World leaders associated with the energy and climate field are deliberating at the Energy Forum in Sydney. The goal: to strengthen supply chains for technologies such as batteries used in electric cars and solar panels, among others. Representatives of the governments of Australia, Japan, India, Indonesia, the United States, among others, are involved in the discussions. The organizer of the meeting, the International Energy Agency (IEA), recommends, among other things, improving the efficiency and speed of permitting and approvals for clean energy projects and critical mineral production, while maintaining high environmental and labor standards.
Global energy and climate leaders are meeting this week at the Sydney Energy Forum, co-hosted by the Australian government and the IEA, to discuss how to scale and strengthen supply chains for the clean energy technologies needed for a safe and affordable transition to net-zero emissions.
The discussions reflect the importance of collaboration to achieve energy and climate security goals. Governments around the world are striving to reduce greenhouse gas emissions to net zero and limit the impacts of climate change. This is to redefine global energy security, encompassing the supply of minerals, materials and manufacturing capacity needed to deliver clean energy technologies.
Secure electric generation
The pressure on these supply chains caused by the Covid-related blockades was compounded by the Russian invasion of Ukraine. This has resulted in supply disruptions and soaring prices affecting a wide range of key commodities. These factors threaten to undermine the pace of the transition to clean energy, for example by hindering the production of electric vehicles or the deployment of renewables. Therefore, governments should step up efforts to meet these challenges, International Energy Agency officials explain.
– To sustainably address the challenges that today’s global energy crisis is causing, we need an immediate and widespread expansion of clean energy technologies to build a resilient and affordable energy system. Establishing secure and sustainable supply chains for these technologies is essential – said MEA Executive Director Fatih Birol.
Essential technologies
The IEA has prepared a series of new studies, including a Special Report on Global PV Supply Chains and an analysis of Global EV Battery Supply Chains. The cross-cutting report, Securing Clean Energy Technology Supply Chains, assesses current and future supply chain needs for key technologies including EV batteries and low-carbon hydrogen.
The report identifies five pillars for government and industry action: diversification, acceleration, innovation, collaboration and investment. It recommends improving the efficiency and speed of permitting and approvals for clean energy projects and critical mineral production, while maintaining high environmental and labor standards. It also calls for coordinated measures to strengthen supply chain resilience, including considering critical minerals stockpiles, as has been done for oil for half a century, and promoting a robust recycling industry to reduce demand for raw materials.
The report recommends increasing and prioritizing investment in research, development and demonstration to create technologies and production processes that rely on smaller quantities of critical minerals or a more diversified mix, as well as in training to ensure an adequately skilled workforce along with the supply of clean energy technologies.
