At COP 28, governments agreed to triple global renewable energy capacity by 2030. It was noted that a successful transition to renewable, low-carbon energy would need significantly more minerals like copper, lithium, and nickel to achieve that. As a result, the UN Secretary-General Antonio Guterres appointed a panel to develop a set of voluntary principles to address challenges often linked to mining—such as social conflict and environmental degradation—and ensure a just, equitable, and thriving energy transition. The cross-sectoral panel produced a report titled “Resourcing the Energy Transition: Principles to Guide Critical Energy Transition Minerals Towards Equity and Justice” and published the same last week.
In their report, the panel outlined seven fundamental principles essential for guiding the energy transition, particularly in the context of critical energy transition minerals. First and foremost, it emphasizes that human rights must be at the core of all mineral value chains. This principle underscores the importance of respecting and upholding human rights throughout the entire process of mineral extraction and processing, ensuring that the rights of individuals and communities are protected. Secondly, the integrity of the planet, its environment, and its biodiversity must be safeguarded. This principle highlights the necessity of protecting the environment and maintaining biodiversity while pursuing the extraction and use of energy transition minerals.
Justice and equity are also crucial components, as the panel stresses that these values must underpin mineral value chains. This means that the benefits derived from mineral resources should be distributed fairly, ensuring that local communities and mineral-producing countries receive their rightful share. Furthermore, the principles advocate for fostering development through benefit sharing, value addition, and economic diversification. This encourages practices that promote local development and contribute to economic growth through responsible management of mineral resources.
In addition, the panel calls for investments, finance, and trade to be responsible and fair. This principle advocates for ethical practices in all financial dealings related to energy transition minerals, ensuring they contribute positively to society. Transparency, accountability, and anti-corruption measures are necessary to ensure good governance within mineral value chains. This principle stresses the importance of having transparent and accountable governance structures to oversee the management of these resources. Lastly, the panel emphasizes the need for multilateral and international cooperation to underpin global action and promote peace and security. This principle calls for collaborative efforts at the international level to ensure a successful and equitable energy transition.
These principles are not entirely new. What is needed, especially in Africa, is a combination of emerging technologies and the strict enforcement of existing laws. Integrating innovative solutions such as Blockchain for traceability and open data systems for transparency can revolutionize how critical energy transition minerals are managed. Open data can promote transparency by providing accessible and verifiable information on extracting, processing, and distributing critical minerals. This approach fosters accountability and enables stakeholders, including local communities, governments, and investors, to monitor and evaluate the impacts of mineral value chains. Blockchain technology offers a robust solution for traceability and integrity within mineral supply chains.
Moreover, integrating Blockchain technology with sustainability reporting can provide real-time environmental and social governance (ESG) metrics data. This integration would enable more informed decision-making and ensure that companies adhere to the highest environmental protection and human rights standards. Overall, these initiatives support the panel’s principles and contribute to building trust and credibility in the global management of critical energy transition minerals.
It is also time for Africa to leverage its population dividend and abundant mineral resources for structural economic change. Africa can drive sustainable development and innovation by harnessing the potential of its young and dynamic workforce alongside the continent’s vast mineral wealth. This transformation requires strategic investments in education, infrastructure, and technology, fostering an environment where human and natural resources can be utilized to their fullest potential. The integration of advanced technologies and transparent governance mechanisms can ensure that the benefits of this economic shift are equitably distributed, promoting social and economic justice across the continent.
The continent must protect and support the nascent energy transition industries to achieve this by implementing policies that encourage innovation, investment, and sustainable practices. This support will enable these industries to flourish and contribute meaningfully to fostering a favorable regulatory environment and providing financial incentives; governments can attract local and international investors to these emerging sectors.
Africa stands at a pivotal moment to harness its demographic boon and rich mineral reserves to catalyze structural economic transformation. Investing strategically in education, infrastructure, and technology, and embracing emerging technologies like Blockchain and open data systems, the continent can ensure that the benefits of its natural and human resources are maximized and equitably shared. The principles laid out by the UN panel offer a comprehensive framework to guide this transition, emphasizing human rights, environmental integrity, justice, equity, and international cooperation.
