STATE REGULATION OF THE EXTRACTION OF CRITICAL MINERALS AS A DOMINANT COMPONENT OF ACHIEVING THE GOALS OF SUSTAINABLE DEVELOPMENT AND STRENGTHENING THE ECONOMIC SECURITY OF THE STATE

Abstract

The article states that the climate crisis and measures to mitigate it in recent years have significantly changed the energy landscape of the countries of the world and the configuration of the investment portfolio. Long-term investments in fossil fuels have been replaced by investments in environmentally friendly technologies, renewable sources of electricity, and smart systems for its distribution and storage. It is emphasized that even with full support of investments, plans for the decarburization of the electric power industry may remain unattainable, as the global reserves of «critical minerals», which are absolutely necessary for the transition to ecologically clean electric power, are noticeably decreasing and the demand continues to grow relentlessly. The scenarios developed by the International Energy Agency for the further transformation of the electric power sector to a low-carbon economy model were reviewed and briefly characterized: the scenario of declared policy (STEPS), the scenario of declared obligations (APS), and the scenario of net zero emissions by 2050 (NZE). The main aspects of each of the scenarios are outlined: the volume of demand for «critical minerals» their geographical concentration of extraction, and processing. It is emphasized that the world leader in the extraction and processing of «critical minerals» is the PRC, which dictates the «rules of the game» to the majority of the world's countries. Therefore, the issue of supplies of “critical minerals” is quite painful. It was emphasized that critical minerals market participants hope to reduce total dependence through new mining projects in different geographical regions, facilitating cross-investment opportunities between partner countries, and strengthening cooperation through initiatives such as the Mineral Security Partnership and the implementation of financial instruments. The potential of Ukraine's «critical minerals» and its ability to reduce the dependence of EU countries on the People's Republic of China are characterized. The main challenges of the development of the extractive industry in Ukraine are identified, and the main vectors of the Roadmap of the partnership between Ukraine and the EU regarding critical raw materials for 2023-2024 are outlined. It was emphasized that in order for Ukraine not to become only a supplier of raw materials, it is necessary to develop the processing of raw materials and the production of products with added value. It is emphasized that such localization requires much wider efforts of the government than the list of measures in the field of regulating the extraction of «critical minerals» defined by the latest legislative acts. The author emphasizes the need to develop a comprehensive system of incentives and introduce new opportunities for stabilization and sustainable development of Ukraine's economy in order to ensure sustainability and progress towards sustainable resource management and optimization of supply chains for critical raw materials. Proposals have been developed for climate-smart mining of «critical minerals» in Ukraine in the near future.