Batteries have tremendous potential: they are a key technology to achieve the Paris Agreement, can create new jobs and significant economic value, can increase energy access, and can drive a responsible and just value chain.
A report from de World Economic Forum describes an ambitious vision for the battery value chain by 2030, the most important levers for realizing batteries’ positive impact, and a set of recommendations to pivot the development of the value chain towards that vision. The report calls for immediate action to realize short- and long-term opportunities. It does not aim to be conclusive but is a foundational piece for additional analysis and consultation to identify further risks and develop implementation strategies.
The 2030 vision of the battery value chain consists of three elements:
A circular battery value chain as a major driver to meet the Paris Agreement
• Batteries are the major near-term driver to decarbonize road transportation and support the transition to a renewable power system, keeping global emissions on track to stay below the 2 °C Paris Agreement target However, to achieve this and, even further, to achieve the 1,5 °C Paris Agreement target, concerted action with other industries and technologies (e.g. hydrogen) are required as well.
• Batteries directly avoid 0,4 GtCO2 emissions in transport and contribute to enable renewables as a reliable source of energy to displace carbon-based energy production, which will avoid 2,2 GtCO2 emissions – together roughly 30% of required emission reductions in these sectors until 2030.
• The battery value chain halves its GHG intensity by 2030 at a net economic gain, reducing 0,1 Gt emissions within the battery value chain itself and putting it on track to achieving net-zero emissions in 2050.
Transformation of the economy in the value chain, creating new jobs and additional economic value
• The battery value chain sustains 10 million additional safe, fair and good-quality jobs globally in 2030, of which more than 50% are in emerging economies.
• Approximately $150 billion of economic value are realized in 2030 by lowering battery costs, leading to 35% higher battery demand versus the 2030 base case and faster deployment of batteries, hence multiplying their benefits.
A value chain safeguarding human rights, supporting a just energy transition and fostering economic development, in line with the UN Sustainable Development Goals (SDGs)
• Batteries, in battery-solar systems and as part of microgrids and off-grid solutions, enable affordable energy access for around 600 million people, reducing the gap of households without electricity by 70%.
• The battery value chain has safe working conditions, avoids environmental impact and fosters transparency and anti-corruption practices.
• Battery value chain stakeholders demonstrate respect for human rights by taking decisive steps towards eliminating child and forced labour. – The industry operates transparently within accepted international practices and norms that enable sustainable and profitable business models.
Source: World Economic Forum