A recent report by Fitch Ratings assessing the risks of climate change to various sectors featured two graphs that vividly illustrates just how central metals and mining is to decarbonization.
The latest UN Forecast Policy Scenario anticipates a substantial increase in electricity generation from renewables – comprising hydro, wind and solar – across all regions.
Renewables are set to be the largest source of power globally by 2050, at 73% of the total compared to 25% in 2020. Wind and solar will increase their share of global renewables generation to 85% by 2050 from 34% in 2020.
Couple this with the metal intensity of renewable energy resources and it is clear that even if the installation of renewable energy capacity falls far short of expectations, the impact on metals and mining would be immense.