This year the impact of climate change has been more visible than ever before. Temperatures in the UK reached an unheard-of 40+ degrees C; rivers in Germany and China have run dry, creating problems for transport and hydro-electric power creation; one-third of Pakistan is under flood-water. This feeling of crisis has been compounded by Russia’s invasion of Ukraine and the consequent ever-rising gas prices.  These factors have combined to focus international political and public attention on the urgency of the energy transition. 

The success of the energy transition will depend on access to significantly increased quantities of rare earth metals and minerals, which are central to the production of permanent magnets used in electric vehicles (EVs) and wind turbines. According to the IEA, meeting current energy policies will require a doubling of current levels of mineral extraction and refining by 2040.  Reaching the Paris target of 1.5 degrees C will require a quadrupling by 2040.  Attaining Net Zero by 2050 requires a six-fold increase by 2040.

Can this be done?

Proven reserves of rare earth elements (REE) are assessed to be sufficient (just) to meet the needs of the energy transition. The question is therefore whether a solution can be found to the inefficiency of their extraction and use; and whether mining and processing activities across the value and supply chains can be expanded quickly enough to meet this projected growth.

Continue Reading Elemental Risk: the Threat to Electric Vehicles

In a series of prior blog posts, we previously highlighted the historic implications of the Inflation Reduction Act (IRA) for the U.S.’s international climate commitments, as well as for private companies navigating the energy transition.  Shortly after our series published, the Senate passed the IRA on Sunday August 7th with only minor modifications to the bill’s $369 billion in climate and clean energy spending.  Today, the House passed the IRA without any further changes, and soon hereafter President Biden is expected to sign it into law. 

However, this is only the beginning of the road; the IRA will have sweeping implications beyond the four corners of its pages.  In the coming months and years, we expect to see intense jockeying over agency rulemakings that will shape the IRA’s implementation, as well as determine its ultimate success as an energy policy.  

I. Congressional Permitting Reform

As an initial matter, it seems Congress has not finished its work revamping the nation’s climate and energy laws.  As part of his agreement to support the IRA, Senator Joe Manchin (D-WV) announced that “President Biden, Leader Schumer and Speaker Pelosi have committed to advancing a suite of commonsense permitting reforms this fall that will ensure all energy infrastructure, from transmission to pipelines and export facilities, can be efficiently and responsibly built to deliver energy safely around the country and to our allies.”  While the exact contours of this legislation are not currently known, Senator Manchin’s office recently released a legislative framework, which includes proposals to, among other things:

Continue Reading House Passes Inflation Reduction Act, Marks a New Era for Climate Policy