COP29: Turning the Renewables Revolution Toward Justice
Copper, lithium, nickel, and 17 rare earth elements – the ongoing global climate talks at COP29 in Baku, Azerbaijan Wednesday focused on the question of how to manage the demand for these minerals so essential to producing the electric vehicles that can cut global emissions without triggering a “stampede of greed.”
Copper, lithium, nickel, rare earth elements – the ongoing global climate talks at COP29 in Baku, Azerbaijan Wednesday focused on the question of how to manage the demand for these minerals essential to producing the electric vehicles that can cut global emissions without triggering a “stampede of greed” that exploits the poverty of local communities.
Demand for these minerals is expected to surge as governments triple global renewable capacity by 2030 as promised and phase out fossil fuels.
“For developing countries rich in those resources, this is a huge opportunity to generate prosperity, eliminate poverty, and to drive sustainable development. But too often this is not the case,” United Nations Secretary-General António Guterres told world leaders, journalists and thousands of delegates at the UN’s annual climate summit in Baku on November 13, 2024.
“TOO OFTEN WE SEE THE MISTAKES OF THE PAST REPEATED IN A STAMPEDE OF GREED THAT CRUSHES THE POOR. WE SEE A RUSH FOR RESOURCES, WITH COMMUNITIES EXPLOITED, RIGHTS TRAMPLED, AND ENVIRONMENTS TRASHED. WE SEE DEVELOPING COUNTRIES GROUND DOWN TO THE BOTTOM OF VALUE CHAINS, AS OTHERS GROW WEALTHY ON THEIR RESOURCES.” – United Nations Secretary-General Antonio Guterres
“We are here to respond to a key challenge: turning the energy transition towards justice,” said Guterres, asking participants at a roundtable discussion to comment on the work of his Panel on Critical Energy Transition Minerals.
This panel was established last year at COP28 in the United Arab Emirates in response to a proposal by resource-rich developing countries experiencing challenges along the minerals value chain. It was introduced to the world on April 26, 2024 at UN Headquarters in New York.
The panel convenes governments, international organizations, industry and civil society to develop voluntary principles to guide extractive industries in the cause of justice and sustainability.
“The global climate crisis has arrived,” the panel warned in its first report, issued in September 2024. “This year has already included the three hottest days in recorded history, with deadly extreme heat affecting much of Asia and the Middle East. Raging wildfires continue to devastate parts of North America and Europe. Record-setting floods have inundated communities from Brazil to Bangladesh. Severe droughts beset Southern Africa. Arctic permafrost is in thaw. Sea levels are rising, wildfires are burning, extreme heat is crippling. The window to limit global temperature rise to 1.5°C above pre-industrial levels and meet the goals of the Paris Agreement is closing.”
Last year at COP28, governments agreed to triple renewable energy capacity and double energy efficiency by 2030. There is no pathway to achieving these aims without a major increase in the supply of critical energy transition minerals.
According to the International Energy Agency, mineral demand for clean energy applications will almost triple by 2030 on the path to reaching global net-zero emissions of the most prevalent greenhouse gas, carbon dioxide, by 2050.
Guterres said that the renewables revolution now is moving forward. In 2023 for the first time, the amount invested in grids and renewables worldwide overtook the amount spent on fossil fuels.
“A world powered by renewables is a world hungry for critical minerals. For developing countries, critical minerals are a critical opportunity – to create jobs, diversify economies, and dramatically boost revenues. But only if they are managed properly. The race to net zero cannot trample over the poor,” Guterres declared introducing the panel’s report in September. “The renewables revolution is happening, but we must guide it towards justice.”
Seven Principles for Action - All Voluntary
The Panel on Critical Energy Transition Minerals is co-chaired by Ambassador Nozipho Joyce Mxakato-Diseko of South Africa and Ditte Juul Jørgensen of Denmark, the European Commission’s director-general for energy. It brings together governments, intergovernmental and international organizations, industry and civil society, to develop a set of common and voluntary principles to build trust, guide the transition and accelerate the race to renewables.
