bitcoin
bitcoin

$98781.27 USD 

0.20%

ethereum
ethereum

$3418.87 USD 

2.31%

tether
tether

$1.00 USD 

0.03%

solana
solana

$258.92 USD 

0.08%

bnb
bnb

$670.69 USD 

7.11%

xrp
xrp

$1.53 USD 

6.03%

dogecoin
dogecoin

$0.467565 USD 

13.92%

usd-coin
usd-coin

$0.999943 USD 

0.00%

cardano
cardano

$1.07 USD 

18.70%

tron
tron

$0.220661 USD 

10.39%

avalanche
avalanche

$42.75 USD 

10.32%

shiba-inu
shiba-inu

$0.000028 USD 

8.27%

toncoin
toncoin

$5.81 USD 

4.91%

stellar
stellar

$0.435347 USD 

48.69%

polkadot-new
polkadot-new

$8.01 USD 

29.94%

Cryptocurrency News Articles

South Africa's Energy Quandary: Mining and Green Energy's Double Whammy

May 16, 2024 at 08:05 pm

South Africa's recent announcement of a significant improvement in energy availability has been met with scepticism, with critics attributing it to electioneering rather than substantial progress. The country's transition towards clean energy, while aligned with global climate goals, has raised concerns about its impact on communities in mineral-rich areas. The high demand for critical minerals used in renewable energy technologies is leading to excessive mining, environmental degradation, and human rights abuses. Despite the principle of "common but differentiated responsibilities" in climate negotiations, mineral-rich countries like South Africa bear the burden of resource extraction for the global transition without adequate compensation or protection for their citizens.

South Africa's Energy Quandary: Mining and Green Energy's Double Whammy

South Africa's Energy Crisis and the Double Whammy of Mining and the Green Revolution

Amidst the ongoing energy crisis in South Africa, the country's electricity minister, Sputla Kgosientso, recently announced a significant improvement in the Energy Availability Factor (EAF), reaching 70.8% since 2021. However, this sudden boost has encountered skepticism from analysts and critics, who question whether it is merely an electioneering tactic by the ruling African National Congress (ANC).

The skepticism stems from South Africa's commitment to the 2015 Paris Climate Change Agreement, which advocates for a low-carbon world and the elimination of fossil fuels like coal. However, the push for a 'green revolution' often overlooks the double burden faced by countries like South Africa.

While being pressured to abandon coal in favor of renewable energy, these countries also bear the responsibility of supplying critical minerals, known as energy transition minerals and metals (ETMs), which are essential for achieving a just energy transition. This double whammy is exemplified by the 2012 Marikana miners' killings and the rampant power outages in South Africa.

This article aims to shed light on the challenges faced by communities in South Africa's platinum belt and Kalahari region, which are heavily impacted by mineral extraction. It critiques the international principle of 'common but differentiated responsibilities' for failing to protect mineral-rich countries like South Africa in the global pursuit of green energy.

The mining of critical minerals is a crucial component of a just energy transition. Forecasts indicate that ETMs are in high demand across various energy transition sectors, including transmission, distribution, electric vehicles, renewables, and energy storage. However, estimates of the volume of mineral resources required for global energy infrastructure changes vary widely.

Factors such as technological advancements, policy decisions, and the stringency of future climate policies all contribute to the uncertainty surrounding ETM demand. The International Energy Agency (IEA) emphasizes that the most significant factor influencing demand variability is the uncertainty surrounding climate policies.

The energy transition is expected to significantly increase demand for at least thirty ETMs, with lithium, graphite, cobalt, and nickel experiencing the fastest growth. Essential metals like copper and iron will also see a surge in demand due to their extensive use in power generation and transportation. Electric vehicles and hydrogen technology further drive the demand for various ETMs, including platinum-group metals.

While the Just Energy Transition (JET) is often hailed as a solution to the climate crisis, evidence points to a darker side within the green industry's supply chain. The Amsterdam-based Centre for Research on Multinational Corporations (SOMO) links the growing European demand for manganese in energy transition and steel production to human rights abuses by manganese mining companies in South Africa.

