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News

IRENA | Geopolitics of the Energy Transition: Critical Materials

July 13, 2023

HCSS strategic analyst Irina Patrahau has contributed to the review process of the latest IRENA report, Geopolitics of the energy transition: Critical materials, which provides comprehensive insights into the significance of critical materials, examining their associated geopolitical implications and offering recommendations for a sustainable and efficient global energy transition.

Critical materials are today the focus of much international dialogue and diplomacy. Their production and processing are highly concentrated geographically, posing challenges related to resource security and geopolitical dynamics. This concentration creates vulnerabilities and uncertainties for both consuming and producing countries that may affect the deployment, cost and sustainability of energy transition technologies. Strategies to diversify the supply and production chains for these materials are starting to emerge, reflecting multiple economic, political and social priorities and considerations.

The dependency risks and supply dynamics of critical materials fundamentally differ from those of fossil fuels, owing to their vastly different characteristics and patterns. Geopolitics of the energy transition: Critical materials highlights that current patterns of production and processing will remain largely unchanged in the coming years, stressing the importance of international cooperation and prudent policy choices to ensure that the energy transition advances at the necessary speed worldwide. It urges the development of transparent markets with coherent standards and norms, grounded in human rights, environmental stewardship and community engagement. The report also examines possibilities for developing countries to advance their industrialisation strategies and capture greater economic value from their mineral wealth.

The report offers a forward-looking examination of the geopolitical and geoeconomic aspects and implications associated with the anticipated increase in the demand for, and supply of, critical materials. It investigates the evolving landscape of supply chains and trade patterns, as well as the socioeconomic and sustainability factors surrounding extraction and processing. Additionally, the report assesses the strategic significance of critical materials for economic competitiveness and the acceleration of renewable energy transitions.

Download full report here (PDF)
About IRENA

The International Renewable Energy Agency (IRENA) is a lead global intergovernmental agency for energy transformation that serves as the principal platform for international cooperation, supports countries in their energy transitions, and provides state of the art data and analyses on technology, innovation, policy, finance and investment. IRENA drives the widespread adoption and sustainable use of all forms of renewable energy, including bioenergy, geothermal, hydropower, ocean, solar and wind energy in the pursuit of sustainable development, energy access, and energy security, for economic and social resilience and prosperity and a climate-proof future.

IRENA’s membership comprises 167 countries and the EU. Together, they decide on the Agency’s strategic direction and programmatic activities, in line with the global energy discourse and priorities to accelerate the deployment of renewables-based energy transitions worldwide.

The #EnergyTransition will drive the demand for #CriticalMinerals.

While reserves are not limited, supply chains must be diversified to minimise geopolitical risks & avoid a slowdown of the transition, highlights a new @IRENA report.

Learn more👉https://t.co/L7FqUZIeQJ pic.twitter.com/dUD1XZGWGy

— IRENA (@IRENA) July 12, 2023

Happy to have contributed to the review process of the latest @IRENA report on the Geopolitics of Critical Materials.

It can be accessed here: https://t.co/OYsUO6TlIE https://t.co/miWjE9diSr

— Irina Patrahau (@IPatrahau) July 12, 2023

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