Global energy and climate leaders will gather this week at the Energy Forum in Sydney, co-hosted by the Australian Government and the IEA, to discuss how to expand and strengthen supply chains for the clean energy technologies needed for a secure and affordable transition. to net zero emissions. The event was opened by Prime Minister Anthony Albanese of Australia with high profile participants including IEA Executive Director FatihBirol; Australia’s Minister for Climate Change and Energy Chris Bowen; US Secretary of Energy Jennifer M. Granholm; Japan’s Minister of Economy, Trade and Industry Koichi Hagiuda; Samoan Minister of Natural Resources and Environment Toolesulusulu Cedric Schuster; India’s Minister of Power, New and Renewable Energy Raj Kumar Singh; and Indonesian Minister of Energy and Mineral Resources Arifin Tasrif. Top leaders from industry and finance also attended.
Discussion at the Energy Forum in Sydney on 12-13 July reflect the importance of international dialogue and cooperation to achieve energy security and climate goals – and the IEA’s central role in this effort. Governments around the world are working to reduce greenhouse gas emissions to net zero and limit the worst effects of climate change. This is to redefine global energy security to include the supply of minerals, materials and production capacity needed to deliver clean energy technologies. Pressure on these supply chains from Covid-related lockdowns has been compounded by Russia’s invasion of Ukraine, with supply disruptions and soaring prices affecting a wide range of key commodities. These shocks risk undermining the pace of clean energy transitions, for example by hindering the production of electric cars or the deployment of renewable energy sources, requiring smart action by governments to meet these challenges.
“To sustainably meet the challenges we face as a result of today’s global energy crisis, we need an immediate and massive expansion of clean energy technologies to build a resilient and affordable energy system,” said Dr. Birol. “Establishing safe and sustainable supply chains for these technologies is essential, so I am very pleased that decision-makers from around the world have come together for these discussions, led by the Australian Government and the IEA, to strengthen international action.”
To inform conversations at the Sydney Energy Forum, the IEA published a series of new studies, including a Special Report on Global Solar PV Supply Chains and an Analysis of Global EV Battery Supply Chains. Issues affecting different technologies are summarized in the cross-sectional report Securing Clean Energy Technology Supply Chains, which assesses current and future supply chain needs for key technologies – including solar PV, EV batteries and low-emission hydrogen – and provides a framework for governments. and industry to identify, assess and respond to emerging opportunities and vulnerabilities. This report is a precursor to the 2023 edition of Energy Technology Perspectives, the IEA’s flagship publication, which will present a detailed analysis of what is needed to develop and expand a range of clean energy technology supply chains to achieve net zero emissions.
In light of the IEA’s growing role in this space, IEA member governments mandated the agency in March to work on steps to improve the security of global supply of critical minerals needed for clean energy transitions, making this a major expanding area of ​​work.The Securing Clean Energy Technology Supply Chains report includes specific insights for the Indo-Pacific region, which is home to many major commodity producers such as Australia for lithium and Indonesia for nickel. 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 approval of clean energy and critical mineral production projects while maintaining high environmental and labor standards. It also calls for coordinated action to strengthen supply chain resilience, including considering stockpiles of critical minerals, as has been done for oil for half a century, and supporting a robust recycling industry to reduce demand for raw materials. The report recommends increasing and prioritizing investment in research, development and demonstration to develop technologies and production processes that rely on fewer critical minerals or a more diversified mix, as well as training to ensure an appropriately skilled workforce to deliver clean technologies energy chains.
