Demand for minerals and the Paris agreement

Regulation & Policy    May 18, 2021 6:02 PM

Compliance with the goals of the Paris Agreements would generate benefits for the demand for minerals in the coming decades.

The International Energy Agency (IEA) estimates that the demand from mining companies for the construction of clean energy technologies will quadruple in 2040, if the Paris agreements are fulfilled, El Espectador reported.

The entity said that if the energy transition were faster, the mineral needs for these technologies would multiply by six.

The IEA warned that, if action is not taken to respond to this explosion in demand for a series of minerals essential for electric vehicles and their batteries, for electricity grids or for wind turbines, the goals of containing climate change could be compromised.

“The challenges are not insurmountable, but governments must give clear signals on how they plan to turn their climate commitments into action. Acting now and together, they can significantly reduce the risks of price volatility and supply disruptions,” AIE’s Fatih Birol highlighted.

The entity said that the highest priority is to provide clear signals about the pace governments intend to give to the energy transition and the weight of key technologies and so offer guarantees on an adequate level of investment.

The biggest increase would be for lithium, since the IEA estimates that demand could multiply by 32; for graphite, by 25; for cobalt, by 21; for nickel, by 19, and for rare earths, by 7.

Bottom-Line: The Colombian government has shown its commitment to the energy transition process, promoting the use of renewable energies in the country.

Authorities should begin to work on the exploration and production of these minerals in Colombia, as it represents an opportunity for the country in the medium and long term.

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