Abstract

Through the Inflation Reduction Act, the USA has made various regulatory and economic incentives such as tax credits, grants, loans, and federal funding that is expected to assist the USA in reaching the economy-wide net-zero target by 2050. The accelerated pace of the transition is causing a spike in demand for critical minerals such as copper and lithium which are necessary to develop energy transition technologies such as batteries and electrification networks. This article analyses the implications of the critical minerals sourcing requirements in resource-rich Sub-Saharan African (SSA) Countries such as DRC, Zambia, and South Africa. The question of a just energy transition is expounded by analyzing whether the USA’s IRA objective would be achieved without the SSA’s resource-rich countries. The article further discusses energy justice and transition issues in relation to energy sector sustainability challenges for both SSA resource-rich countries and the USA. By highlighting risks and opportunities presented by the IRA, the article highlights the USA and SSA’s common interests which could be achieved by effective cooperation as no country or even region can be self-sufficient when it comes to the full range of raw materials and processing needs for the energy transition.

This paper will be part of the OGEL Special Issue on "International Energy and Investment Law Implications of the US Inflation Reduction Act". More information here www.ogel.org/news.asp?key=762