Gold is the precious metal used by most people in the world. It is used either as an investment or as ornaments. A large quantity of rocks has to be mined and processed to get an ounce of gold. That is one reason why gold remains a precious metal. But how is this metal associated with climate change?
As you know, we produce gold by mining ores. It requires an immense amount of resources for that process. Mining emits many greenhouse gases (CHG) too. Many won’t understand its seriousness until one compares gold’s energy usage-the greenhouse gas emission ratio with that of other metals. Gold mining leads to the production of a vast amount of greenhouse gases than mining different metals.
Do you know what the connection between gold production, climate change, and global financial stability is? Let’s see.
What are the impacts?
The increasing amount of greenhouse gases is the main reason behind global warming. And a study by World Gold Council in 2018 suggested that global warming directly impacts the global economy and socio-economic development. As the production of gold increases, greenhouse gas emissions (CHG) increase. That could lead to global warming and eventual disturbance in the global economy.
On the first read, it might all seem impossible. But the truth is, this chain of events has already started. And it has direct impacts on the gold industry and gold investors. If this could reduce the production of gold, it can lead to a considerable disturbance in the price of gold and the overall global economy.
The positive aspect is that the World Gold Council warned the gold mining industry in 2018 about greenhouse gas emissions. And the Gold mining industry is on the path of finding alternative procedures that will result in zero carbon emission.
Why alternative methods?
After the Gold Council of India report, gold industries came up with many ways to reduce carbon emissions. The mining industry initiated steps in 2020 for energy efficiency. The World Gold Council explains this process as a long-term one and expects harmful carbon emission by 2050.
Gold is one of the most invested materials by private and institutional investors. So, gold production has to go uninterrupted as well as sustainable. In its follow-up study in 2019, the World Gold Council found out that gold’s CHG emission is relatively low. So, a sustainable gold mining option would ensure uninterrupted gold production and a safe global economy.
How does it work?
The World Gold Council has an elaborate plan in bringing carbon emission to a negative point.
A significant chunk of mining emissions is from fossil fuels used in electricity production and machinery and vehicles used in transportation. Once they control these two factors, it would be easier to manage the rest of the emissions. Instead of fossil fuels, renewable energy sources are used to reduce carbon emissions. Gold industries are also practising energy storage and conservation.
Gold, Climate Change and Future
‘Everything is connected to everything.’ By now, you may know how switching to a sustainable gold mining method directly impacts global economic growth. Small steps will lead to a promising future. That is a promise to present gold investors and others planning to invest in gold. The value of gold will be increasing as it becomes sustainable—research well before investing in gold. For more gold investment-related queries, contact the best gold brokers of London RPS Gold.