The Climate-Smart Mining Initiative identifies four pillars that consist of thematic building blocks and cross-cutting themes that are at the core of a more responsible and sustainable mining sector. They are designed to be comprehensive and help in the identification of climate-smart practices throughout the value chain from mine to end-use. CSM supports the sustainable extraction, processing and recycling of minerals and metals needed to secure supply for low-carbon technologies and other critical sectors by creating shared value, delivering social, economic and environmental benefits throughout their value chain in developing and emerging economies.
Climate-Smart Mining Initiative
Reduce emissions through renewable energy and energy efficiency: The mining sector is energy-intensive, accounting for 4-7% of global greenhouse gas (GHG) emissions. Renewable energy and energy efficiency are key to decarbonize in the mining industry.
Renewable energy offers a cleaner alternative to fossil fuels, leading to reduced emissions. For example, solar and wind power can be used to generate electricity for mining operations, and electric vehicles can be used to transport materials.
Energy efficiency plays an important role in decreasing energy consumption in mining operations, which can also help to reduce emissions. For example, mining companies can improve the efficiency of their machinery and equipment, and they can install insulation to reduce heat loss.
Remove emissions through carbon sinks and sequestration: The Intergovernmental Panel on Climate Change (IPCC) defines net-zero as the point when GHG emissions at source are balanced globally by GHG removals. To achieve a 1.5°C future, CO2 emissions need to reach net-zero around 2050.
Mining operations can contribute to carbon removal through natural strategies such as afforestation and other land-related activities, and by using emerging technologies such as carbon capture, storage, and utilization (CCS&U).
Nature-based solutions: Nature-based solutions (NbS) intend to protect, sustainably manage, and restore natural and modified ecosystems. They are vital for mitigating climate change by absorbing and storing carbon dioxide, and they also help to adapt to climate change by reducing the impacts of extreme weather events and sea level rise.
The mining sector can support NbS by adopting sustainable land practices throughout the mining lifecycle, from exploration to extraction, processing, and mine closure. These practices can include maintaining wetlands and urban green spaces, managing watersheds and reservoirs, practicing community-based natural resource management, conserving soil, planting trees, among others.
Enhance resilience through investment in physical, human, and social capital: The mining sector can enhance its resilience to climate change by investing in physical, human, and social capital.
Physical capital, including infrastructure such as storm, wastewater, and waste management systems, sea walls, and early warning systems, safeguards mining operations from the impacts of climate change, such as flooding, drought, and extreme weather events. Regular maintenance and upgrades ensure their effectiveness in the face of increasingly severe weather events.
Human capital refers to the skills, knowledge, and abilities of workers and communities. To enhance resilience to climate change, workers should receive training in climate-resilient practices, such as how to operate safely in extreme weather conditions. Communities require access to information about climate risks and how to mitigate them. Fostering collaboration, strong relationships, and support networks is crucial for collective resilience.
Social capital refers to the networks and relationships between people and organizations. Strong social capital can help communities to cope with the impacts of climate change by providing support and resources.
Recycle Critical Minerals: Recycling critical minerals is essential to alleviate the demand for primary metals and to decarbonize the mining industry. Recycling offers environmental benefits, particularly in reducing greenhouse gas emissions for minerals, but it also has obstacles such as energy and water use.
The recycling rates of different minerals vary significantly due to cost and technical factors, with steel having high recycling rates, but a significant portion still coming from primary production. Different products within mineral categories have varying recycling rates, e.g., 95% for automobile steel and 70% for steel packaging.
While technological advancements are crucial for developing the mineral recycling industry to lower costs and meet low-carbon technology demands, international policy coherence is necessary to address environmental and cost concerns. Developing countries have the potential to contribute to the recycling of critical minerals when low-carbon technologies reach the end of their life cycle. (EOL). This presents an opportunity to create new employment opportunities, develop skills, and foster the growth of local industries.
Repurpose Materials and Reuse Resources: Reusing and repurposing end-of-life (EOL) products and materials is another way to adopt a circular approach to the management of critical minerals. This is distinct from recycling minerals, which involves breaking down products and materials to recover the minerals. Reusing and repurposing, on the other hand, involves using products and materials in their entirety or in part for a different purpose.
