The transition to a clean energy future is being accompanied by increasing demand for minerals and metals needed for renewable energy production. The World Bank Group is supporting countries with technical and policy advice, direct investment financing, risk mitigation measures and by leveraging private sector financing. In 2019, the World Bank launched the Climate-Smart Mining (CSM) Initiative in partnership with IFC, which supports the responsible extraction, processing and recycling of minerals needed for low-carbon technologies by scaling up technical assistance and investments in mineral-rich developing countries.
The mining sector’s response to a low carbon future extends beyond the supply of critical minerals. CSM practices will be needed to decarbonize and optimize the use of minerals needed to manufacture renewable energy and other low-carbon technologies.
These practices include:
- integration of renewable energy into mining operations
- decarbonization of supply chains
- strategic use of geological data for a better understanding of “strategic mineral” endowment
- preventing deforestation
- supporting sustainable land-use practices
- repurposing mine sites and recycling of minerals
- sharing of infrastructure
- supporting the climate resilience of local communities.
CSM practices will aim to ensure that the mining operations that produce the minerals necessary for a low carbon future, are themselves low carbon intensive. The CSM Initiative is based on four building blocks: climate mitigation, climate adaptation, reducing material impacts and creating market opportunities.
IFC is supporting the CSM Initiative by producing insights and knowledge that would help IFC’s investment and advisory clients to accelerate the adoption of CSM principles and transition to a greener mining supply chain.
IFC is developing a net zero roadmap for the mining sector, which outlines a range of possible steps and pathways to limit emissions from extraction to end use, with the aim of creating a greener mining supply chain.
IFC will develop guidance for mining companies to undertake vulnerability assessments and identify adaptation measures to help strengthen the climate resilience of local communities with a focus on women.
Lastly, IFC is developing a business case and toolkit to promote gender inclusivity in climate-smart mining practices.