Our Senior Mining Analyst, Alex Sutton, discusses the plan for net-zero emissions by 2050 and what it means for the Australian mining sector
In late October the Nationals Party threw their support behind the federal government's plan for net-zero emissions by 2050, at this stage nuclear energy is not part of the plan however it is not completely ruled out. The key to a net-zero emissions world is to change the behaviour of the global population and essentially make living in a green world more accessible to the everyday citizen.
Part of these behavioural changes are starting to be implemented as approximately 2.5% of apartment buildings these days are being retrofitted in order to become more sustainable. This may seem like a small amount but as we progress towards 2050 this number accumulates and this creates a demand for raw materials. In addition, demand for low emission fuels increases over time and these two factors could put the Australian mining industry in a winning position. This occurs because the global population will be more reliant on a handful of metals for their transport. The two standout metals are lithium and copper however nickel, cobalt, aluminum and steel are not far behind. One thing that Australia has no shortage of is Iron Ore the key steel-making ingredient but we have vast amounts of the other metals too. Demand for electric vehicles is also increasing as car hire company, Hertz, has recently placed an order for 100,000 electric vehicles with Tesla and the mining industry will have to supply the raw materials.
One factor that puts Australian mining ahead of other jurisdictions is that it is highly regulated by the state governments ensuring that best practices take place with special regard to Health, Safety and Environment. This helps ensure that people are making an ethical mining investment and furthermore with the mining industry supplying the key metals for a green energy future you may be also making an environmentally friendly investment by backing an Australian Mining company.
In addition, there are also opportunities to invest in the hydrogen energy sector in Australia with companies like Infinite Blue Energy and Sweetman Renewables tapping into the industry.
Furthermore, in order to capitalise on the opportunity to invest in sustainable metals used in the green energy sector, there are companies like Locksley Resources and Koch Metals providing this opportunity.
Locksley Resources and Koch Metals
Where to from here?
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