For example, end-of-life electric vehicle (EV) batteries can be used for secondary applications in stationary energy storage. This is because EV batteries do not have the same battery cycle requirements as EVs, so they can be used for applications that require less power and discharge cycles.
Another example is tailing ponds, which are waste materials from mining operations. Tailings ponds can contain critical minerals that were, in the past, most likely abandoned because they were considered uneconomic to extract. However, new technologies are being developed to recover these minerals from tailing ponds.
Finding ways to reuse and repurpose EOL products and materials can be beneficial for developing countries, from a cost and environmental perspective. It can help to reduce waste, conserve resources, and create jobs.
De-risking Investment for Critical Minerals: Mobilizing private capital to develop critical mineral resources in developing countries is a key component of the CSM framework. However, the industry has shown reluctance to investing in developing countries due to the political risk associated with operating in jurisdictions with weak governance and poor regulatory frameworks. Rising production costs from grade declines and resource depletion has also pushed the industry to become more cautious with new investments, resulting in a low pipeline of new mining projects, such as copper. The possible shortage of some critical minerals could impact the production and deployment of low-carbon technologies needed to reach a net zero future.
To address this gap, the CSM Initiative will leverage the suite of available financial, and risk and mitigation products offered by the World Bank (IFC, MIGA) to de-risk investments for critical minerals in developing countries and emerging economies. To complement this de-risking approach, the World Bank will continue to work with governments to strengthen their regulatory and legal frameworks to encourage low-carbon mining and governance to improve the investment climate.
Improve Geological and Commodity Data Access: One barrier to investment and the development of sound policies and regulations to develop critical minerals is the lack of robust geological data in many developing countries. The data regarding some of these critical mineral supply chains is also often lacking, or only available through proprietary databases, making it difficult for governments to trace and understand the carbon footprint of mineral supply chains (e.g., Scope 3 emissions). Companies and investors will not provide capital for new exploration projects in developing countries that do not have the basic required geological information. Governments, on the other hand, need proper market (commodity) data to better negotiate with investors. It will also be difficult for extractive-led economies (and companies) to reduce their GHG emissions without being able to properly benchmark their emissions against their peers.
It is therefore essential to help developing countries improve their collection and management of geological and commodity data to:
enhance their analysis of existing geodata and new geodata acquisition, and
understand the emissions intensity of their mineral production relative to other producers with similar commodities across the supply chain.
This will enable governments to attract investments into their mining sector, as well as provide them with robust geological and market data to better assess their resources and emissions relative to global demand for commodities they own.
Citizen Engagement:
Involving and collaborating with various stakeholders, such as local communities, indigenous groups, and non-governmental organizations, is essential for effective decision-making and the adoption of sustainable practices.
Gender:
The mining sector has a responsibility to address gender inequalities and promote gender equity throughout the mining sector. Mining activities can affect women and men differently and aims to ensure that both genders have equal access to benefits, opportunities, and decision-making processes. This involves promoting equal employment opportunities, fair wages, and safe working conditions for women in mining. Gender-sensitive policies and practices also focus on enhancing the participation and representation of women in leadership roles within the industry, as well as supporting women-owned businesses and entrepreneurship in mining-related sectors. By integrating gender considerations into sustainable mining frameworks, we can create more inclusive and equitable mining practices that contribute to the social, economic, and environmental well-being of communities and stakeholders involved.
Strong Governance and Adequate Regulatory Framework:
Good governance and ethical behavior are essential for sustainable mining. This involves transparent decision-making, regulatory compliance, anti-corruption measures, and adherence to international standards. It promotes accountability, integrity, and responsible business practices within the mining industry. An adequate regulatory framework provides a legal and governance structure that promotes responsible mining practices, protects the environment, respects human rights, engages local communities, and contributes to the long-term sustainability of the mining sector.
Innovation:
Technology and innovation are essential for achieving sustainable mining outcomes. Advanced technologies such as automation, robotics, data analytics, and renewable energy solutions can improve efficiency, reduce environmental impacts, and enhance safety in mining operations.
