+Just Energy Transition

Project name

Currently, CEDHA is primarily engaged in the following project:

'Promoting a fair energy transition focused on lithium, with specific emphasis on host communities, local value added, and the fight against climate change.'

Context

The global climate emergency refers to the alarming and urgent situation we face regarding climate change. It is recognized that human activity, particularly the burning of fossil fuels and deforestation, is increasing greenhouse gas (GHG) concentrations in the atmosphere, (Co2 and short-lived super pollutants), which is causing unprecedented global warming in human history.

The climate emergency manifests through phenomena such as rising average temperatures, melting polar ice caps and glaciers, sea-level rise, extreme weather events such as droughts, floods, and stronger storms, as well as biodiversity loss and ecosystem disruption, leading to serious socio-environmental and economic impacts.

Energy transition is a process aimed at changing how energy is sourced and used, with the goal of reducing greenhouse gas emissions and mitigating climate change. This transition involves shifting from traditional and highly polluting energy sources, such as fossil fuels, to renewable and cleaner sources like solar, wind, and electric power.

Under climate change, energy transition is particularly crucial because human activities, especially fossil fuel combustion for energy generation and transportation, are major contributors to global warming. Intensive fossil fuel use increases carbon dioxide (CO2) concentrations in the atmosphere, causing the greenhouse effect and contributing to climate change.

The Intergovernmental Panel on Climate Change (IPCC) states that to limit global warming to 1.5 degrees Celsius above pre-industrial levels, net CO2 emissions must be reduced by at least 45% by 2030 compared to 2010 levels, and reach net zero by 2050.

Energy transition aims to reduce fossil fuels dependence and to promote renewable and sustainable energy sources. This involves investing in clean technologies such as solar panels, wind turbines, and energy storage systems, as well as promoting energy efficiency in industrial, transportation, and residential sectors.

Through this transition, the goal is to reduce greenhouse gas emissions, decrease air pollution, and improve people's quality of life by reducing dependence on non-renewable resources and promoting cleaner and more sustainable energy. Additionally, energy transition can also generate new jobs and economic opportunities in renewable energy and energy efficiency sectors.

It is clear that energy transition is a fundamental process in combating climate change, as it seeks to change how energy is produced and consumed by promoting renewable and sustainable sources.

In this context, lithium plays a crucial role in energy transition due to its use in rechargeable lithium-ion batteries, widely used in renewable energy and electric mobility industries. These batteries are essential for storing and supplying electricity generated from intermittent renewable sources such as solar and wind energy, stabilizing energy flow and supporting the electric vehicle industry.

Demand for lithium has grown significantly in recent years due to increased electric vehicle production and large-scale energy storage development. The transition to a cleaner and more sustainable energy matrix requires more lithium batteries to drive renewable energy use and electrification of transportation.

Lithium is essential in manufacturing high-capacity batteries, enabling efficient energy storage and release. The high energy density and long lifespan of lithium batteries make them a preferred choice for applications in electric vehicles and large-scale energy storage systems.

However, it is important to note that extracting and producing lithium also pose social and environmental challenges. It is crucial to ensure that lithium extraction operations and the entire value chain are conducted responsibly, adhering to environmental standards and achieving social inclusion.

Given these considerations, it is evident that lithium plays a key role in energy transition due to its use in lithium-ion batteries to store energy generated from renewable sources and to boost the growth of electric mobility. It is essential to consider environmental aspects by adopting best extraction practices and social aspects by providing training, jobs, and local economic development opportunities.

It is worth noting the geographical scope of the project's application. According to 2018 data from the United States Geological Survey (USGS), approximately 67% of proven lithium reserves, and nearly half of the global supply, are concentrated in the Lithium Triangle (Argentina, Bolivia, and Chile). Argentina holds 1/7 of lithium reserves, ranking fourth globally, and contributes nearly 1/6 of total production, placing it third in the world rankings. Argentina is the country with the largest 'lithium resources' of potential economic value, according to the USGS.

Therefore, it is highly important and timely to promote a productive economy where local added value is generated in the lithium exploitation and marketing scheme using the best technologies, while ensuring it is conducted with principles of social and environmental justice. This involves providing training, employment, and infrastructure in lithium mining provinces and ensuring lithium has local added value through refining, battery manufacturing, and boosting electric mobility among other possible uses of this mineral.