“THIS IS A TIME WHEN COOPERATION IS PARAMOUNT FOR NATIONS TO EFFECTIVELY ADDRESS MULTIPLE CRISES. WITH CLIMATE CHANGE AT THE CENTER OF THESE CRISES, THERE IS URGENCY TO WORK TOGETHER WITH A CLEAR UNDERSTANDING THAT WE EITHER SINK TOGETHER OR RISE TOGETHER, WITH HUMAN RIGHTS, JUSTICE EQUITY AND BENEFIT SHARING GUIDING US TOWARDS SHARED GLOBAL PROSPERITY.”
– Nozipho Joyce Mxakato-Diseko, Ambassador at Large for Peace and Security, Human Rights and Development, Ministry of International Relations and Cooperation of South Africa, Co-chair UN Secretary General’s Panel on Critical Energy Transition Minerals
Building on existing norms, commitments and legal obligations outlined in United Nations texts, the Secretary General’s Panel on Critical Energy Transition Minerals proposes seven voluntary Guiding Principles:
1: Human rights must be at the core of all mineral value chains.
2: The integrity of the planet, its environment and biodiversity must be safeguarded.
3: Justice and equity must underpin mineral value chains.
4: Development must be fostered through benefit sharing, value addition and economic diversification.
5: Investments, finance and trade must be responsible and fair.
6: Transparency, accountability and anti-corruption measures are necessary to ensure good governance.
7: Multilateral and international cooperation must underpin global action and promote peace and security.
To embed and maintain these Guiding Principles across critical energy transition mineral value chains, the panel has made five Actionable Recommendations that leverage the United Nations in the creation of key bodies and processes. These include the establishment of:
1: A High-Level Expert Advisory Group to accelerate greater benefit-sharing, value addition and economic diversification in critical energy transition minerals value chains as well as responsible and fair trade, investment, finance, and taxation.
2: A global traceability, transparency and accountability framework along the entire mineral value chain – from mining to recycling – to strengthen due diligence, facilitate corporate accountability and build a global market for critical energy transition minerals.
3: A Global Mining Legacy Fund to build trust and address legacy issues as a result of derelict, ownerless or abandoned mines, and strengthen financial assurance mechanisms for mine closure and rehabilitation.
4: An initiative that empowers artisanal and smallscale miners to become agents of transformation to foster development, environmental stewardship and human rights.
5: Equitable targets and timelines for the implementation of material efficiency and circularity approaches across the entire life cycle of critical energy transition minerals.
“These aim to empower communities, create accountability, and ensure that clean energy drives equitable and resilient growth. That includes advancing efforts to ensure maximum value is added in resource-rich developing countries,” Secretary-General Guterres explained.
Zimbabwean President Emmerson Munagagwa said that technology transfer and local critical mining processing are essential to enable Africa to lead in renewable energy value chains.
Speaking at the panel’s roundtable in Baku, President Munagagwa highlighted ongoing initiatives to add value to mined minerals within Africa before export, capturing greater economic benefit and employment opportunities.
The entire United Nations system is coming together to help implement the panel’s findings.
The Panel on Critical Energy Transition Minerals convened virtually, and in person in Copenhagen in July and in Nairobi in August. These meetings were enriched by extensive multistakeholder consultations with countries and organizations not represented on the panel.
Members of the Panel
Government and Intergovernmental Actors include: the African Union, Australia, Botswana, Brazil, Canada, Chile, China, Colombia, Democratic Republic of the Congo, Egypt, European Union, India, Indonesia, Japan, Kazakhstan, Namibia, Nigeria, South Africa, United Arab Emirates, United Kingdom, United States, Viet Nam, Zambia, and Zimbabwe.
Non-State Actors include: Climate Action Network International, Extractive Industries Transparency Initiative, Initiative for Responsible Mining Assurance, International Council on Mining and Metals, International Energy Agency, Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, IndustriALL Global Union, International Renewable Energy Agency, Natural Resource Governance Institute, Organisation for Economic Co-operation and Development, Principles for Responsible Investment, United Nations Permanent Forum on Indigenous Issues, United Nations Secretary-General’s Youth Advisory Group on Climate Change, and the World Bank.
