Not Critical, Yet Not Irrelevant for the Environment: Gold
- Terraquota
- Feb 27
- 3 min read
This article is part of our “One metal a month” series, in which we explore one strategic metal at a time and its role in the energy transition and global supply chains. These materials are increasingly shaping industrial competitiveness and geopolitics, while raising urgent questions about security of supply, recycling, environmental impact and price volatility. This is the February edition of the series.
When gold makes headlines, it is usually for price spikes (like in February 2026), because we perceive it as financially stable and hold it as an investment
Gold also is not classified as a critical or strategic material on major national lists, nor is it explicitly featured in the outlooks of the International Energy Agency. But there is an angle that is often forgotten when talking about gold - its not irrelevant role in the energy transition.
Gold could be called the old monarch of metals. As highlighted by the BBC (Rowlatt, 2013), it is “chemically uninteresting.” It does not rust, tarnish or corrode. It barely reacts with other elements. It is non-toxic, highly malleable and has a relatively low melting point. A gold coin struck in antiquity can still be presented pristine behind museum glass today. These rare properties have made gold the perfect medium of exchange and store of value.
Combine all of the properties mentioned above with the fact that gold is also an excellent conductor of electrical current, and it becomes clearer why it has secured an important place in industry. Its chemical stability and conductivity make it particularly suited for precise electronic components. Yet because its price is largely driven by financial and jewelry demand, it is used sparingly — only where its specific performance outweighs the cost.
Advanced electronics used in renewable power systems, electric vehicles and digitalised grids often rely on gold components for durability and efficiency.
A relatively new addition to gold demand is the energy transition. Indeed, gold does contribute to low-carbon and digital technologies: advanced electronics used in renewable power systems, electric vehicles and digitalised grids often rely on gold components for durability and efficiency. Gold nanoparticles are being explored to enhance hydrogen fuel cell performance, while gold-based catalysts show promise in converting CO₂ into other fuels or chemicals.
Gold stands apart from other critical raw materials like copper, lithium or nickel.
Still, gold stands apart from materials such as copper, lithium or nickel. It will not experience a comparable demand boom, nor does it raise the same security-of-supply concerns.
Why?
With demand anchored in jewelry (49%) and investment, gold demand is not easily pulled by other trends like electrification or decarbonisation.
There are no supply security concerns
Gold production is geographically diversified. The leading mining countries include China, Russia and Australia, with the biggest reserves in the United States. Aside from the Russian gold embargo since 2022, gold is not the object of geopolitical shows of force, or weaponized. It is not subject to export restrictions like molybdenum or rare earths. No single country controls the market, and there is limited concern about production concentration.
Gold is also one of the most recyclable and recycled metals in the world, because it is recyclable at high purity and does not lose its properties.
In that sense, gold stands apart from many of today’s critical materials.
Where gold intersects most directly with climate policy? In its production.
Where gold intersects most directly with climate policy is in it's production. Gold mining is energy-intensive, involving significant fuel use, electricity consumption and complex processing techniques. As climate targets tighten and investors increasingly scrutinise environmental performance, producers face mounting pressure to decarbonise operations.
Gold may not be “critical” in the official sense. It may not drive the transition in volume terms. But it sits at an unusual intersection: It is essential to our histories, our financial systems, environmental impact, and, in quieter ways, to the technologies shaping a modern, decarbonized world.
Authored by Diane Naffah (Terraquota), reviewed by Irina Chèvre (Terraquota)
27th February 2026
