{"id":2250,"date":"2020-03-26T19:09:47","date_gmt":"2020-03-26T19:09:47","guid":{"rendered":"http:\/\/www.gronenonline.com\/_gronen1\/?p=2250"},"modified":"2020-03-26T19:09:47","modified_gmt":"2020-03-26T19:09:47","slug":"coronavirus-and-global-supply-chain-disruption-a-wake-up-call-for-climate-policy","status":"publish","type":"post","link":"http:\/\/www.gronenonline.com\/_gronen1\/2020\/03\/26\/coronavirus-and-global-supply-chain-disruption-a-wake-up-call-for-climate-policy\/","title":{"rendered":"Coronavirus And Global Supply Chain Disruption: A Wake-Up Call For Climate Policy?"},"content":{"rendered":"

Guest Bloggers: Nives Dolsak and Aseem Prakash<\/strong><\/span><\/p>\n

Coronavirus has slowed down economic activity and temporarily reduced China\u2019s carbon emissions. However, there is a deeper implication for climate policy: decarbonization depends on global supply chains for inputs required for electric vehicles, solar panels, and wind turbines.<\/span><\/p>\n

In 2015, solar and wind contributed to about 7% of global electricity.\u00a0\u00a0Their salience is projected to increase to 50% by 2050.<\/a>\u00a0The\u00a0International Energy Agency<\/a>\u00a0forecasts that the number of electric cars worldwide will increase from 3 million in 2017 to 125 million by 2030.<\/span><\/p>\n

China dominates the global solar panel market. Supply disruptions due to coronavirus are already posing serious problems in countries such as India,\u00a0which imports 80% of its panels from China<\/a>. But the decarbonization problem is not about the availability of finished products. These could be manufactured in many countries.<\/span><\/p>\n

The strategic challenge lies in sourcing inputs, which can be found only in specific countries. Climate advocates should explain how \u201ccritical minerals\u201d will be procured, given their\u00a0skyrocketing demand<\/a>. Afterall, there are technological, ecological, regulatory, and political hurdles in increasing their supplies.<\/span><\/p>\n

What are \u201ccritical minerals\u201d?<\/strong><\/span><\/p>\n

The\u00a0U.S. government<\/a>\u00a0has identified\u00a035 minerals<\/a>\u00a0critical for the economy and national security. These include lithium, nickel, cobalt, and manganese. Many of these are also essential for decarbonization. Every electric car requires\u00a010-20 pounds of cobalt<\/a>\u00a0and 40 pounds of lithium!<\/span><\/p>\n

Within critical minerals, there is a subset known as rare earth elements, REEs (while the government puts all REEs in the critical minerals list,\u00a0not all REEs are critical for the economy<\/a>). REEs are especially crucial for\u00a0high-tech products such as electric and hybrid vehicles<\/a>.<\/span><\/p>\n

The US relies predominantly on imports for 29 of the 35 critical minerals. For REEs, however, it is fully dependent on imports. The political problem is that China controls\u00a070%<\/a>\u00a0of global REE supplies.<\/span><\/p>\n

The Chinese government has not been shy of using this monopoly for political ends. In 2010, when Japanese coast guard detained a Chinese fishing trawler,\u00a0China cut off REE supplies to Japan<\/a>. More recently, Chinese President Xi Jinping suggested that in\u00a0response to US tariffs<\/a>, China may cut off REE exports to the US.<\/span><\/p>\n

Why Not Open New Mines and Processing Facilities?<\/strong><\/span><\/p>\n

Critical minerals are\u00a0either mined or recovered during the processing, smelting, or refining of another mineral<\/a>. Mines and processing facilities tend to have\u00a0a toxic legacy<\/a>. Perhaps, this is why many fear that the industry will use national security (or climate change) as a ruse to weaken environmental protection laws.\u00a0 Indeed, Senator Lisa Murkowski<\/a>\u00a0(R-Alaska) and Representative\u00a0Mark Amodei (R-Nevada<\/a>) have introduced \u201ccritical minerals\u201d bills that seek to ease the mine permitting process.<\/span><\/p>\n

Supply shortages can be addressed in other ways as well. The\u00a02017 Federal Critical Mineral<\/a>\u00a0policy notes the role of R&D in reducing critical mineral use in products. There is an opportunity to recycle minerals from discarded products. Senator Angus King (I-Maine) has proposed the \u201cBattery and Critical Mineral Recycling Act<\/a>.\u201d For perspective, the US recycles less than 5% of spent batteries, compared with roughly 40% in Europe.<\/span><\/p>\n

Lessons from Blood Diamonds: New Governance Initiatives<\/strong><\/span><\/p>\n

Many critical minerals tend to be mined and processed in\u00a0conflict-prone countries<\/a>\u00a0with poor governance<\/a>. Take the case of cobalt, sometimes called the \u201cblood diamonds of batteries.\u201d\u00a0About three-fourths of the world\u2019s cobalt originates from Congo<\/a>. About 20% of this production takes place in informal artisanal mines, which have poor environmental and\u00a0labor safety<\/a>\u00a0records.\u00a0While Elon Musk has tweeted that he wants a cobalt-free battery<\/a>, this may take time,\u00a0even for Tesla<\/a>.<\/span><\/p>\n

The 2010 Dodd-Frank Act<\/a>\u00a0required American companies to verify that tin, tungsten, tantalum, and gold they use does not originate from Congo and its adjoining countries. Given these governance gaps, several\u00a0multi-stakeholder initiatives<\/a>\u00a0have emerged to improve environmental and labor rights in the mining industry. For example, the Initiative for Responsible Mining Assurance (IRMA<\/a>), a global certification program, requires mining companies to follow the practices outlined in the\u00a0Standard for Responsible Mining<\/a>\u00a0and subject themselves to third party audits.<\/span><\/p>\n

The coronavirus episode reveals the downside of globalized supply chain and the political perils of allowing China to dominate them. Without a clear mineral supply chain strategy, decarbonization by 2040 or 2050 will be challenging to achieve.<\/span><\/p>\n

Previous version of this commentary was published in Forbes.com<\/a>.<\/span><\/p>\n

Nives Dolsak is Stan and Alta Barer Professor in Sustainability Science and Director of the School of Marine & Environmental Affairs. Aseem Prakash is the Walker Family Professor and the Director of the Center for Environmental Politics. Both are at the University of Washington, Seattle.<\/em><\/p>\n

 <\/p>\n

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