Financing, Anticorruption and Civic Freedom: Essentials for Just and Equitable Transition Mineral Supply Chains
At the COP29 climate conference, NRGI president and CEO Suneeta Kaimal shared three key insights for what's needed as the world increasingly demands transition minerals. These are her remarks.
Excellencies, civil society leaders and friends: It was a great privilege to share the knowledge and experience of civil society as part of the UN Panel on Critical Transition Minerals.
At the Natural Resource Governance Institute our mission echoes the clarion call of the UN Panel: Justice requires change. Changing whose voice determines whether, where and how to extract. Changing for what purpose and under what terms mining occurs. Changing who benefits and the power imbalances and structural inequities that persist. In just four months, the panel initiated much needed change in three important ways.
First, the actionable recommendation to advance value addition, benefit sharing and economic diversification responded to the question we hear most often from Global South producers: how will this mining boom be different for us?
To enact this recommendation, we need resources for reform. The climate finance goal to be agreed at COP29 must include concessional finance for Global South transition mineral-producing countries to support viable value addition facilities. To address energy, infrastructure and skilled labor bottlenecks and enable economic diversification. And to ensure that the benefits of increased mineral circularity are shared equitably.
Second, the panel recognized that corruption harms both people and the planet. Our research shows that corruption undermines social and environmental protections and delays urgently needed transition mineral production—sometimes for years.
The actionable recommendation on traceability can help by enabling regulators, investors and end-users to scrutinize human rights and environmental practices, conflict of interest risks, and economic fairness across the value chain. Now, we need leadership from member states and to transform voluntary standards into binding action. The Colombian government has demonstrated such initiative in calling for an international agreement on traceability. We encourage others to follow their lead.
Lastly, the panel enshrined the centrality of human rights and multi-stakeholder participation to a new mining paradigm. As panel members, we benefitted from the collective expertise, audacity and relentless optimism of more than 300 civil society organizations.
However, civil society around the world is under threat. The International Center for Not-for-Profit Law found that 87 percent of recent legal initiatives impacting civic space are restrictive. In my own country, the United States, ascendant powers have vilified and threatened the media. And here in Azerbaijan authorities have wrongfully imprisoned advocates for fair and transparent governance of natural resources. We call for their immediate and unconditional release.
The work of our panel is a start, not an end. We commit to bringing our knowledge and networks to transform mining governance. To hold us all accountable, we welcome the Secretary-General to report on the implementation of the Panel’s guidance in one year’s time at COP30. Let us together demonstrate the will and resources to put equity and justice at the heart of climate action.
UN Secretary-General Antonio Guterres, heads of state, and the executive director of the International Energy Agency also spoke at this event.
Dialogue on Investing on Diversifying Critical Minerals Value Chains for Accelerating the Energy Transition
Baku, Azerbaijan
The growing energy transition and demand for raw materials in clean energy technologies require investment beyond extraction. It also needs diversification and value addition in midstream and downstream activities to ensure fair and just benefits for resource owners, predominantly in developing countries.
The dialogue will:
- Examine strategies to diversify the CETM supply chain, as the market is expected to tighten by the end of the decade, and enhance the critical energy transition minerals value chain in developing countries. This aims to meet the growing demand driven by clean energy technologies, ensuring inclusiveness and sustainability. Supporting CETM-producing developing countries to add value to their minerals is crucial for enabling them to break free from the constraints of commodity dependence and achieve long-term sustainable development. By focusing on upstream, midstream, and downstream diversification, while addressing environmental challenges, these countries can develop a more integrated and resilient minerals value chain that not only increases their share of the global market but also enhances local economic growth. Additionally, side-stream diversification – leveraging the by-products and associated industries of sustainable mining can further create new opportunities across various sectors. Through value addition and diversification, the entire value chain becomes more resilient and scalable, better equipped to meet global demand fluctuations.
- Underscore that sustainable finance is essential to developing the infrastructure and capacity needed to responsibly exploit, process, and add value to these minerals and develop related industries along the value chain. Investment is essential to promote this diversification, as it facilitates the development of infrastructure, technology, and skills. With these elements in place, resource rich countries can move beyond mere extraction and into the processing and manufacturing of value-added products, such as batteries and renewable energy components, within their borders. Participants will discuss the importance of creating financial mechanisms that support long-term investments in mining, processing, and industrial infrastructure in developing countries.
- Explore tailored investment approaches that consider the unique challenges of each country, particularly those with rich mineral resources but lacking the infrastructure and stable regulatory environments necessary to attract investment.
Featuring NRGI's
Antonio Hill
Advisor
COP29 and Transition Minerals: Three Opportunities to Move the Needle
The human and environmental costs of mining are no secret; they underscore the vital importance of transformation in the sector. And demand for minerals essential to production of solar panels, wind turbines, and electric vehicles mean that it more urgent than ever for international actors to ensure that mining’s dark history is not repeated as the energy transition gathers momentum.
Recognizing this urgency, UN Secretary-General António Guterres at last year’s COP28 called for a high-level panel to address the challenges of mineral governance, with the UN publishing the panel’s guidance in September 2024.
The panel’s seven guiding principles and recommendations set a new course for the governance of mineral supply chains, one that promises equitable benefit-sharing with, and economic opportunities for, the people and countries at the beginning of the chain. The journey will be long, and the scope of needed international policy action is broad, from a reset to customary benefit-sharing arrangements between governments and companies to upgrading anticorruption practice to boosting circularity and establishing “no-go zones” to protect nature.
