🌱 Why was the UN panel set up?
The UN Panel on Critical Energy Transition Minerals was set up on 26 April 2024. At COP28, several “resource-rich developing countries” had voiced that they were “experiencing issues along the[ir] minerals value chain”. The UN panel was founded in response to a proposal made by these countries. After the panel was established, it convened several times and also held multi-stakeholder consultations.
🌱 What does the report entail?
On 11 September 2024, the UN Secretary-General revealed the first report by the panel. The report entails the first guiding principles of the panel and actionable recommendations for governments, industry, and other stakeholders. The aim is “to foster trust, justice, equity, and diversified supply chains, and to steer green investments across the critical energy transition minerals value chain”.
🌱 What principles were created?
In its report, the panel published seven guiding principles. The first principle is that “human rights must be at the core of all mineral value chains”. The second principle sets out that “integrity of the planet, its environment and biodiversity must be safeguarded”. The third principle emphasizes that “justice and equity must underpin mineral value chains”. The fourth principle points out that “development must be fostered through benefit sharing, value addition and economic diversification”. The fifth principle stresses that “investments, finance and trade must be responsible and fair”. The sixth principle highlights that “transparency, accountability and anti-corruption measures are necessary to ensure good governance”. The seventh principle outlines that “multilateral and international cooperation must underpin global action and promote peace and security”.
🌱 What actions are recommended?
To support the implementation of the principles, the panel set out a series of actionable recommendations. The panel suggested that a high-level expert advisory group be formed “to accelerate greater benefit-sharing, value addition and economic diversification in critical energy transition minerals value chains as well as responsible and fair trade, investment, finance, and taxation”. The panel wants a “Global Mining Legacy Fund” to be set up “to build trust and address legacy issues as a result of derelict, ownerless or abandoned mines, and [to] strengthen financial assurance mechanisms for mine closure and rehabilitation”. Overall, the panel has proposed that “equitable targets and timelines” be set “for the implementation of material efficiency and circularity approaches across the entire life cycle of critical energy transition minerals”.
🌱 What market changes are suggested?
The panel called for a “global traceability, transparency and accountability framework along the entire mineral value chain – from mining to recycling – to strengthen due diligence, facilitate corporate accountability and build a global market for critical energy transition minerals, though the framework should not be used as a unilateral trade barrier”. Moreover, they have recommended the creation of an “initiative that empowers artisanal and small-scale miners to become agents of transformation to foster development, environmental stewardship and human rights”.
Read more about UN panel’s recommendations here: