CLIMATE change is fueling the electric vehicle revolution in countries like the Philippines, but the United Nations Conference on Trade and Development (Unctad) said firms that will mine battery metals must observe sustainable mining standards.
In the 2019 edition of its Commodities and Development Report, titled “Commodity Dependence, Climate Change and the Paris Agreement,” Unctad also said climate change has the potential to cut the productivity of the local aquaculture sector.
“The climate crisis poses an existential threat to commodity-dependent developing countries and will result in the collapse of some economies if decisive action is not taken now,” Unctad Secretary-General Mukhisa Kituyi said in a statement.
“Now more than ever before, these countries need to assess their diversification potential and reduce their commodity dependence, which for decades has kept them exposed to volatile markets and climate change,” Kituyi added.
In the report, Unctad noted that climate change is fueling an electric vehicle revolution. This is an opportunity for developing countries with vast reserves of battery metals, such as the Philippines.
Unctad said electric vehicle sales have increased dramatically to 2 million in 2018, from only a few thousand in 2010. Sales are projected to jump to 10 million units in 2025, 28 million in 2030, and 56 million in 2040.
This bodes well for developing countries with “significant reserves of battery metals.” These countries include the Philippines, which is rich in cobalt, along with Cuba, Madagascar and Zambia.
“This increases the urgency of both strengthening the environmental, social and ethical standards of their mining operations and ensuring local value retention to support sustainable development in mining communities,” the report read.
“[These countries] must find ways to align potential ramifications of the rapidly emerging global electric vehicle market with their national efforts toward sustainable development,” it added.
Unctad also said climate change, which will increase the competition for water and change the water cycle, will negatively affect fisheries and aquaculture industries.
In the short term, the report indicated that climate change may slash aquaculture productivity. Aside from the loss of infrastructure caused by extreme weather events, the sector will also be affected by increased risks of diseases and the spread of toxic algae and parasites.
In the long term, the impact on countries could include reduced access to freshwater, wild seeds, feeds from marine and terrestrial sources, and decreased productivity due to ocean acidification, eutrophication and other perturbations.
“The report underscores that the high risk faced by commodity-dependent developing countries reinforces their need to adapt, diversify and modernize their economies. They must also adapt to the effects of the climate response measures undertaken by other countries, which are expected to reduce the demand for some key commodities on which they depend,” Unctad said.
The report stressed that there’s a need to address these concerns and meet the goal of limiting global temperature rise to 1.5°C above preindustrial levels as indicated in the Paris Agreement.
Unctad said based on the findings of the report, the total cost of implementation of climate action plans for 80 developing countries that have specified their financing needs is estimated at $5.4 trillion.
In addition, the report states that greening fiscal policies can help to ensure taxes, subsidies and similar policy instruments contribute to the implementation of climate action plans and the achievement of the sustainable development goals.