Latest news with #greentransition
Forbes
6 hours ago
- Business
- Forbes
U.S. - China Rare Earths Minerals Deal Can Be Upscaled Via G20
Samples of rare metals displayed in Sillamae, Estonia, where a company is building a new plant to ... More try and challenge China's grip on rare earth magnets, a vital component of electric vehicles. Photographer: Peter Kollanyi/Bloomberg The announcement of a deal between the United States and China on rare earth magnets for a range of technologies is a welcome reprieve for many technology companies and for the defense sector as well. Yet, this deal remains fragile in the context of capricious tariffs and a dysfunctional dispute resolution system within the World Trade Organization. What is now needed is to capitalize on the deal and use it as a confidence-building measure to establish a longer-term international agreement for managing critical minerals supply. In a recent paper, myself and a coalition of scholars from across a range of mineral producing and consuming countries have argued for a 'minerals trust' for the green transition. We also prepared an accompanying policy brief under the auspices of the United Nations University to provide specific policy recommendations ahead of the G7 meeting in Canada earlier this month. The G7 issued a communique on critical minerals on June 17th which was fairly broad in scope but most noteworthy was the fact that China was not singled out for constraining mineral supply. Furthermore, the communique explicitly mentioned the role of the more multilateral G20 organization in furthering aspirations for investment, particularly through the G20 Compact for Africa. China as well as Russia are of course members of the G20 along with other key mineral producers such as Indonesia, Saudi Arabia, Türkiye, Brazil and South Africa. It would be opportune to now move the conversations on minerals diplomacy to the G20 which will incidentally be chaired by the United States of America in 2026. A key intermediary step will be the planned critical minerals conference this September in Chicago which has been announced already at the G7 meetings. At this conference, there needs to be consensus reached on what are realistic targets for 'near-shoring' and diversification based on thigh quality ore bodies and economically feasible technologies. Mineral extraction sites are geologically determined and any policies that set targets for domestic production need to be predicated in geoscience. The challenge at present is that there are more than 400 national policies on critical minerals in various forms worldwide according to the International Energy Agency's policy tracking tool. Most of these policies are not aligned with geoscience or economics of extraction. Furthermore, they often neglect the prospects for a circular economy as well for minerals. The rare earths deal between the United States and China should be expanded to have a systems level approach towards building a minerals trust, particularly for those metals needed for the Green Transition. The trust would also provide opportunities to have stockpiles and source metals from recycled sources. Currently, less than 5% of rare earth magnets are recycled but this may soon change based on recent technologies that have been developed by Swiss Federal Institute of Technology in Zurich (ETH). Yet much of the infrastructure from which these magnets would be recycled is also in China. Ultimately, even with diversification efforts, China's role in sourcing rare earths from both primary and secondary source cannot be discounted and pursuing a cooperative approach is both ecologically and economically prudent.
Bloomberg
11 hours ago
- Business
- Bloomberg
EU Set to Open Doors to Imported Carbon Credits Under 2040 Goal
The European Union wants to allow limited imports of carbon credits under a planned 90% emissions reduction goal for the next decade, in a bid to reduce the costs of its ambitious green shift and get member states on board. The European Commission, the bloc's executive arm, is poised to propose that certain high-quality credits from a new United Nations-supervised mechanism can account for 3% of the pollution cut by 2040, according to a draft document seen by Bloomberg News.
Reuters
18 hours ago
- Politics
- Reuters
Denmark warns EU against halting green transition
COPENHAGEN, June 27 (Reuters) - European nations should not halt the continent's green transition, Denmark's climate minister told Reuters, as his country prepares to lead EU negotiations on a new climate target amid a backlash from some governments concerned about its cost. The European Commission plans to propose a new 2040 climate target next week to slash EU emissions by 90% compared with 1990 levels, but faces pushback from countries including Poland and France which are worried that this aim is too high. Lars Aagaard, energy and climate minister for Denmark, said in an interview that short-term challenges - including budgets stretched by increased military spending - must not distract from Europe's need to switch to green energy. "The answer to Europe's competitiveness is that we transition to using electricity for more things. It's that we can produce it ourselves. We can do that with renewable energy. We can do it with nuclear power," Aagaard said. "It's not a solution for the climate, nor the security challenge, to halt the (green) transition in Europe," he added. Denmark takes over the EU's six-month rotating presidency in July and will lead negotiations on the 2040 goal, at a time when Europe is sharply raising defence spending following Russia's full-scale invasion of Ukraine. The EU's green transition and its race to re-arm are taking place against a "grim background," Aagaard said, citing geopolitical tensions. "It's not a celebration that Europe has to rearm militarily. It's because we are threatened. And it's not a celebration that we have to go green. Climate change is also serious," he said. The European Union has rolled back a series of green policies this year, trying to contain reactions from member countries and struggling industries over environmental rules. The 2040 goal will aim to keep EU countries on track between their 2030 emissions target and a 2050 net zero goal.
Bloomberg
18 hours ago
- Business
- Bloomberg
China's Grid Looks Ready for Searing Heat After Heavy Investment
Welcome to our guide to the commodities markets powering the global economy. Today, energy reporter Dan Murtaugh looks at how years of heavy investment have safeguarded China's electricity grid from summer demand spikes. Scorching weather in China is highlighting how the world's biggest green transition is paying dividends when it comes to energy security.
Bloomberg
2 days ago
- Politics
- Bloomberg
EU Climate Push Comes Under Pressure With France Flagging Risks
The European Union's interim climate plan for 2040 faces a pushback at a summit of the bloc's leaders, where French President Emmanuel Macron plans to stress the need for competitive industry during the green transition. Macron is seeking to raise the issue during a debate on competitiveness scheduled later on Thursday, setting the stage for other leaders to express their concerns about the climate goal to be proposed next week, according to diplomats familiar with the matter.
