In April 2021, the Biden administration announced a new greenhouse gas emissions reduction target for the United States. In the accompanying “nationally determined contribution” submitted to the United Nations Framework Convention on Climate Change, the administration highlighted the interplay between national and subnational policy in driving climate progress. The document promised that federal action will “[build] upon and [benefit] from a long history of leadership on climate ambition and innovation from state, local, and tribal governments.”

Is a “green resource curse” on its way? Kimberly Thompson, a Senior Advisor for Natural Resources and Conflict and the Industry Lead for Mining at the U.S. Agency for International Development (USAID), says that the current status quo in the green mining industry risks “inadvertently creating the conditions” for it to happen.

Few people can name from memory the materials required for wind turbines, photovoltaic panel semiconductors, and electric car batteries. The list is too long, but among the more recognizable minerals used in renewable production are aluminum, lithium, cobalt, iron, copper, lead, and nickel.

Last week saw the launch of SIPRI’s major policy report Environment of Peace: Security in a New Era of Risk, looking at how to manage the growing risks emerging at the nexus of environmental degradation, peace and security.

Russia’s invasion of Ukraine has shaken the world economy.  The U.S.-led push for sanctions on Russia has surprised analysts with its depth. Germany, for example, is now turning away from four decades of reliance on Russian oil and gas. Given Russia’s status as a global energy colossus, the war has raised particular uncertainty in global energy markets, leading many countries to take steps to ensure adequate supplies.

China’s energy connection to the crisis and, specifically, the war’s effect on China’s decarbonization commitments, have drawn little attention. Unfortunately, the war’s impact on energy markets has accelerated Chinese plans to return to the use of coal for power generation. And the market volatility it has inflamed is partly behind China’s return to investment-and emissions-heavy stimulus. Make no mistake, however, China’s investments in renewables are still enormous and dwarf those of the United States.

In response to the growing challenges created by climate change, consumers across the globe are demanding more environmentally friendly products. This demand is particularly evident when examining the automotive market. In 2021, global sales of electric vehicles (EVs) more than doubled from the year before, rising from 3 million to 6.6 million vehicles according to the International Energy Agency. This boom has created a need for lithium, a key component of the rechargeable batteries used to power these vehicles. Referred to as ‘white gold,’ countries with lithium reserves are racing to increase extraction and export deposits for battery production. As automobile and battery manufacturers work to meet demand and avoid supply chain shocks, many are looking toward the untapped potential of Mexican lithium.

Global insecurity driven by the conflict in Ukraine and pandemic-induced instability has come powerfully into confluence to increase threats to livelihoods across the world.

What can we do to stem the tide? This Earth Day is an opportunity to rally for action that will help us all face such challenges now and in years to come. One of the most powerful ways to do so is to solidify and expand the reach of sustainable markets. There are a number of ways that this process can begin right now.

In this Year of the Tiger, China, the world’s largest carbon emitter, is signaling more aggressive climate action on several fronts, including expanding its national carbon emission trading system (ETS).  Since the launch of the program on July 16, 2021, results have been encouraging; carbon intensity fell three and a half percent in the second half of 2021 and total carbon emissions only grew by four percent, compared to nine percent in the first half of the year. However, China’s implementation of ETS has triggered criticism for having low penalties, loose restrictions, and too low a carbon price. Like a tiger in tall grass, it is vital that Chinese policymakers pounce on the obstacles to expanding ETS coverage and transition from an intensity-based cap to an absolute cap. Signs show this can happen sooner as opposed to later.