Green Transition May Be Threatened By Export Restrictions‍

OECD research shows that there has been a sharp increase in export restrictions on raw materials that are essential to green technologies, including raw materials from China and India, that has the potential to have a significant impact on the global economy, including making it harder to meet climate goals. 

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There has been an increase in the number of restrictions imposed by governments in the last decade, most of which are taxes, but there are also quantitative limits to protect exports, the OECD says, and approximately 10% of the value of exports is now subject to at least one measure.

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There is a growing difficulty in exporting critical raw materials

The top six countries in terms of new curbs in the last decade are China, India, Argentina, Russia, Vietnam, and Kazakhstan, whose booming economies are also involved in many of the OECD's member countries as suppliers of cotton and other textiles, according to the organization. 

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Having conducted research, Przemyslaw Kowalski and Clarisse Legendre have found that export restrictions have a significant impact on international raw material markets, affecting availability and prices. It is evident from the data provided that this situation warrants careful examination in light of the OECD's dependence on relevant imports as described in this paper.

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Production of raw materials that are critical to human survival is dominated by just a few countries

To meet expected demands for the green transition that are expected to increase by four times to six times over the next two decades, the OECD also said significant increases in production and trade will need to be made in the material sector. 

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Among the minerals that have experienced the largest increase in production in recent years, it is lithium, rare earths, chromium, arsenic, cobalt, titanium, selenium, and magnesium. 

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The OECD said that despite an increase in production and trade over the last decade of most raw materials, the rate of growth has not kept up with projections for demand for the metals and minerals that are required to transform the global economy."