Transparency and Disclosures
While environmental, social and governance transparency and disclosure is becoming part of a larger discussion within the financial community, Peabody has been committed to these tenets for decades.
As a global mining company, Peabody contributes substantial revenues to federal, state and local governments, and in 2017 paid more than $0.9 billion in taxes, royalties, levies and fees to governments in U.S. and Australia.
This amount includes the voluntary disclosure of payments consistent with the Extractive Industry Transparency Initiative (EITI), a global standard to promote the open and accountable management of extractive resources. Peabody is committed to transparent and accurate accounting of our payments made to governments, and we respect and comply with all applicable laws and regulations wherever we operate.
Although the U.S. Department of the Interior made the decision in November 2017 to withdraw the U.S. as an EITI implementing country, Peabody continues to voluntarily disclose payments and to promote standards for open and accountable management of natural resources.
A summary of payments to the U.S. federal government mirrors data collected by USEITI in past years, and in 2017 totaled $234.3 million.
While Australia has been a supporter of EITI and announced their intention to apply for membership, it is not yet an implementing country. Peabody is nonetheless voluntarily disclosing royalty and other mining-related payments made to the New South Wales and Queensland governments, which in 2017 totaled $240.1 million.
Peabody Payments Consistent with the EITI may be found here.
Common Ground Technology Solutions
Peabody played a leadership role in a broad and diverse coalition that included energy industry companies, environmental groups, labor organizations and others to support a bipartisan bill that aims to reduce the costs and barriers for carbon capture, use and storage (CCUS).
The 45Q CCUS tax credit was originally passed in 2008 and provided $10/metric ton for CO2
used for enhanced oil recovery and $20/metric ton for CO2
injected into saline storage. However, for many reasons, the initial credit did little to advance CCUS in the U.S.
A diverse group called the National Enhanced Oil Recovery Initiative was formed (now called the Carbon Capture Coalition
) to collaborate and reach across the political aisle to advocate for improvement and expansion of the 45Q tax credit.
Whether a lawmaker was interested primarily in jobs, energy security or reducing emissions, various coalition members articulated the benefits of 45Q. By the time the bill, called The FUTURE Act, reached the Senate floor, one quarter of U.S. Senators were co-sponsors. On Feb. 9, 2018, the tax credit expansion was passed into law.
Highlights of the tax credit expansion:
$35/metric ton CO2 for enhanced oil recovery
$50/metric ton CO2 for saline aquifer storage
12-year window for receiving tax credits
Construction must begin by Jan. 1, 2024
Minimum capture rate: 500,000 metric tons per year for power plants and 100,000 tons per year for industry
Transferrable, which means that nonprofits like cooperatives can use the tax credit
Contributing to the expansion of 45Q is an example of bipartisan, multi-stakeholder success, and Peabody looks forward to continuing efforts to advance this important technology as part of our common ground approach.