CHAPTER 7
7.1 THE ROLE OF CRITICAL MATERIALS IN THE ENERGY TRANSITION
The world is undergoing an unprecedented transformation to abate the detrimental impacts of climate change. The energy transition involves three pillars: energy efficiency, renewable energy generation and the mass electrification of end-use sectors. IRENA’s World Energy Transitions Outlook (WETO) outlines a pathway for the world to limit global temperature rise to 1.5°C and bring carbon dioxide (CO 2) emissions to net zero by 2050. IRENA’s 1.5°C Scenario proposes that renewables constitute 90% of the energy mix by 2050, a shift that would increase the installed capacity of renewables from 2 800 gigawatts (GW) in 2020 to 27 700 GW in 2050. Under this scenario, 80% of all road vehicles have to be electric by 2050. Such changes would result in a tripling of electricity demand in the next three decades, bringing about a plethora of challenges. Although the energy transition is necessary to reach global climate goals in a resilient and equitable manner, there is growing concern over the availability and accessibility of the minerals and metals required to do so (IRENA, 2021a). Key technologies such as solar panels, wind turbines and batteries require critical materials such as nickel, copper, lithium, and rare earth elements (REEs). Concerns about future access to these materials, the difficulty of increasing supply rapidly enough to match demand, price increases and volatility, and geopolitical issues are mounting. These challenges should be analysed and taken into account in governments’ energy transition plans.
Plans for the energy transition must take critical materials into account so as to avoid unforeseen delays
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