Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 122

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 122
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 in our climate change scenarios and page 73 for our Scope 1 emissions covered by emissions-limiting regulations. Our decarbonisation project portfolio is constantly evolving as new projects are added following further technical and commercial assessment. We are targeting a value accretive pathway to 2030 across the portfolio. The large scale investment in zero emissions technologies that is needed to progress towards our net zero target will require global carbon pricing or green premiums. 2030 decarbonisation spend Our target to reduce emissions by 50% by 2030 relative to 2018 levels remains unchanged. We see decarbonisation as a key business imperative to manage our exposure to volatile fossil fuel prices and to mitigate the impact of inflationary carbon penalty costs. Meeting our 2030 targets will diversify our energy portfolio away from volatile, globally traded fossil fuels and towards structurally secure, long-term, cost efficient, low-carbon alternatives. As per our 2023 climate change-related reporting, we believe achieving this will require less capital investment and an increasing number of commercial partnerships than expected when we set our targets in 2021. To further accelerate our emissions abatement, we will take advantage of non-capital-intensive solutions that can be ready in the market this decade and avoid lengthy project development schedules. We anticipate that approximately 90% of our abatement by 2030 will be delivered by non- capital intensive solutions, including several renewable PPA contracts executed over the past 12 months. For projects delivering on our 2030 abatement target, we anticipate incremental operating expenditure at a portfolio level to be breakeven, before application of carbon costs and savings. A significant amount of abatement will be delivered through entering into PPAs that can be cost-neutral or offer a cost saving relative to the fossil fuel alternative. This is offset by other contracts such as biofuels where we anticipate a cost premium will prevail this decade. We also continue to make ongoing investments in studies, pilots and demonstration plants targeting long-dated and uncertain carbon reduction outcomes. Operational expenditure varies year on year, but across the decade we anticipate on average annual spend to be in the order of $0.2-$0.3 billion. Pre-2030 abatement projects are predominantly expected to be delivered through non-capital-intensive solutions and proven technologies, while post-2030 abatement projects are generally characterised as high-cost, capital-intensive projects that require industry breakthroughs.

| Annual Report on Form 20-F 2024 | 64 | riotinto.com |

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