“I would like to commend the UN Secretary-General’s leadership in tackling such a transformational issue. This is what multilateralism is all about,” Panel Co-chair Jørgensen declared.
“Last year at COP28, all countries agreed to triple the global renewables capacity and double energy efficiency. Demand for critical minerals will skyrocket. We must now seize the opportunity to grow our economies, protect our societies, preserve our environment, and share benefits more justly while we tackle the climate crisis. We cannot afford to repeat the mistakes of the past,” she advised.
The Rare Earth Elements
The rare earth elements are a set of 17 metallic elements. These include the 15 lanthanides on the periodic table plus scandium and yttrium.
The U.S. Geological Survey explains, “Rare-earth elements (REE) are necessary components of more than 200 products across a wide range of applications, especially high-tech consumer products, such as cellular telephones, computer hard drives, electric and hybrid vehicles, and flat-screen monitors and televisions. Significant defense applications include electronic displays, guidance systems, lasers, and radar and sonar systems.”
Two REE’s are used in electric vehicles – Neodymium (Nd) and Dysprosium (Dy) used in permanent magnet motors.
An average hybrid or electric vehicle will use between four and 12 pounds of rare earth magnets, depending on the design, according to Bunting, a U.S. magnetics manufacturer.
Rare earth magnets are found in many EV parts: heating, ventilation, and air conditioning (HVAC) systems; transmission, steering, and brakes; hybrid engine or electric motor compartment; sensors, such as those used for seats, security, cameras; window and door controls; entertainment systems, speakers, radio; electric vehicle batteries; and hybrid fuel and exhaust systems.
Most of the rare earth element reserves are located in China, estimated at some 44 million metric tons. Other major rare earth countries based on reserve volume are Vietnam, Russia, and Brazil. The United States also has reserves, estimated at 1.8 million metric tons, according to Statista.
The U.S. Position
“2024 will be the hottest year on record,” John Podesta, [pictured below] leader of the U.S. delegation to COP29 and Senior Advisor to President Joe Biden for International Climate Policy.
“The consequences of a rapidly warming planet are all around us,” he said, “from the hundreds of people killed by Hurricanes Helene and Milton in the United States to the millions of children at risk of starvation in southern Africa from the worst drought in decades, to the torrential rain that displaced nearly 100,000 in Colombia,” Podesta said.
“Vulnerable communities do not just need ambition – they need action. That’s why President Biden and Vice President Harris have marshalled unprecedented climate resources over the past four years,” he said.
“Because of historic private sector investments made possible by the Inflation Reduction Act, the United States economy will continue down the path of decarbonization, reducing emissions for years to come. And we are on track to meet President Biden’s ambitious international public finance commitment of $11 billion per year by the end of 2024,” said Podesta.
But with U.S. President-elect Donald Trump entering the White House again in January, the United States could again be pulled out of the Paris Accords as it was in 2017 when Trump was in his first term.
Solving Big Problems Takes Big Money
The multilateral development banks have projected that their combined climate finance contributions will reach US$120 billion annually by 2030. Of this, US$42 billion is earmarked for adaptation efforts aimed at helping vulnerable countries address the impacts of climate change.
For high-income countries, the multilateral development banks expect their collective climate financing to total US$50 billion annually, with US$7 billion allocated to adaptation.
The banks’ commitments include a goal of mobilizing US$65 billion annually from the private sector, marking a key initiative to leverage private finance for climate action in low- and middle-income nations.
These financial estimates were presented during a high-level meeting in Baku, hosted by COP29 President Mukhtar Babayev and attended by heads of state, senior executives from international financial institutions, and representatives from global organizations like the International Monetary Fund.
Asian Development Bank President Masatsugu Asakawa Tuesday joined with other multilateral development banks to show their commitment to climate change financing at a kick-off event at COP29 for the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP).
“We know that the battle against climate change is the major challenge of our time,” Asakawa said. “It is a challenge that requires transformative, decisive, and innovative action, which IF-CAP will provide. … With a multiplier effect of 4.5, it will unleash billions of dollars in much-needed investment for combating climate change in Asia and the Pacific.”
