While securing critical minerals has become a top priority for governments around the world, extractive industries pose significant risks to low- and middle-income countries. Without robust environmental and public-health protections, only a privileged few will reap the rewards of the clean-energy transition.
NAIROBI – Global efforts to combat climate change are primarily focused on phasing out fossil fuels and shifting to renewable energy. The accelerated pace of this transition, particularly in high-income countries, has led to a growing demand for critical metals and rare minerals, which are crucial for clean-energy infrastructure like batteries and semiconductors. According to the World Bank, more than three billion tons of minerals and metals will be needed by 2050 to develop the technologies required to limit the global temperature rise to 2° Celsius above pre-industrial levels.
As highlighted in a recent article, securing mineral rights has thus become a top priority for policymakers around the world. Leading countries such as the United States and China are seeking strategic partnerships with resource-rich countries, many of them low- and middle-income economies grappling with competing priorities and limited financial resources. The Democratic Republic of the Congo, for example, remains the world’s leading source of mined cobalt, an essential input for electric-vehicle batteries. According to the United States Geological Survey, the DRC accounts for more than 70% of the world’s mined cobalt production.
But the absence of robust governance and accountability structures in mineral-rich countries prevents the equitable distribution of the gains from mineral extraction, driving local communities into poverty and fueling violent conflicts. Despite their vast mineral wealth, countries such as Angola, Chad, and the DRC have been plagued by incidences of corruption, authoritarian repression, militarization, and civil wars.
Moreover, mining operations often take place in remote locations, where marginalized local communities lack the necessary negotiating power and tools to deal with well-resourced and sophisticated multinational corporations, resulting in lopsided deals with far-reaching economic and environmental implications. Consequently, unscrupulous extractive-industry actors may cut corners or do the bare minimum to comply with regulatory frameworks aimed at protecting the environment and the health of the communities in which they operate.
Without robust environmental, social, and public-health protections, the harmful effects of mining operations can erode the green transformation’s expected economic benefits. There are many examples of communities around the world whose livelihoods have been adversely affected by social and environmental degradation caused by reckless resource-extraction practices. If allowed to continue, this could result in a pyrrhic victory, with a privileged few reaping the rewards of the clean-energy transition while most of the world is left behind.
Crucially, unregulated mining can have far-reaching public-health implications for low-income countries. Viral epidemics such as Ebola and yellow fever have often been linked to environmental degradation, which forces local communities to venture deep into wildlife sanctuaries to make a living. A 2021 Stanford University study, for example, identified gold mining in the Brazilian Amazon as a major contributor to malaria outbreaks across the region. Moreover, environmental pollution caused by mining operations, including so-called “artisanal” mining, negatively affects workers’ health both directly and indirectly, reducing overall productivity.
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In addition to these public-health effects, environmental degradation caused by harmful mining practices has also been linked to reduced economic opportunities for local communities in affected countries. Research shows that unregulated mining can lead to a wide range of negative consequences, including reduced food production, poor nutrition, social apathy, delinquency, forced migration of large populations, and violent conflicts.
Considering the far-reaching effects of mineral extraction, national governments and international policymakers must take steps to safeguard vulnerable communities throughout the broader value chain. While wealthy countries go to great lengths to procure, develop, and adopt clean-energy technologies for their citizens’ benefit, mineral-producing countries could face devastating consequences if adequate protective measures are not implemented.
Given this reality, countries benefiting from mineral extraction must ensure that affected communities can also enjoy the fruits of the clean-energy transition. Existing global frameworks, such as those addressing conflict diamonds, could be easily adapted to maintain the integrity of such initiatives. Similarly, emerging technologies like blockchain could help provide clear visibility and accountability, ensuring that the minerals essential for a lower-carbon future are sourced and distributed ethically.
Encouragingly, many stakeholders have recognized the urgent need to bring this issue to the forefront of global policy discussions. Through its Climate-Smart Mining Initiative, the World Bank supports investment and provides technical assistance to mineral-rich developing countries, facilitating the sustainable extraction and processing of essential minerals and metals and minimizing mining’s social and environmental impacts. Similarly, the World Economic Forum recently launched a global multi-stakeholder platform aimed at promoting the green agenda by facilitating collaborative risk management and international cooperation.
While these global efforts hold great promise, it is crucial to align the economic and social objectives of the energy transition. To achieve this, international policymakers must ensure that green programs fit the specific context in which they will be implemented by encouraging local communities affected by mineral extraction to participate in their design. Only by doing so can we build a clean-energy future that is truly inclusive and sustainable.
