The worldwide power transition away from fossil fuels hinges on the manufacturing of applied sciences similar to wind generators, photo voltaic panels, batteries and extra, all of which require minerals, similar to lithium, copper and cobalt.
However these are sometimes situated in fragile areas of excessive biodiversity, or near communities that depend on native ecosystems for his or her livelihoods – contexts with which Latin American international locations are all too acquainted.
A current publication by the Pure Useful resource Governance Institute (NGRI), a civil society organisation centered on bettering international locations’ governance to advertise sustainable and inclusive growth, identified that globally, practically 40 per cent of those mineral assets are present in “international locations that exhibit weak or failing governance, which suggests they lack the legal guidelines, insurance policies, practices and accountability mechanisms to make sure that mining does no hurt and as an alternative delivers advantages to their populations”.
Poor governance has additionally been highlighted as a problem by the United Nations’ Panel on Essential Power Transition Minerals.
Such issues have been additionally prevalent on the UN COP16 biodiversity convention held in Cali, Colombia final October, the place the host authorities, led by its atmosphere minister Susana Muhamad, launched a proposal for a world settlement on traceability in mineral provide chains.
This requires international commitments to ascertain programs for traceability and transparency that may assist to scale back biodiversity loss and air pollution ensuing from the extraction and commerce of such minerals. The proposal additionally targets a binding international treaty at this yr’s COP30 local weather summit in Belém, Brazil.
Just a few months later, Dialogue Earth spoke with Juan Luis Dammert, NGRI’s director for Latin America, who labored on the event of the proposal launched in Cali, to listen to extra on the settlement’s targets and progress. The interview has been flippantly edited for size and readability.
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We are going to see an intensification in extraction charges and this requires international locations to higher put together or strengthen their governance frameworks. In any other case, we’re going to see repetition of the issues of the previous at a big scale.
Juan Luis Dammert, director for Latin, Pure Useful resource Governance Institute
Dialogue Earth: What precisely is the settlement that’s being promoted?
Juan Luis Dammert: This settlement has arisen from the necessity to have due diligence and traceability mechanisms for mining, particularly in circumstances the place mining merchandise come from chains that could be linked to unlawful actions. That was the unique motivation of the Colombian Ministry of Atmosphere, which has designed this initiative, with hopes to reach at COP30 in Belém with a consolidated model that may be taken on board by international locations.
What are the following steps for now?
A multi-stakeholder working group shall be created below the umbrella of the UN to take this initiative ahead. There’s a diplomatic path and public coverage work that’s opening up, which must take form for the presentation of the settlement on the nice second of confluence that’s COP30 in Belém.
What challenges lie forward?
The primary one – and I don’t fairly perceive how it will occur – is how different minerals, not solely transition minerals, shall be included. For instance, the issue within the central Amazon is that of gold. The spirit of the [UN] transition panel is about mining as an entire.
The world requires an increasing number of minerals, and we’re getting into a stage of intensification within the charges of extraction, which we should watch intently. It is a race, the place gold and different minerals may also proceed to be extracted. That’s the reason we have to develop this working group that may take a world view.
Do you see this broader inclusion of minerals, similar to gold, as potential?
I’d assume so, as a result of on this dialogue, we’re additionally speaking about biodiversity. And for international locations like Peru and Colombia, the central focus is gold and its influence on areas just like the Amazon, which is extremely biodiverse – so we’ve to have a look at that angle as nicely. The opposite huge points are human rights and the session rights of Indigenous peoples, in order that they don’t seem to be relegated within the extraction processes.
With this settlement, a giant agenda has been opened up through which there are a number of points. It’s not only a treaty for the sake of it; it’s a treaty to beat the issues generated by mining in any respect ranges. We additionally should see how international locations and markets can assure traceability, which we all know just isn’t taking place now.
Can enterprise even be concerned on this settlement, or is it solely on the authorities stage?
I believe that if you discuss a multi-stakeholder group, firms positively should be concerned. Firms should play an important function, particularly worldwide merchants and consumers. And if we discuss gold, for instance, international locations like Switzerland, the US, Canada, the United Arab Emirates and India, that are among the many principal consumers, have to be extra lively.
With minerals usually, there’s a various and sophisticated image. We should additionally not lose sight of the minerals that shall be deprived by the power transition.
For instance, northern Colombia is likely one of the principal coal-producing areas, and there have been bulletins of presidency rollbacks [in this sector]. However on the similar time, some are betting on persevering with this extraction, and there are economies that proceed to make use of coal, similar to China.
Nevertheless, the state of affairs of lithium, for instance, which is seen as vital within the power transition, is completely different. Latin America performs a key function right here: Chile is the second largest producer on the planet; Argentina has elevated its manufacturing and is rising as an important participant; Bolivia is attempting to develop its trade with out a lot success but; Peru has some exploration initiatives which have created a number of expectation within the authorities, and Mexico can be attempting to change into robust. So there’s a number of expectation for all minerals in Latin America – but in addition a number of strain. We have now to have a look at the entire image.
Is there some other mineral particularly that you simply assume we ought to be holding an in depth eye on?
Copper – in any technological situation, curiosity in it stays excessive. So what we count on now could be a protracted cycle of robust demand for copper, which Chile, Peru, Colombia and Mexico must put together for as greatest they’ll.
And if we don’t put together, how may issues find yourself?
Within the coming years, we’ll see an intensification in extraction charges and this requires international locations to higher put together or strengthen their governance frameworks.
In any other case, we’re going to see repetition of the issues of the previous at a big scale, with corruption, illegality and destruction. There isn’t any magic answer to our issues, however there are steps like this settlement, by way of which we should keep away from extra battle or injustice being generated by rising mineral extraction.
This text was initially printed on Dialogue Earth below a Inventive Commons licence.
