IEA - International Energy Agency

06/08/2024 | Press release | Distributed by Public on 06/08/2024 07:32

Can government partnerships support responsible and reliable critical mineral supply chains

Partnerships should support mineral producing countries in pursuing their long-term sustainable development goals

Transparency is important, but on its own it is insufficient to guarantee that these partnerships deliver for all parties involved; content and implementation are also key.

Partnerships are an opportunity to address global imbalances in energy access and development opportunities. Consumer countries can support their partners by providing assistance on geological data management, prioritising environmental and social protections, and aiding in the development of supportive laws and regulations. And they should further consider how these partnerships can contribute to the broader ambitions of mineral producers beyond mining - including around infrastructure investment, economic diversification, and addressing domestic gaps around energy access and transitions.

Attention is increasing on ensuring that mineral-producing countries can also develop related industries such as refining and processing, rather than just exporting raw ore. This can provide additional quality jobs and generate further economic development. But integrating transparency and accountability is important here so that stakeholders can make informed decisions about different approaches. Civil society actors in Ghana have pushed for independent and publicly disclosed feasibility studies on value addition, while Congolese and Zambian civil society actors have established a forum to monitor and engage their governments on plans for a cross-border battery value chain.

More generally, adopting consultative processes can increase the likelihood that projects stemming from strategic partnerships obtain and maintain the social licence to operate, receiving ongoing acceptance or approval from the local community beyond what is required by legal or regulatory processes. With a seat at the table, local communities, Indigenous Peoples and civil society can play an accountability role in scrutinising whether mining projects meet relevant international standards, while also putting forward ideas on how to make these partnerships more meaningful for citizens.

Underpinning all of this is the pressing need to address the many environmental, social and governance risks associated with mining development - including water overuse and pollution, greenhouse gas emissions, biodiversity loss, human rights abuses, lack of community support, corruption, and the heightened risks faced by Indigenous Peoples, environmental defenders and women. If details about the content of strategic partnerships and the projects that follow were more publicly available, third parties would be able to effectively assess these issues. Additionally, if agreements incorporate criteria that require the adoption of sustainable and responsible practices, they could actively contribute to reducing these risks.

These partnerships should also require companies and financing institutions to demonstrate how they are adopting due diligence practices, ensuring that the projects they support do not lead to harm. A lack of clarity over responsibilities or weak assessment criteria could lead to this important work falling through the gaps.