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NAIROBI – Global efforts to combat climate change are primarily focused on phasing out fossil fuels and shifting to renewable energy. The accelerated pace of this transition, particularly in high-income countries, has led to a growing demand for critical metals and rare minerals, which are crucial for clean-energy infrastructure like batteries and semiconductors. According to the World Bank, more than three billion tons of minerals and metals will be needed by 2050 to develop the technologies required to limit the global temperature rise to 2° Celsius above pre-industrial levels.
As highlighted in a recent article, securing mineral rights has thus become a top priority for policymakers around the world. Leading countries such as the United States and China are seeking strategic partnerships with resource-rich countries, many of them low- and middle-income economies grappling with competing priorities and limited financial resources. The Democratic Republic of the Congo, for example, remains the world’s leading source of mined cobalt, an essential input for electric-vehicle batteries. According to the United States Geological Survey, the DRC accounts for more than 70% of the world’s mined cobalt production.
But the absence of robust governance and accountability structures in mineral-rich countries prevents the equitable distribution of the gains from mineral extraction, driving local communities into poverty and fueling violent conflicts. Despite their vast mineral wealth, countries such as Angola, Chad, and the DRC have been plagued by incidences of corruption, authoritarian repression, militarization, and civil wars.
Moreover, mining operations often take place in remote locations, where marginalized local communities lack the necessary negotiating power and tools to deal with well-resourced and sophisticated multinational corporations, resulting in lopsided deals with far-reaching economic and environmental implications. Consequently, unscrupulous extractive-industry actors may cut corners or do the bare minimum to comply with regulatory frameworks aimed at protecting the environment and the health of the communities in which they operate.
Without robust environmental, social, and public-health protections, the harmful effects of mining operations can erode the green transformation’s expected economic benefits. There are many examples of communities around the world whose livelihoods have been adversely affected by social and environmental degradation caused by reckless resource-extraction practices. If allowed to continue, this could result in a pyrrhic victory, with a privileged few reaping the rewards of the clean-energy transition while most of the world is left behind.
Crucially, unregulated mining can have far-reaching public-health implications for low-income countries. Viral epidemics such as Ebola and yellow fever have often been linked to environmental degradation, which forces local communities to venture deep into wildlife sanctuaries to make a living. A 2021 Stanford University study, for example, identified gold mining in the Brazilian Amazon as a major contributor to malaria outbreaks across the region. Moreover, environmental pollution caused by mining operations, including so-called “artisanal” mining, negatively affects workers’ health both directly and indirectly, reducing overall productivity.
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Project Syndicate is returning to Climate Week NYC with an even more expansive program. Join us live on September 22 as we welcome speakers from around the world at our studio in Manhattan to address critical dimensions of the climate debate.
Register Now
In addition to these public-health effects, environmental degradation caused by harmful mining practices has also been linked to reduced economic opportunities for local communities in affected countries. Research shows that unregulated mining can lead to a wide range of negative consequences, including reduced food production, poor nutrition, social apathy, delinquency, forced migration of large populations, and violent conflicts.
Considering the far-reaching effects of mineral extraction, national governments and international policymakers must take steps to safeguard vulnerable communities throughout the broader value chain. While wealthy countries go to great lengths to procure, develop, and adopt clean-energy technologies for their citizens’ benefit, mineral-producing countries could face devastating consequences if adequate protective measures are not implemented.
Given this reality, countries benefiting from mineral extraction must ensure that affected communities can also enjoy the fruits of the clean-energy transition. Existing global frameworks, such as those addressing conflict diamonds, could be easily adapted to maintain the integrity of such initiatives. Similarly, emerging technologies like blockchain could help provide clear visibility and accountability, ensuring that the minerals essential for a lower-carbon future are sourced and distributed ethically.
Encouragingly, many stakeholders have recognized the urgent need to bring this issue to the forefront of global policy discussions. Through its Climate-Smart Mining Initiative, the World Bank supports investment and provides technical assistance to mineral-rich developing countries, facilitating the sustainable extraction and processing of essential minerals and metals and minimizing mining’s social and environmental impacts. Similarly, the World Economic Forum recently launched a global multi-stakeholder platform aimed at promoting the green agenda by facilitating collaborative risk management and international cooperation.
While these global efforts hold great promise, it is crucial to align the economic and social objectives of the energy transition. To achieve this, international policymakers must ensure that green programs fit the specific context in which they will be implemented by encouraging local communities affected by mineral extraction to participate in their design. Only by doing so can we build a clean-energy future that is truly inclusive and sustainable.