The recent 26th edition of the
Conference of the Parties (COP26) brought about renewed vigour to phase down
carbon dioxide emissions across the globe. Still, to get there, the mining
industry will face unprecedented demand for certain metals key to facilitating
the energy transition.
Bank of America recently weighed in on the outlook
for essential commodities in 2022, concluding that ‘decarbonization’ is the
critical driver for metals important for future technologies (MIFTs).
“The question as to
whether this was a ‘good’ or ‘bad’ COP depends on prior expectations over what
the outcome should be on a range of contentious topics, with leaders from
nearly 200 countries tackling several outstanding issues, including the current
status of nationally determined contributions (NDCs) and the rules governing
international carbon markets and climate financing,” said the bank’s UK-based
commodity strategist Michael Widmer during a webcast.
While Glasgow was certainly not the ultimate stage in
the journey to combat climate change, according to Widmer, it signalled “more
the ‘beginning of the end,'” as UK Prime Minister Boris Johnson outlined during the
opening ceremony. “All in, we believe that COP26 kept the goal alive of
limiting the temperature increase to 1.5 degrees Celsius,” said Widmer.