@Risk

Several materials used in the manufacture of clean energy technologies such as wind turbines, electric vehicles, solar cells and energy-efficient lighting are at risk of supply disruptions in the short term, according to a new report released by the US Department of Energy (DOE).

The 2011 Critical Materials Strategy is DOE’s second report on this topic and provides an update to last year’s analysis. After its analysis, the DOE has concluded that:

• Supply challenges for five rare earth elements (REEs) (dysprosium, neodymium, terbium, europium and yttrium) may affect clean energy technology deployment in the years ahead.
• The risks of supply disruptions in the short term will generally decrease in the medium and long term.

The report also includes a discussion of DOE’s strategy to address these critical materials challenges. DOES says its strategy rests on three pillars: (more…)

Scientists at the Joint Research Centre (JRC), the European Commission’s in-house science service, have identified five metals that are both essential for manufacturing low-carbon technologies and at high risk of shortage.

These five metals are: neodymium, dysprosium, indium, tellurium and gallium.

According to the report, titled Critical Metals in Strategic Energy Technologies, the risk of shortage stems from:

• Europe’s dependency on imports (as in the US, virtually the entire European supply of these metals comes from China),
• increasing global demand,
• supply concentration and
• geopolitical issues.

Furthermore, these metals are not easily recyclable or substitutable. (more…)

In the second annual Carbon Disclosure Project (CDP) Water Disclosure Global Report released last week, more than half (59 percent) of the companies surveyed said they are exposed to water-related risks such as flooding, scarcity and reputational damage.

What’s more, almost four in 10 (38 percent) already have experienced water-related business impacts, including disruption to operations from severe weather events (e.g., flooding) and water shortages.

And companies described most of their water risks as near- term. Nearly two-thirds (66 percent) of risks in the supply chain and 64 percent of risks in direct operations were identified as occurring between now and 2016.

But even so, the report also found that only 57 percent of the 190 publicly listed organizations that participated in the survey implement board-level oversight of water policies, strategies or plans. By comparison, a report released by CDP in September 2011 showed that 94 percent of Global 500 companies report board-level oversight of climate change.

Why the gap? While it’s encouraging to see that awareness about water risks is on the rise, it’s also clear that companies need to strengthen their oversight of water-related issues –particularly in the supply chain. The CDP report revealed that more than one-third of companies (38 percent) are unaware of whether they are exposed to water risk in their supply chains. In the Consumer Discretionary sector, which is dominated by industries that are particularly exposed to supply chain risk (e.g., retailers, hotels, resorts, and automobile manufacturers), that percentage rose to 41 percent.

The report also found that: (more…)

Last week, the world population reached 7 billion. Almost concurrently, NRG Expert released new forecasts which show that, given the current rate of population growth, global electricity supply is not likely to keep pace with future energy needs.

According to the new study, the energy tipping point is only about 20 years from now. NRG Expert predicts that 2032 will be the pivotal year where global electricity demand is likely to surpass supply based on global generation.

Of course, population growth isn’t the only factor that impacts the sustainability of the world’s energy supply. As NRG Expert points out, depleted natural resources and the phasing out of nuclear power in developed and developing countries also play a role.

A new report from Capgemini seems to draw a similar conclusion. The 13^th edition of the European Energy Markets Observatory (EEMO) found that energy consumption growth in developing countries, the Fukushima accident and the slowing down of the needed investments made by utilities all will have negative consequences on the security of energy supply and greenhouse gas emissions in Europe. (more…)

As part of its continued efforts to help the Democratic Republic of Congo break the link between the minerals trade and armed groups, the US government will formally launch the Public-Private Alliance for Responsible Minerals Trade (PPA) next month in Washington, DC.

According to a fact sheet, the PPA aims to combine the financial and technical resources of governments, companies, trade associations, civil society, and the International Conference on the Great Lakes Region (ICGLR) in support of three goals: (more…)