Her Excellency, Ms. Teresa Ribera, Executive Vice President from the EU Commission
Her Excellency, Ms. Bärbel Kofler, Parliamentary State Secretary to the German Federal Ministry for Economic Cooperation and Development
Excellencies and Distinguished Guests
Ladies and Gentlemen:

All Protocols Observed:

1. I greet you all on behalf of the African Union Commission and I am very pleased to be part of this important event on how we can enhance our cooperation on the energy transition, particularly green minerals for our mutual benefits.

2. First, I would like to thank the Government of the Federal Democratic Republic of Ethiopia for hosting the second Africa Climate Summit (ACS) in this beautiful city of Addis Ababa.

3. I also thank the European Union and the Government of Germany for their continued collaborations and support to the African Union Commission. I also wish to recognize the efforts of the Africa-EU Energy Partnership (AEEP) and the Africa-Europe Foundation in organizing this event.

4. The global agenda for energy transition is already being accelerated with calls from global leaders to triple renewable energy capacity and double the rate of energy efficiency. Renewable energy has already surpassed 30% of the global electricity mix while several sources estimate renewables will account for between 50 – 85% of the global power supply mix by 2050. According to the US Energy Information Administration (EIA), light-duty electric vehicles could account for 31% of the global fleet by 2050. These developments provide a huge boost towards the achievement of the global climate goals.

5. One of the major implications of this development is the huge pressure and demand for critical minerals, which are necessary to manufacture key energy transition components including solar panels, efficient grid systems, and batteries for storage and vehicles. The demand for critical minerals such as lithium, nickel, cobalt, graphite, copper, aluminum, and rare earth elements have soared over the last decade. The use of critical minerals for new energy technologies has increased by more than 50% since 2010. According to the World Bank, the production of minerals, such as graphite, lithium and cobalt, could increase by nearly 500% by 2050, to meet the growing demand for clean energy technologies.

6. The growing demand for these critical minerals could lock the global energy system in a new frontier with huge environmental and economic costs. Unsustainable mining of critical minerals, which are rare and finite, could cause irreversible land degradation in local communities. Despite the increasing demand and production of these minerals, the costs are currently rising, which could add significant costs to the energy transition process. For example, the costs of lithium increased by over seven-fold in the last five years.

7. The types of technologies used in exploration, mining, processing and conversion will be crucial in enhancing efficiencies and reducing costs and wastes along the value chain from the upstream all the way downstream. Utilizing technologies for extracting critical and rare metals such as copper, nickel and cobalt from mining waste will relieve the pressure of exploring new sites for mining critical minerals. Countries such as South Africa and Sweden are already utilizing mine waste and by-products from coal discards to extract rare earth metals. There is also a need to explore alternative technologies and substitute minerals and materials to complement the role of critical minerals in the energy transition.

8. The crucial roles of critical minerals in the energy transition also needs to be backed-up by a circular economy where reuse and recycling of minerals, materials and equipment could meet the increasing demand for clean energy systems. It is important to invest in purpose-built facilities and technologies to facilitate the collection, recovery and recycling of critical minerals and equipment. According to Deloitte, electric vehicles will provide 235,000 tonnes of battery material waste by 2040, and solar panel cumulative waste will reach 30,000 tonnes by 2030 in the UK, providing opportunities for establishing a circular economy for green technologies and infrastructure.

Excellencies and Distinguished Guests

9. Within the context of Africa, the continent boasts huge reserves of green minerals and countries such as Congo DRC are already playing crucial roles in the global supply chain. For example, 70% of global cobalt production comes from the Congo DRC, and over 80% of the world’s known platinum and manganese resources are in South Africa and Zimbabwe.

10. While Africa’s significant minerals can serve as a platform for further accelerating the transition to clean energy systems, care must be taken to ensure opportunities are maximised while also mitigating the negative consequences from the extraction of critical minerals. The supply chain needs to be modelled for effective beneficiation in terms of creating jobs and income through local manufacturing. This highlights the need for Africa to be manufacturing the end-use technologies rather than supplying raw materials to the global supply chain, which will create significant jobs and also localize the technologies.

11. Policies and frameworks also need to be set-up to ensure the utilization of sustainable and highly efficient mining practices for the benefit of local communities and environmental protection. The significant health impacts from unsustainable mining practices also need to be addressed. Mining communities in Africa often bear the brunt of indiscriminate mining practices, which pollute local water systems and soil, leading to serious health impacts.

Excellencies and Distinguished Guests

12. For both Africa and Europe, a green energy future is at the top of the political and development agenda for different but mutual reasons. For Europe, a transition to green energy will sustain economic growth while at the same time meeting climate change mitigation objectives. For Africa, green energy services provide the best opportunities for addressing a wide range of development issues including accelerating economic growth and transformation, poverty alleviation, rural development, job creation as well as avoiding future carbon emissions.

13. Over the last two decades, Africa and Europe have had several successful collaborations and partnerships in key areas in the provision of green energy solutions including mobilization of financial resources, technical assistance as well as the development and harmonisation of policy and regulatory frameworks.

14. At the African Union Commission (AUC), we are pleased with our collaborations and partnerships with the European Union in implementing several of our key programmes aimed at promoting green energy. These programmes including: (1) the Programme for Infrastructure Development in Africa; (2) the Africa-EU Energy Partnership (AEEP); (3) the Geothermal Risk Mitigation Facility (GRMF); (4) the African Single Electricity Market; and (5) the Continental Power System Masterplan (CMP).

15. While the collaborations and partnerships have been successful in the development of policies, strategies and action plans, there is a need to significantly strengthen cooperation between the two continents to ensure effective implementation of concrete projects. Specifically on the issue of energy transition minerals, the areas to strengthen collaboration include:
• Increasing investments and the mobilisation of private sector financing for sustainable mining and manufacturing on the continent.
• Ensuring that investments and projects benefit vulnerable communities and areas, especially promoting business and job opportunities for women and youth.
• Technology cooperation and technology transfer of crucial that will promote sustainable production and utilisation of energy transition minerals.
• Targeted capacity building and sharing of experiences.

16. In conclusion, green minerals provide significant opportunities for clean energy transition and jobs creation but there is a need for both continents to develop and implement appropriate policies and frameworks while also mobilizing the necessary financing and utilization of best-available technologies to maximize the benefits.

17. I look forward to engaging discussions on this important topic and I thank you all for your kind attention.