Geopolitics in Renewable Energy
Geopolitics in Renewable Energy
Geopolitics in Renewable Energy
A recent UN climate agreement has portrayed the potential to shift global energy
consumption from a mix dominated by fossil fuels to one driven by low-carbon technologies.
It is clear that if this happens, fossil-fuel-producing countries will have to adjust their
economies to reflect lower export earnings from oil, coal, and natural gas. The rise of
renewable energy may also create new centres of geopolitical power.
There are several mechanisms through which renewable energies could shape geopolitics
1. As the shift to renewable energy begins, cartels could develop around materials
critical to renewable energy technologies. Even if these cartels are unable to achieve
the kind of impact that OPEC did in the 1970s oil market, they might be able to exert
influence over consumers of these materials.
2. Rare earth elements are widely used in clean energy technologies, including solar
panels and wind turbines. Although rare earths elements are found in many countries
around the world, they are usually found in dilute concentrations and are often
difficult to extract. Today almost all mining, production and processing of rare earth
elements takes place in China. Lithium, cobalt and indium are also widely used in
clean energy technologies and might in some circumstances present opportunities for
cartelization.
3. Technology and finance: In a world in which renewables are the dominant source of
energy, capital for investment and technology may increasingly become sources of
international cooperation or rivalry. First, increased tensions between developing and
developed countries could develop over the transfer of technology. Second, conflict
over renewable energy infra- structure could develop, especially if new asymmetric
dependencies arise between major producers and consumers of renewable energy.
4. I would like to throw light upon the Indus water treaty, The IWT is a bilateral water
sharing treaty between India and Pakistan. Pakistan is signatory to the 1969 Vienna
Convention on the Law of Treaties and India is not, so the rules of the Convention are
not binding on New Delhi. There may be scope for India to wiggle an interpretation
that might allow it to abrogate the Indus Waters Treaty unilaterally. But, The IWT
does not contain a provision for either party to unilaterally suspend/terminate the
contents of the treaty. Therefore, from a technical point of view, neither India nor
Pakistan can unilaterally abrogate or modify the treaty. Yet, if one side so wishes, it
can abrogate it despite this. However, doing so would automatically mean losing
credibility and being deemed rogue on the international front. Since Pakistan is
dependent on the water supplied via this treaty, it will not want to abrogate it because
it is not in its interest to do so. For India, unilaterally abrogating or modifying the
terms of the treaty would set an extremely dangerous precedent for itself, given how
India too is a lower riparian state to important rivers that originate in China.
Submitted By:
Palak Joshi
B.A.LLB (B)
Roll No. 71