Original Source Date: October 29, 2024
Impact Highlights
| Annual ROI | Time Horizon | Confidence |
|---|---|---|
| 10.0% | 10.0 years | 1 - Very Strong |
| Activities | Outcomes | Indicators |
|---|---|---|
| Environment | Children, Opportunity, Rights, Safety / Support | Child Labor, Equality, GDP, Green Space, Job Availability, Labor rights, Occupational fatalities, Occupational injuries, Unemployment |
| Geography | Demographics |
|---|---|
| United States | All |
Article Details
The global transition to green energy has accelerated rapidly, increasing the demand for critical materials like rare earth elements (REEs), lithium, nickel, silicon, and cobalt. While these materials power wind turbines, solar panels, and electric vehicles (EVs), their mining and processing have significant social impacts. This study presents a quantitative assessment of these impacts, addressing employment rates, labor income share, gender equality, work safety, informal employment, and child labor—key indicators aligned with Sustainable Development Goals (SDGs) 1, 5, and 8.
Key Findings:
- Employment & Income Opportunities: Aluminum production for EVs, wind turbines, and solar panels generates the highest employment rates and labor income growth, positively contributing to SDG 8 (decent work and economic growth).
- Social Risks: The extraction of cobalt, lithium, silicon, and zinc poses high social risks, particularly in regions like the Democratic Republic of Congo (DRC) and Zimbabwe, where child labor and informal employment are prevalent.
- Gender Equality: Women’s participation in green energy-related mining is low (10-20%), despite global efforts to improve gender equity in labor markets.
- Work Safety Concerns: Occupational accidents in mining and energy production are projected to increase 1.8–2.2 times by 2030 due to rising demand for green technologies.
- Informal Employment & Child Labor: Without intervention, informal employment in mining sectors will rise by 1.7 times by 2030, and child labor cases may nearly double.
Return on Investment (ROI) & Social Impact Indicators:
- ROI in Green Energy Supply Chains: Investments in sustainable mining practices can enhance economic growth while minimizing social risks. Countries investing in socially responsible sourcing may benefit from higher labor productivity and community development.
- Social Impact Indicators: Tracking employment growth, fair wages, and social conditions in supply chains is essential for ensuring an equitable energy transition.
Key Takeaways for Policymakers & Investors:
To achieve a just transition to renewable energy, governments and businesses must:
- Adopt responsible sourcing policies for critical materials.
- Improve labor protections, particularly in cobalt and lithium supply chains.
- Encourage gender inclusivity in mining and energy sectors.
- Enforce child labor bans and promote ethical mining standards.
- Invest in local economies where mining activities occur, ensuring sustainable development.
The study highlights the complex trade-offs in the green energy revolution—balancing economic growth, environmental sustainability, and social justice.
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