The transition toward a low-carbon economy will have important implications for major mineral-exporting countries. We examine the distribution of these minerals across emerging markets and developing economies (EMDEs) and identify potential implications, notably fiscal implication, for these economies due to the shifting patterns of demand that are likely to result from the energy transition. Producers of specific minerals like copper, nickel, and graphite stand to gain from the projected increase in demand for these minerals over the next two decades or so. These countries include Brazil, Chile, China, Mozambique, Peru, Philippines, and Indonesia. Our study emphasizes the need for proactive government planning and policies to seize economic opportunities and mitigate potential risks arising from the low-carbon transition.
Keywords climate change, climate risks, critical minerals, energy transition, fiscal policy, renewable energy resources