Financing the Responsible Supply of Energy Transition Minerals for Sustainable Development

United Nations 3 months ago

The finance sector can play a critical role in promoting responsible mining, particularly in the context of the rising demand for energy transition minerals such as lithium, cobalt, and rare earth elements. These minerals are essential for the global shift to sustainable energy systems, and the massive investments required, from exploration and extraction to processing and refining, present a unique opportunity to drive transformative change.   Supplying the energy transition minerals at the scale envisaged will require a substantial increase in investment in the mining and processing industries. However, if this growth in mining is implemented according to current mainstream practices, it will result in considerable social and environmental damage, negatively affecting the local communities and environment where the mines are located. This assessment report covers the major issues that will need to be addressed if the low-carbon energy transition is to be supplied with the minerals it needs in a timely and responsible manner.  The report focuses on how the financing of the extraction of these minerals should be reformed to help bring about their environmentally and socially responsible production, and the equitable distribution of the resulting financial and other economic and social benefits. It explores the scale of the challenge, in terms of both increasing the supply of primary metals, and the need to manage the demand for them through circular economy approaches and resource efficiency policies.  Finally, it describes how ‘sustainable finance’ combined with ‘responsible mining’ could lead to the emergence of a mining industry that contributes to the sustainable development of local communities and countries that host the mines, and the countries that import them for their low-carbon technologies, as envisaged by the Sustainable Development Licence to Operate (IRP 2020).
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layersDaily Sustainability Digest

Published about 3 hours ago

The UK government’s recent consultation response marks a defining moment for sustainable construction, setting the course for a whole life carbon assessment framework to regulate industrial and building materials. By mandating that developers account for embodied carbon and the carbon footprint of construction throughout the full building lifecycle, policy is moving away from fragmented reporting and toward transparent measurements. The emphasis on net zero whole life carbon highlights the urgency of confronting emissions not just during occupancy, but across extraction, transport, fabrication, and end-of-life reuse in construction. This signals growing recognition that environmental sustainability in construction depends on comprehensive life cycle thinking in construction, rather than selective carbon accounting.

The rapid decarbonisation of the UK electricity grid is reshaping design expectations. With clean sources now powering the majority of the national supply, sustainable building design increasingly requires integration with low carbon energy infrastructure. Low embodied carbon materials and renewable building materials are finding fresh relevance in regeneration projects, such as the retrofitting of Wakefield’s Grade II-listed Crown Court. These examples illustrate how eco-design for buildings can embed energy-efficient strategies in both heritage conservation and contemporary low carbon building practice. They also reinforce the importance of life cycle assessment and building lifecycle performance as the technical foundation for resilient, net zero carbon buildings.

Financial innovation is becoming an enabler of green construction, with UK pilots directing capital toward eco-friendly construction and sustainable building practices. Green financial mechanisms promise to align sustainable urban development with long-term life cycle cost efficiencies, countering hesitation about higher upfront expenses. Instruments linked to environmental product declarations (EPDs) and sustainable material specification offer developers clearer access to capital tied to proven standards such as BREEAM and its upcoming BREEAM v7 update. This evolution connects lifecycle assessment metrics with lending criteria, incentivising the supply chain to reduce embodied carbon in materials and to apply circular construction strategies that promote resource efficiency in construction.

Policy signals are reinforcing this trajectory. Plans to expand solar installations on schools and hospitals across the UK could accelerate low carbon design and promote net zero carbon trajectories by leveraging the scale of public assets. Such strategies build momentum for integrating green building materials and green infrastructure into everyday practice. Beyond operational savings, these initiatives anchor renewable deployment within sustainable architecture, demonstrating the viability of carbon neutral construction when public demand drives private sector innovation. Increased investment in green building products and eco-design for buildings creates pathways towards decarbonising the built environment at pace.

Vigilance remains essential. Controversies over questionable carbon offsetting models underscore the dangers of equating carbon credits with real-world reductions in embodied carbon. For the industry, credibility depends on transparency in measuring the environmental impact of construction and on prioritising low carbon construction materials and sustainable design over symbolic commitments. Demonstrating carbon footprint reduction through verifiable lifecycle assessment ensures that ambitions for circular economy in construction and sustainable material specification translate from target-setting into measurable impacts.

Sustainable construction is becoming embedded across policy, finance, and practice. By uniting whole life carbon assessment with robust eco-friendly construction methods, the sector can accelerate towards net zero whole life carbon buildings that balance life cycle cost efficiency with systemic carbon footprint reduction. Success will depend on adopting a circular economy approach, integrating sustainable building practices across design, operation, and demolition, and proving that architecture and engineering can achieve both environmental responsibility and economic resilience. This transformation moves beyond symbolic plaques and towards measurable change across the entire building lifecycle.

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