In Africa, Sudan Reaches for Renewables
The East African country of Sudan, for instance, has immense potential for renewable energy – with access to abundant hydropower, high wind speed and solar radiation. Renewable energy is a key solution because 60 percent of the population still lacks access to electricity.
UNICEF Youth Advocate Monzir Mohammed is from Sudan’s Blue Nile region, bordering Ethiopia and South Sudan, one of the most rapidly warming areas in Sudan.
“My message to the whole world is to keep peace with each other in order to protect the planet from danger in the coming years, and to be protected from environmental pollution and from natural disasters that may occur in the future,” says Monzir.
Climate change has worsened the frequency and intensity of disasters such as heatwaves, droughts and floods, and led to water scarcity and environmental degradation in the Blue Nile. The region’s air temperatures have increased by 1°C every year since the 1970s.
Rainfall has declined over the last 30 years and has become more erratic. Groundwater is being depleted across the region.
This year, heavy rains and flash floods have affected nearly 350,000 people, destroying and damaging an estimated 50,000 homes in 16 out of the 18 Sudanese states.
“Africa is threatened by the climate and the environment in terms of floods, desertification, food security and other issues, so there should be meetings and conferences in those countries so that people think about solving problems before they happen,” says Monzir.
Africa Seeks Recognition of Its ‘Green Wealth’
African heads of state and government are calling for the continent’s vast natural capital to be calculated when measuring the Gross Domestic Product (GDP) of their countries.
In a communique adopted Wednesday on the sidelines of the World Leaders’ Summit of COP29, they emphasized the unique contribution of Africa’s forests – carbon sequestration, pollution control, retention of water, and soil fertility.
The high-level meeting, titled Measuring the Green Wealth of Africa, was jointly convened by the President of the Republic of Congo Denis Sassou Nguesso, Kenyan President Dr. William Ruto, and president of the African Development Bank Group Dr. Akinwumi Adesina.
The African continent must make the best of its natural capital, which is neglected or ignored in national accounts,” President Sassou Nguesso said.
“Africa contributes significantly to global public good for tackling climate change with its vast resources of natural capital, its vast natural capital has been undervalued,” Dr. Adesina pointed out.
This situation “…makes Africa to be green rich but cash poor,” he said.
He expressed concern at what he described as the “carbon grab” where African countries give away their vast amounts of land to carbon credits yet get very little in return.
“While the price of carbon in Europe is high and could be as high as $200 per ton because of the strict EU Emission Trading Standards, carbon price in Africa could be as low as $3 to $10 per ton,” Dr. Adesina said. “Africa gets underpaid for carbon because its carbon sinks are undervalued.”
“The sequestered carbon on the lands can no longer be used as part of the nation’s nationally determined contributions,” he said, “that means countries lose sovereignty over their lands,” Adesina explained. “The ongoing carbon grab in Africa is a lose-lose proposition.”
In their communique, African leaders said they will work with other developing countries and regions of the world, including Asia, Latin America and the Caribbean, in forging a strong global alliance to ensure the inclusion of natural capital in the GDP of nations.
At the heart of the leaders’ conversation is the need to “ensure that Africa’s ecosystem services such as carbon sequestration and pollution control are valued as global public goods,” President Ruto said through a spokesperson.
“By appropriately valuing our green wealth, countries can unlock financial flows into investments to boost our economies and even improve our credit ratings,” Ruto said.
President Paul Kagame of Rwanda said Africa is a key player in the fight against climate. “Unfortunately, Africa’s key obstacle remains access to climate finance,” said Kagame. “We are not asking for handouts but for the world to pay for something that has tremendous value for all of us.”
Host Country Azerbaijan Welcomes Electric Vehicles
Azerbaijan is importing more electric vehicles than in the past. In the first six months of 2024, at least 10,460 hybrid and fully electric cars were imported to Azerbaijan, while in the first six months of 2023, only 8,453 hybrid and all-electric cars were imported.
“The number of charging stations is on the rise, keeping pace with the surge of electric cars in Azerbaijan, as various charging points have popped up in Baku and other major cities,” wrote Farid Zohrabov on the Trend News Service in September.
