ENERGY TRANSITION DOES NOT MEAN UNCONTROLLED MINING

Mining to obtain resources for clean technologies can be reversible in the damage to the environment in the speed of extraction, initially destroying ecosystems in an uncontrolled manner and at an uncontrolled speed.

But even more so, we must simultaneously focus on the uses of the resources needed to obtain the product for example batteries that will be necessary for all renewable products.

LET’S UNDERSTAND SOMETHING, BATTERIES ONLY STORE

And we must find a way to use our technological devices (all of them) in times of high natural generation so as not to depend on excessive storage and much less on the backup of the fossil grid.

BATTERIES DO NOT CREATE ELECTRICITY

But they simply store electricity produced elsewhere, especially through coal, uranium, natural power plants or diesel-powered generators.

So the claim that an electric car is a zero-emission vehicle is not true at all, because the electricity produced comes from power plants and many of them burn coal or gas.

So today 40% of electric cars on the road are carbon-based.

But that’s not all.

BATTERIES POLLUTE IN THE EXTRACTION OF THEIR RAW MATERIALS

Those who are excited about electric cars and a green revolution should take a closer look at batteries, but also wind turbines and solar panels.

A typical electric car battery weighs 450 kg, about the size of a suitcase.

It contains 11 kg of lithium, 27 kg of nickel, 20 kg of manganese, 14 kg of cobalt, 90 kg of copper and 180 kg of aluminium, steel and plastic.

There are more than 6,000 individual lithium-ion cells inside.

To make each BEV battery, you’ll need to process 11,000 kg of salt for lithium, 15,000 kg of ore for cobalt, 2,270 kg of resin for nickel, and 11,000 kg of copper ore.

In total, you have to dig up 225,000 kg of dirt for one battery.

SOLAR PANELS

They are one of the biggest solutions to save the planet, but if we speed up mining to get the resources; the results are a bigger problem than solar system solutions.

They require chemicals used to turn silicate into gravel used for panels.

To produce enough clean silicon, it must be treated with hydrochloric acid, sulfuric acid, fluoride, trichloroethane, and acetone.

In addition, gallium, arsenide, copper-indium-gallium diselenide, and cadmium telluride are needed, which are also highly toxic.

Silicone dust is a danger to workers and tiles cannot be recycled.

Not everything is rosy!

WIND TURBINES

In the wind sector, pollution in production is necessary, which is why we must avoid overproduction that systematically increases pollution from mineral extraction.

Wind turbines are not plus-ultra in terms of cost and environmental destruction.

 

We must be consistent and rational in their use!

Each windmill weighs 1,688 tons (the equivalent of the weight of 23 houses) and contains 1,300 tons of concrete, 295 tons of steel, 48 tons of iron, 24 tons of fiberglass and the rare earths difficult to obtain Neodymium, Praseodymium and Dysprosium.

A LOGICAL PROPOSAL

It is to work on self-generation of homes with solar panels with one-time help from the states to acquire the kits for the most vulnerable and zero-interest loans for households whose credit coefficient is positive, but also to companies subject to their consumption needs.

ELECTROMOBILITY:

Regarding electromobility, self-generation stations that are on highways and within industrial parks (they will maintain their established internal consumption).

But it has an extremely attractive aspect, which is the capitalization of the investment; through common-use charging stations, by providing services for drivers of traffic outside the parks, extending the “SELF” supply network, eliminating overload and dependence on the fossil network; exponentially reducing emissions in universal mobility, marking an almost definitive solution for this polluting factor.

 

THE E-MALL

(These self-sufficient charging stations) contain different entertainment options to understand that today waiting for the charge allows us to enjoy and that is one more possibility of freely choosing what to do with our time.

The same ones complete with gyms, gastronomy, cinemas and different entertainments, but also repair assistance or vehicle control.

IF THE LOADS ARE FROM RENEWABLE ENERGY THERE ARE NO EMISSIONS

In this way, the reduction of emissions is real, only if they are supplied by renewable energy and not by the fossil network, for this two things are required:

SELF-GENERATION IN HOMES

Something that allows the dependence on supplies for mobility not to be on the state, but on citizens; acquiring the knowledge of generation, storage, capture hours, but fundamentally the incorporation of the concept of Integral efficiency (which includes savings in all the influential parts of daily consumption). Also in industries that aim to make profits and cost savings is one of the greatest challenges of humanity.

GENERATION IN MALLS OR INDUSTRIAL PARKS

For self-supply purposes for the industry, considering those of electromobility. What is really interesting is that these units have a high capitalization by selling energy to vehicles that circulate on the roads where they are strategically located historically.

EFFICIENCY CONCEPTS

They are special for the reduction of emissions in all areas and for the rapid incorporation as collective habits in the citizenry. This improves and accelerates the energy transition together with the objectives of net zero emissions.

Zero emissions or the path to it, offer benefits of the application for Non-Refundable Contributions from international organizations for the acceleration and expansion of implementation, but also for cities or companies to reduce their emissions.

Once the reduction is established, the sale of 3 financial assets becomes a new attraction.

REDUCED NON-ISSUED SHARES

They are marketed in international markets and serve to net EMISSIONS by companies that need to lower their emissions (whether fined or for their own reasons).

It is worth clarifying that from 2025 “The Green Deal” will be a requirement to enter competitive markets such as Europe, taking into account the value of emissions per tonne of all imported products; those that do not meet current standards will be rejected or will lose their market value, having to negotiate with an alternative penalty value, losing a lot of value subject to the established chamber of commerce conditions (these being transcendental).

 

BONDS FOR COMPLIANCE OBJECTIVES

These are international bonds that are traded by the markets and their value varies depending on the monitoring of the actions and the metrics of compliance with commitments based on ESTABLISHED OBJECTIVES.

NEGOTIABLE OBLIGATIONS FOR SPECIFIC COMPLIANCE

This allows the issuance of negotiable obligations that are in high demand today due to the possibility of entering and exiting at the required time, minimizing the risks but at the same time having a great capacity for attention due to their recovery subject to the metrics, this increases the value and makes them competitive or, failing that, they lose their value if the established milestones are not met periodically.

SUMMARY:

The market has new and diverse alternatives to alleviate a crisis that affects everyone, but from the financial sector much can be done about it positively speaking. Delivering returns that allow for more actions to accelerate the transition and the incorporation of sustainable practices to be sustainable over time.

CONCLUSION:

The planet is heading towards widespread practices of compliance with emissions reduction obligations, which are demonstrating safe, visible and stable returns.

 

 

 

AUTHOR:

DIEGO BALVERDE

ECONOMIST

EUROPEAN CENTRAL BANK

&

CHIEF ECONOMIST SPECIALIST CLIMATE FINANCE

WORLD TRADE DEVELOPMENT COUNCIL