It is also important to consider the existence of current international standards conditioning the acquisition of products to the fulfillment of guidelines linked to the environment and human rights. Compliance with these standards will be crucial to maintain market access. Key standards include the US Inflection Reduction Act (IRA), effective from March 1, 2023, which aims to reduce GHG emissions in sectors such as electricity, transportation, industrial manufacturing, buildings, and agriculture. From 2024, exporting lithium as a raw material or active product to the US will require compliance with the guidelines set by this act. Another significant regulation comes from Europe, known as Directive 2006/66/EC of the European Parliament and of the Council of September 6, 2006, concerning batteries and accumulators and their waste, establishing requirements for manufacturing, marketing, and proper disposal of batteries and accumulators to minimize environmental impact and promote recycling. Argentina, one of the world's leading lithium-exporting countries, must maintain high social and environmental standards to maintain and increase demand for lithium and its value-added products.

CEDHA's experience is that sustainable mining is a complex and multidimensional task, involving not only economic and technological aspects but also social and environmental factors. International trends show that commercial relations and businesses will only have a future if they are based on principles that involve these aspects.

At CEDHA, our aim is to promote lithium production and its added value as a key way to fight climate change while enhancing the life quality of the communities through a green economy, sustainable jobs and minimal environmental impact.

This vision should promote an intervention strategy where communities are strengthened as part of the production process, local science and technologies are developed, and governments, industry, and all key sectors are involved in achieving this goal.

CEDHA's challenge is to help establish the groundwork for a long-term effort by all sectors of the economy.

Intervention Strategy

CEDHA Foundation works in various fields contributing to a fair energy transition process with a special focus on communities and lithium in Argentina.

Goals

Strengthening Host Communities

The objective is linking lithium industry with local communities by intervening in the following areas:

Job creation and local development: Energy transition must generate local employment opportunities for communities affected by the lithium industry. This may include creating jobs in sustainable lithium extraction, battery manufacturing, and installation of renewable energy infrastructure. We also explore the possibility that for host communities where the lithium mining industry is developed can enhance their traditional jobs (agriculture, livestock, gastronomy, tourism, etc.) to make them autonomous and economically sustainable.

Fair compensation: To improve the quality of life of the communities living in the lithium mining area by providing infrastructure investments and local public and private services.

Boosting the lithium value chain

The objective is to promote the creation of a production and value-added chain that benefits local communities and different productive sectors linked to this industry. In addition to mineral refining, this includes encouraging battery production, electric mobility, technology, and the entire lithium value chain, generating economic diversification, jobs, and local economic development.

Promoting research and development of lithium technologies

The objective is to promote research, development, and training in new technologies related to lithium, such as more efficient and sustainable extraction methods, advanced lithium batteries with higher energy storage capacity, and electric vehicles suitable for public transportation and internal mobility in cities.

Supporting responsible and sustainable extraction

The objective is to promote responsible lithium extraction, ensuring compliance with environmental and social standards, avoiding resource overexploitation, and minimizing negative impacts on local communities.

Generating synergy and alliances with different key actors

The project seeks to collaborate with various key actors to achieve a just energy transition. These include government, local communities, companies, academia, and unions. The goal is to establish alliances that promote sustainability in lithium extraction and production, strengthen local communities, train workers, and develop innovative and sustainable solutions. Working with these actors is crucial to achieving a successful transition towards a greener and more equitable economy.

To sum up, the Fair Energy Transition project, focused on lithium as a climate mineral, seeks to promote more sustainable and equitable energy production and consumption. It prioritizes local added value and integrates host communities, considering gender and youth perspectives. It is essential to generate synergies with various key actors, such as governments, local communities, academia, and companies, to ensure a just and sustainable transition. This project boosts the lithium value chain, promoting sustainable mineral extraction and battery production, electric mobility, and technologies that bring local benefits such as employment and economic development. Eventually, it aims to balance energy production and consumption through renewable sources, with a focus on social and environmental responsibility, harnessing lithium as a climate mineral to effectively combat climate change.