As the urgency of the climate crisis escalates, the demand for minerals essential to renewable energy technologies is surging, driven by the proliferation of solar panels, wind turbines, and electric vehicles (EVs).
Projections from the United Nations Conference on Trade and Development (UNCTAD) indicate a staggering increase in demand for lithium, nickel, cobalt, and copper by 2050, necessitating substantial investments in mining projects worldwide.
However, this surge in demand poses both opportunities and challenges for developing countries rich in these critical minerals.
Many of these nations grapple with commodity dependence, hindering their economic development and perpetuating inequalities.
To address these issues, there is a pressing need to localize value addition processes, moving beyond mere extraction to enhance participation in the global value chains of renewable energy components.
For instance, the experience of the Democratic Republic of Congo illustrates the potential benefits of local processing.
By refining cobalt domestically, the country significantly increased its export revenues, demonstrating the value of adding value to raw minerals.
However, to fully harness their mineral wealth, developing countries require global support in terms of sustainable mining practices, transparent contracts, and access to investments and technologies.
UNCTAD advocates for the establishment of fair and sustainable production principles, emphasizing the pivotal role of the United Nations in facilitating this transition.
The organization provides analysis to inform global discussions on critical energy transition minerals, aiming to promote structural diversification and mitigate the risks of commodity dependence.
As the world navigates the complexities of the energy transition, there is a unique opportunity to reshape trade regimes, foster economic diversification, and empower local communities.
By leveraging these new commodities responsibly, developing countries can chart a course towards sustainable development and greater resilience in the face of global challenges.
SOURCE:UN.ORG
