.
Western Australia and the Northern Territory are also increasing the share of renewables in their energy mixes, but gas is likely to remain important for system reliability and firming capacity. The South West Interconnected System (SWIS) in Western Australia and the Darwin-Katherine Interconnected System in the Northern Territory neither extend across their entire jurisdictions nor serve all remote electricity demand. Consequently, both regions continue to account for a significant share of Australia's off-grid power requirements, particularly among remote and energy-intensive operations that rely on stand-alone gas, diesel or hybrid power systems.
The geographic distribution of Australia's gold industry highlights a structural challenge for decarbonization. Many of the largest gold-producing operations and projects are concentrated in the remote regions of Western Australia and the Northern Territory — such as Karlawinda, Mt Todd, Tanami and Telfer, owned by Capricorn Metals Ltd., Vista Gold Corp., Newmont Corp. and Greatland Resources Ltd., respectively — which remain isolated from transmission networks and continue to rely on on-site diesel and gas-fired power generation.
In contrast, a large portion of the gold mines in eastern Australia are connected to the national grid, positioning them to benefit from the progressive decarbonization of Australia's electricity sector. This geographic divide creates a two-speed decarbonization pathway for the sector: Grid-connected mines can benefit directly from the ongoing decarbonization of Australia's electricity mix, while remote operations must pursue more capital-intensive solutions.
Despite regional disparities in access to power, the sector's emissions outlook is improving. Australia's gold emissions are forecast to decline about 9% to 680 kgCO₂e/oz Au by 2030 from 745 kgCO₂e/oz Au in 2021. The decline suggests that technological and energy-transition initiatives are helping offset the impact of emissions associated with remote mining. While grid decarbonization and renewable deployment at off-grid mines are expected to support emissions reductions, part of the improvement toward 2030 should be considered alongside declining gold output, as mature operations wind down. Even so, the growing adoption of renewable and hybrid power systems at remote mines is reducing dependence on fossil-fuel generation, addressing a key source of Scope 1 emissions across Australia's gold sector.
Industry examples include Gold Fields' Agnew/Lawlers renewable microgrid — combining wind, solar, and battery storage alongside the existing gas-powered infrastructure — as well as the continued expansion of hybrid renewable generation, notably at Tropicana and other Western Australian operations. At the same time, grid-connected assets such as Newmont's Boddington are positioned for increased renewable electricity through long-term renewable energy agreements. Together, these developments indicate that Australia's gold sector is gradually reducing emissions intensity by adapting its energy infrastructure to operate more efficiently and with a lower carbon footprint.
Through analyzing the relationship between total Scope 1 and 2 emissions from Australia's primary gold operations alongside each asset's AISC, a clear — and highly encouraging — trend has emerged: Lower-cost operations are highly likely to be lower emitters.
The relationship between AISC and greenhouse gas emissions brings the financial dimension of decarbonization into a sharper focus. As Australia's gold sector moves alongside the country's broader net-zero ambitions, each metric ton of emissions increasingly represents not only an environmental liability but also a potential cost, whether through energy consumption or operational inefficiency. Recognizing this link allows operators to identify where efficiency improvements can deliver emissions reductions and cost benefits, helping reduce the operational friction that could otherwise slow progress toward long-term decarbonization goals.
Overall, when considering GHG emissions, Australia's gold sector appears relatively well positioned compared with other major producing countries. For example, it is supported by a sizeable resource base, several lower-emitting operations and a growing shift toward cleaner power solutions. However, the path to net-zero will depend on how effectively producers address regional disparities, reduce reliance on diesel and gas, particularly in remote operations and embed emissions management into cost and operational decision-making. In this context, decarbonization is not only an environmental imperative but also an opportunity to strengthen the long-term competitiveness of Australia's gold industry.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.