SDG 7: Affordable and Clean Energy | SDG 12: Responsible Consumption and Production
Institutions: Ministry of Mines | Ministry of Environment, Forest and Climate Change | Ministry of Finance
The UN Environment Programme (UNEP) released a report, titled Financing the Responsible Supply of Energy Transition Minerals for Sustainable Development, highlighting that achieving the global clean energy transition requires a massive, coordinated increase in the supply of energy transition minerals (such as lithium, cobalt, and rare earth elements). The report cautions that if this scaled-up mining continues under current industry practices, it risks widespread social disruption, environmental damage, and inequitable distribution of economic benefits. The analysis focuses on a crucial leverage point: reforming the finance sector to actively promote responsible mining. It argues that linking ‘sustainable finance’ with rigorous ‘responsible mining’ standards is essential for ensuring that the massive investments flowing into the extraction, processing, and refining of these minerals contribute positively to the sustainable development of both host countries and importing nations. The report calls for managing demand through circular economy and resource efficiency policies alongside ethical production reforms.
This report is strategically important for India, which is highly dependent on imports of these critical minerals for its Electric Vehicle (EV) and renewable energy goals. It informs domestic policy on securing ethical supply chains, setting environmental, social, and governance (ESG) standards for Indian investors, and developing a responsible domestic mining sector.
What are Energy Transition Minerals and why is their supply a risk? → Energy Transition Minerals are metals like lithium, copper, nickel, cobalt, and graphite, which are vital components for low-carbon technologies like electric vehicle batteries, solar panels, and wind turbines. Their supply presents a risk because the rapid, large-scale extraction required often bypasses environmental and social safeguards, threatening local communities and ecosystems globally.
Follow the full report here: https://www.unep.org/resources/report/financing-responsible-supply-energy-transition-minerals-sustainable-development