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Adviser's Note - April 2023



 

Energy Review, Vol 5. Issue 04. 2023


The transition to a low-carbon economy relies heavily on the availability of critical minerals, such as cobalt, lithium, and rare earth elements. Its demand is expected to increase significantly in the coming years, driven by the growth of renewable energy technologies and the transition to electric vehicles. However, the multiple stages of their value chain present several concerns that require urgent attention from both G7 and G20 countries. These include issues related to mining practices, social and environmental spillovers, and supply chain transparency and resilience. Therefore, it is crucial that the G7 and G20 countries work together to ensure a responsible and secure supply of critical minerals, supporting the transition to a sustainable and low-carbon economy.

A recent policy brief published by the Think Tank Engagement Group of the G7 Summit highlights the importance of addressing these concerns. It calls for a collaborative and comprehensive approach to tackle the challenges associated with critical minerals, including the development of sustainable mining practices, the promotion of responsible sourcing, and the establishment of a transparent and resilient supply chain.


(Dr. Nandakumar Janardhanan, Advisor, Energy Review) ■□■



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