Critical Minerals and the Global Energy

As global demand for minerals essential to renewable energy technology is expected to triple by 2030, a UN-convened expert panel has released recommendations to ensure the energy transition is just, equitable, and sustainable. The report emphasizes the importance of protecting human rights, promoting transparency, and fostering economic development, especially for resource-rich developing nations.

United Nations Secretary-General António Guterres described the panel’s report, titled Resourcing the Energy Transition: Principles to Guide Critical Energy Transition Minerals towards Equity and Justice, as a “how-to guide” for achieving prosperity alongside clean energy. The report provides actionable steps for governments, industries, and stakeholders to create a renewable energy revolution grounded in fairness.

THE ENERGY TRANSITION AND ITS IMPORTANCE

The demand for critical minerals like copper, lithium, cobalt, nickel, and rare earth elements—key components in technologies like wind turbines, solar panels, and electric vehicles—is expected to soar. According to the International Energy Agency, the mineral demand for clean energy applications could nearly triple by 2030. This surge is vital in reaching global net-zero carbon emissions by 2050.

However, this rapid increase in demand poses risks if not managed carefully. Without equitable and sustainable practices, the rush for these resources could lead to environmental degradation, human rights abuses, and deepening inequalities.

PANEL’S RECOMMENDATIONS FOR FAIRNESS AND JUSTICE

The panel’s report outlines seven guiding principles to ensure the energy transition respects human rights, fosters equity, and promotes sustainable development. These principles focus on fairness across the entire minerals value chain—from mining to manufacturing, transportation, and recycling.

The report stresses the importance of transparency, calling for a global framework to ensure that the sourcing of critical minerals is ethical and environmentally responsible. It also emphasizes the need for investment in local communities and the protection of artisanal and small-scale miners, who often face exploitation.

ROLE OF DEVELOPING COUNTRIES

Developing nations rich in critical minerals stand to benefit from the energy transition. These countries have an opportunity to diversify their economies, create green jobs, and drive sustainable development. However, without proper management, they risk falling into commodity dependence and facing adverse social and environmental impacts.

To prevent this, the report encourages governments and industries to adopt fair practices that protect livelihoods, promote local development, and address environmental concerns.

ENVIRONMENTAL AND SOCIAL CONCERNS

The global race for critical minerals brings significant environmental and social challenges. Mining operations can result in deforestation, water contamination, and the displacement of communities. Moreover, human rights violations, including unsafe working conditions and child labour, are prevalent in some mineral-rich regions.

The panel’s recommendations focus on mitigating these risks by advocating for stronger regulations and corporate responsibility along the entire mineral supply chain. This includes measures to protect human rights, preserve ecosystems, and ensure the equitable distribution of benefits.

URGENCY OF COOPERATION FOR A SUSTAINABLE FUTURE

Ambassador Nozipho Joyce Mxakato-Diseko of South Africa, Co-Chair of the Panel on Critical Energy Transition Minerals, underscored the importance of global cooperation. She stressed that nations must work together, guided by common values like human rights, justice, and equity, to achieve shared prosperity through the energy transition.

At the heart of this cooperation is the need to address multiple global crises, including climate change. Mxakato-Diseko highlighted that limiting global warming to 1.5 degrees Celsius, a key goal under the Paris Agreement, requires a sufficient and affordable supply of critical minerals.

AVOIDING THE MISTAKES OF THE PAST

Director-General for Energy Ditte Juul Jørgensen of the European Commission, another Co-Chair of the panel, emphasized that the world cannot afford to repeat past mistakes in resource extraction. She called for the responsible sourcing of critical minerals to ensure that the energy transition not only combats climate change but also supports economic growth and social justice.

By following the principles set out in the report, Jørgensen believes the global community can create a sustainable future that benefits all, particularly developing nations with rich mineral resources.

KEY RECOMMENDATIONS

The panel’s recommendations focus on promoting fairness, transparency, and sustainability across the mineral value chain. Some of the key proposals include:

  • Creating a High-Level Expert Advisory Group: This group, housed within the UN, would facilitate multistakeholder dialogue on economic and environmental issues related to mineral sourcing.
  • Establishing a Global Framework for Traceability and Accountability: Ensuring transparency and responsibility from mining operations to end-use recycling.
  • Addressing Legacy Issues: A fund to rehabilitate abandoned and ownerless mines, particularly in developing countries, to mitigate environmental damage.
  • Empowering Artisanal and Small-Scale Miners: Supporting these miners to become agents of positive change, promoting sustainable practices and protecting their rights.
  • Strengthening Circular Economy Efforts: Enhancing material efficiency and recycling efforts to reduce reliance on newly mined minerals.

e Role of the UN and Future Steps

The UN Secretary-General has positioned the organization as a neutral convener of diverse interests, guiding the complex issues surrounding the energy transition. The panel’s recommendations will be shared with member states and other stakeholders ahead of COP29, ensuring that discussions about critical minerals are integrated into global climate strategies.

As the world accelerates its shift towards renewable energy, the UN’s leadership will be crucial in ensuring that the transition is not only swift but also fair and just.

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