Metallurgical Coal Exit List 2025
Metallurgical coal or ‘met coal’ is used for steelmaking and accounts for 13% of global coal production. The technology for green steel is available, and no new met coal mines can open in a 1.5°C-aligned industry scenario. However, met coal production is still expanding. MCEL reveals 160 companies that are developing new met coal mines or are expanding existing ones.
The Metallurgical Coal Exit List (MCEL) is a company-level database that provides financial institutions and civil society with a comprehensive tool on the 160 met coal developers. These met coal developers are building new met coal mines or expanding existing ones. This could result in 252 new and unnecessary met coal mines.
Over 183 financial institutions are already restricting financing for thermal coal. Despite its disastrous effect on our climate most banks, investors and insurers still don't have metallurigcal coal on their radar. This needs to change: Coal is coal!
As the Global Coal Exit List (GCEL) is limited to thermal coal, it is now supplemented by the Metallurgical Coal Exit List (MCEL).
Coal used by the steel industry is referred to as metallurgical (met) coal and includes coking coal, which is needed to produce coke, a key ingredient in blast furnace steel production. It accounts for 13% of global coal production. On the other hand, thermal coal is used for electricity generation and heating.
The Metallurgical Coal Exit List (MCEL) focuses on the former, highlighting the need for a complete coal phase-out that includes both thermal and metallurgical coal.
The Metallurgical Coal Exit List (MCEL) highlights the urgent need to address one of the largest contributors to global CO2 emissions: the steel industry. Responsible for 11% of global emissions, the iron and steel sector relies heavily on metallurgical coal, making it a critical target for decarbonization. Transitioning away from coal in steel production is essential for tackling the climate crisis and achieving meaningful progress in reducing emissions from hard-to-abate sectors.
The Metallurgical Coal Exit List (MCEL) identifies 160 mining companies engaged in 252 metallurgical coal expansion projects across 18 countries. Every company on the MCEL is actively developing new mines or expanding existing ones. By shedding light on the metallurgical coal market, the MCEL helps financial institutions make divestment decisions and encourages change within the steel industry.
Steel has long been considered a hard-to-decarbonize sector, but advancements in technology now make coal-free steel production methods possible. According to the think tank Agora Industry, a global phase-out of coal in the steel industry by the early 2040s is technically achievable. With existing production capacity sufficient to meet the demand for metallurgical coal through 2050, there is no need for new or expanded met coal mines.
The use of green hydrogen as a reducing agent in the production of iron offers a viable alternative to coal, underscoring the urgent need to expand green hydrogen capacity. Additionally, steel is highly recyclable, and increasing recycling rates could significantly reduce emissions and resource use. Today, only 21% of steel is made out of steel scrap. A look at the US shows that a higher recycling rate is possible: Roughly 70% of US steel comes from secondary steel production.