Close to shopping hubs, hotels, and public areas, currently there are 55 to 60 charging points in Baku, with about 37 across the country. The installation of charging points in 147 Azerbaijan locations is planned for this year.
These charging stations are supported by renewable energy, and now Azerbaijan also will produce electric buses.
In a major step toward greener public transportation in Baku, on Wednesday Azerbaijan signed a project implementation agreement with China’s electric vehicle manufacturer, BYD Company Ltd, to localize BYD electric bus production in the country, Azernews reports.
The electric bus deal is a new development for Azerbaijan, a country rich in natural resources, its economy based on oil and other energy exports.
Azerbaijan was an independent nation from 1918 to 1920 but was then incorporated into the Soviet Union. It became a constituent Soviet republic in 1936. Azerbaijan declared sovereignty on September 23, 1989, and independence on August 30, 1991. Still, Russia and Azerbaijan are de facto and de jure allies in many ways, including military.
Baku, the capital and commercial hub of Azerbaijan, is a low-lying city of more than 2.4 million people with a coastline on the Caspian Sea. Oil is produced both onshore and offshore in the Caspian Sea, with offshore production making up about one-quarter of the total.
Azerbaijan’s hosting of the COP29 summit has been questioned, both because of the country’s human rights record, which many view as incompatible with the open dialogue and civil society input needed to formulate and enact climate policy, and also because a petrostate has again been selected to host a climate conference. COP28 in 2023 was hosted by the United Arab Emirates, among the world’s 10 largest oil producers.
Since gaining independence in 1991, Azerbaijan has discovered new oil and natural gas fields under the Caspian Sea and has focused its economy even more strongly on hydrocarbons.
Yet renewable energy sources are being developed in Azerbaijan. Solar and wind energy projects are increasing the amount of green energy entering the Azeri grid, which is being modernized to facilitate this integration.
The government says it supports green energy strategy and programs that prioritize energy efficiency and renewable energy development.
To demonstrate that commitment at COP29, a groundbreaking ceremony was held Wednesday for the 240 MW Shafag Solar Power Plant in Azerbaijan’s liberated Jabrayil district – the first large-scale solar energy project and the largest foreign direct investment initiative in Azerbaijan’s liberated territories, claimed and fought for by Armenia but returned to Azerbaijan in 2020. An estimated US$200 million is planned for investments in the project.
The Shafag project is expected to pilot a new commercial structure called a Virtual Power Transfer Arrangement. It will enable the project to produce solar power and deliver it to the national power grid operator, AzerEnergy. The operator will deliver electricity to the Sangachal terminal, a natural gas processing plant and oil production plant on the coast of the Caspian Sea south of Baku, which will allow the terminal to use renewable energy to process fossil fuels.
Sources: Statements by: Antonio Guterres, Nozipho Joyce Mxakato-Diseko, Ditte Juul Jørgensen, Monzir Mohammed, Simon Stiell, Masatsugu Asakawa, Emmerson Munagagwa, Denis Sassou Nguesso, William Ruto, Akinwumi Adesina; additional material from: United Nations, Panel on Critical Energy Transition Minerals, International Energy Agency, UNFCCC COP29 organizers, COP28 organizers, African Development Bank, Asia Development Bank, World Bank, Azernews, Trend News Service, News.Az, Earth Negotiations Bulletin, Statista, Bunting, Carnegie Endowment for International Peace, U.S. Geological Survey
Tags: COP29, United Nations, climate, climate change, rare earth elements, copper, lithium, nickel, Baku, Azerbaijan, Panel on Critical Energy Transition Minerals, Innovative Finance Facility for Climate in Asia and the Pacific, Shafag Solar Power Plant, renewable energy, oil, gas, fossil fuels, Caspian Sea
By Sunny Lewis, journalist, founder of Environment News Service (ENS) at: ens-newswire.com, and expert in the field of sustainable mobility in the United States and around the Pacific Rim.
Toute l’actualité de Movin’On
dans votre boîte mail
Auteur
Partager
L’actualité de la mobilité durable
Découvrez les dernières tendances, des analyses thématiques et nos prochains rendez-vous
