The World Bank recently launched its mechanism for climate-friendly mining. It is the first instrument in the world to support a mining operation adapted to climate and sustainable action. The latter will help introduce sustainable extraction and processing practices for minerals and metals used in clean energy technologies.
This mechanism targets resource-rich developing countries to take full advantage of increased demand for mining products while ensuring that extraction management minimizes the environmental and climate footprint.
The World Bank has planned to invest a total of $ 50 million over a five-year period. The mechanism focuses on activities around four central axes. It’s about: « mitigation of climate change; adaptation to climate change; the reduction of material consequences; and the creation of opportunities to contribute to decarbonisation and the reduction of impacts throughout the value chain of essential minerals for clean energy technologies. «
Eligibility of projects
According to a statement from the World Bank, eligible projects must meet certain objectives. They will have to:
• support the integration of renewable energies into mining operations, recognizing that the extractive sector accounts for 11% of total energy use worldwide and that mining operations in remote areas often operate on diesel or coal;
• promote the strategic use of geological data to identify sites associated with « strategic minerals »;
• practice forest-friendly mining, prevent deforestation, and support sustainable land use practices or reconverting former mine sites;
• Recycle minerals, helping developing countries convert to the principles of the circular economy and reuse these products in an environmentally friendly way.
For the carbon-free transition
The creation of this mechanism is a direct result of a World Bank report entitled « The Growing Role of Minerals and Metals for a Low-Carbon Future« . He concluded that a decarbonized future would be much more voracious in minerals than anticipated in a business-as-usual scenario. The global demand for strategic minerals – lithium, graphite and nickel in particular – will literally explode by 2050, with increases of 965, 383 and 108% respectively.
« If this shift in demand for minerals and metals opens up real prospects for resource-rich developing countries, it also brings with it new challenges: without climate-friendly extraction practices, the negative effects of this activity will growing, to the detriment of vulnerable communities and the environment », says the World Bank.
Thus, the multi-donor trust fund will support developing and emerging economies in implementing sustainable and responsible strategies and practices across the value chain. The German government and private companies Rio Tinto and Anglo American are among its partners.
And insist: « The mechanism will also help governments set up a sound policy, regulatory and legal framework to promote climate-friendly mining and create the conditions for private investment. «
All things considered, the World Bank claims to support a carbon-free transition when mining is climate-friendly and relies on sustainable and clean sectors. Developing countries have a critical role to play in this transition by harnessing strategic minerals without harming communities, ecosystems or the environment.
« Countries with strategic minerals thus have an ideal opportunity to take advantage of the global transition to clean energy », said Riccardo Puliti, senior director and head of the Energy and Mining Sector at the World Bank.
Eric TSHIKUMA