Green transformation: summary of objectives and importance of critical minerals

Milan Frydrych

A chapter in CNB Global Economic Outlook - September 2024, 2024, pp 14-22 from Czech National Bank, Research and Statistics Department

Abstract: In the last two decades, the global community has started to intensively deal with issues related to environmental protection and mitigation of the effects of climate change. The 2015 Paris Agreement set a target of limiting global warming to significantly below 2 C, with an aspiration not to exceed 1.5 C above the pre-industrial average. This target requires a transformation of energy systems, industry and the whole global economy towards low-carbon and sustainable models. The transition to renewable and low-emission energy sources comes with a number of opportunities and challenges. On the one hand, there is potential for other sources of economic growth, job creation and improved quality of life through a healthier environment. On the other hand, this transformation requires significant investment in new technologies and infrastructure, as well as changes in current production and consumption patterns. The article presents the specific targets agreed at the last UN COP28 (Conference of the Parties) meeting in Dubai in 2023 and how they are being met. We then familiarise ourselves with the critical materials that are an essential part of the transition to clean energy. Their regional accumulation and processing increase the risk of their use in geopolitical disputes and endangers the timely transition to a green economy. This vulnerability can be reduced by investments in recycling, which is, however, technologically insufficient and not completely ready for the large number of products that will be disposed of in future decades.

Date: 2024
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