The International Institute for Sustainable Development (IISD) refers to ETMs as "green conflict minerals," arguing that they can fuel conflicts in the transition to a low-carbon economy, particularly in countries with weak governance and political instability, where mineral extraction can lead to violence, conflict, and human rights violations.

Amidst the global transition towards sustainable energy sources, significant pressure is exerted on resource-rich countries in the Global South, including South Africa. This focus on sustainability in the Global North intensifies the demand for steel, a resource-intensive material crucial for infrastructure development in the transition to a greener economy.

Renewable energy sources like wind, solar, and hydroelectric power heavily rely on steel for their construction. Manganese, often mined under conditions detrimental to human rights and the environment, is distributed globally, primarily for steel production. One-third of European manganese imports originate directly from South Africa, with a larger share entering the EU after refinement in China and Norway.

The Netherlands, the world's fourth-largest importer of ferromanganese, is a major consumer of manganese, which accounts for ninety percent of global manganese demand. The increased demand for manganese in Europe, driven by the energy transition and steel production, is directly linked to adverse human rights impacts.

Renewable energy sources like wind turbines, batteries for electric vehicles, and energy storage are driving up the demand for crucial minerals in low- and middle-income countries such as Zambia, the Democratic Republic of the Congo, and South Africa. However, SOMO research reveals that mining in these areas poses serious threats to the environment and human rights, with women and girls disproportionately affected.

Manganese and platinum, among the top thirty key minerals essential for the energy transition, are mainly mined in South Africa, highlighting the potential for negative social and environmental impacts. This is particularly evident in the supply chains of these minerals from South Africa and their utilization in renewable energy technologies.

Empirical evidence suggests that local communities, especially women in the Kalahari region (home to the world's largest manganese resources), are often excluded from decision-making processes regarding mining activities that directly affect them. Despite court rulings recognizing their right to free, prior and informed consent (FPIC), this right is often disregarded.

Furthermore, communities near mines face health risks like asbestosis and respiratory diseases and suffer from water scarcity and pollution, violating their right to a healthy environment and contravening existing international business and human rights instruments.

While diligence laws in Europe, such as the Modern Slavery Act (UK) and the EU's Corporate Sustainability Due Diligence Directive (CS3D), purport to address these issues, they lack universal support due to criticisms of their 'neo-colonial' nature. Additionally, the absence of a binding treaty to hold companies accountable for human rights abuses creates a legal gap in the international system.

As a result, a governance mechanism mirroring the Kimberley Process (KP) for critical minerals accreditation has been proposed. However, in a world already laden with international norms and fierce capitalism, the realization of such a mechanism remains uncertain.

The killing of miners in Marikana in 2012 and the widespread load-shedding in South Africa are interconnected consequences of this paradox. The pressure to provide resources for the global green transition strains South Africa's energy grid and leads to labor unrest and instability. The Marikana killings served as a warning to oppressed black workers not to assert their labor rights, casting a shadow over the 'green revolution.'

Climate negotiations must consider the double burden faced by mineral-rich countries, who suffer both from the negative impacts of transitioning away from traditional energy sources and the pressure to meet increasing global demand for minerals. The principle of 'common but differentiated responsibilities' acknowledges that all countries share responsibility for addressing global environmental issues, but their obligations differ based on historical contributions and current capacities.

Future climate negotiations should explore ways to compensate countries like South Africa for the sacrifices they make in the global pursuit of decarbonization. This agenda must target governments of ETM-rich countries, governments in countries experiencing increased demand for manganese due to the transition to low-carbon technologies, mining companies, manufacturers of low-carbon technologies containing ETMs, end users of these technologies, and financial institutions with ties to ETM mining or usage.

South Africa's green transition is not merely an energy or technological challenge but also a social, economic, and environmental one. Global players cannot continue to ignore the double burden faced by mineral-rich countries in the name of a green revolution. A truly just transition must prioritize the rights and well-being of those most impacted, ensuring that the quest for a sustainable future does not perpetuate injustice.

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Nov 23, 2024