With COP29 underway in Baku, Azerbaijan, parties to the UN Framework Convention on Climate Change have three opportunities to spur and complement progress toward minerals governance that drives sustainable and inclusive development:
Link minerals governance priorities to renewable energy scale-up
In the first global stocktake of progress toward the aims of the Paris Agreement, at COP28, countries called for a tripling of renewable energy capacity by 2030. As countries move to answer this call over the second half of this “critical decade,” they should work to align and strengthen linkages between the agenda set out by the UN minerals panel and decisions and actions agreed through the UN climate process. The obvious starting point is reference to the guiding principles set out by the UN panel in all future references to the renewables scale-up, starting at COP29.
There’s also potential to integrate or cross-reference reporting on traceability, transparency and accountability across the mineral value chain with related reporting on progress towards tripling renewable energy capacity. And, as efforts to boost material efficiency and circularity approaches gather steam, the countries party to the Paris Agreement could link these to emissions reduction measures in future national climate targets (nationally determined contributions, or NDCs) and related transparency mechanisms.
Provide for minerals benefit sharing within the new climate finance goal
Agreement on a new climate finance goal (the “new collective quantified goal on climate finance” or NCQG) is the main goal countries are working toward at COP29. Negotiations on this agenda item have been underway for two years, with one important debate centering around the scope and intended purpose of climate finance.
In their latest report ahead of COP29 the finance negotiation co-chairs noted the opportunity to include in the overall finance goal “… sub-goals reflecting specific outputs or outcomes, such as the target to triple renewable energy capacity globally…”. The relevance of investments in greater benefit-sharing, value addition and economic diversification in low- and middle-income mineral-producing countries is a compelling reason to include it in the list of priorities eligible for climate finance under the new goal.
Cement enhanced minerals governance in just transition pathways
The one place where transition minerals are specifically referenced in the UN climate process is the Just Transition Work Program (JTWP). The chairs’ report from the most recent JTWP dialogue already contains several references, including to unequal benefits (“particularly regarding the extraction of critical minerals and localization of profits arising from that extraction,” (para. 34)), technology cooperation and transfer (para. 174), and even the UN panel report and its guiding principles, specifically (also para. 174).
Less a politically charged negotiation and more a space for mutual exchange and learning on the technical aspects of building and support just transitions, many Global South countries see this work program as an important pivot to make the UN climate convention and its Paris Agreement more responsive and aligned with their sustainable development priorities. By fully integrating the UN panel’s guiding principles as well as its actionable recommendations in the work program’s proceedings going forward, the countries party to the Paris Agreement can help ensure minerals governance features in just transition strategies and plans in relevant national contexts—and provide the basis for stronger linkages with the UN climate regime as renewable energy capacity is scaled to deliver on the Paris/1.5°C goal.
At NRGI we look forward to engaging a range of stakeholders in Baku and beyond to explore these and other potential linkages toward a just and equitable transformation of transition minerals governance.
NRGI's Suneeta Kaimal Spotlights the Way Forward on Transition Minerals
In Baku, Azerbaijan, for COP29, NRGI's president and CEO identified three key changes called for by the UN Panel on Critical Energy Transition Minerals.
Enabling a People-Centered Energy Transition with Renewables and the Mining Industry
Baku, Azerbaijan
This event will explore the need for collaboration between the renewables and mining sectors to achieve the 1.5-degree climate target responsibly, focusing on sustainable supply chains that prioritize people. Following recent global commitments to triple renewables by 2030, the session will explore how these industries can jointly support a just and equitable energy transition, spotlight successful partnerships, and identify policy needs for sustainable growth in key markets.
Featuring NRGI's
Antonio Hill
Advisor
Financing the Transition in Oil-Producing Low- and Middle-Income Countries: Spotlight on Colombia, Mexico and Nigeria
Baku, Azerbaijan
This session shed light on how to finance the transition in Colombia, Mexico and Nigeria—important oil- and gas-producing countries whose national and local economies rely on this industry to stay afloat and provide essential public services.
Expert speakers shared insights on the latest COP29 negotiations, with a focus on the transition finance needs in these countries, where national oil companies are major players. Also known as the ‘hidden half’ of the world’s oil and gas industry, national oil companies produce around 55 percent of the oil and gas consumed globally and are responsible for a significant proportion of global emissions. However, their role in achieving climate objectives have largely remained on the sidelines of climate finance negotiations, debates and campaigns.
Watch this press briefing for insights on what the climate finance goal must include to ensure a fair and equitable transition in these important oil producing countries.
Speakers:
- Fernanda Ballesteros leads NRGI’s work in Mexico and is a member of the organization’s energy transition coordination group. Ms Ballesteros discussed the prospects for the energy transition in Mexico, against the backdrop of the new administration under President Claudia Sheinbaum, a climate scientist, and the substantial reform needs of Pemex, Mexico’s national oil company.
- Enebi Opaluwa leads the natural resource and climate governance program at BudgIT Foundation, where he coordinates research, analysis and advocacy on resource governance, energy policy and climate finance. Mr Opaluwa highlighted key issues relevant to climate finance and Nigeria’s national oil company, NNPC, which relies on financing and technical assistance to decarbonize.
- Vance Culbert is a senior policy advisor with IISD’s Energy Program. He focuses on solutions for an equitable transition away from fossil fuel production and aligning the energy sector with Paris Agreement targets. Mr Culbert discussed Ecopetrol’s economic challenges, including its credit rating downgrade as it seeks to respond to the Colombian government’s call to shift away from fossil fuels.
- Bronwen Tucker is the global public finance co-manager at Oil Change International, where she focuses on shifting public finance and subsidies toward a fair and 100% renewable future. Ms Tucker provided an update on the latest developments in the negotiations relevant to financing the energy transition in oil-producing low- and middle-income developing countries.
Featuring NRGI's
Fernanda Ballesteros
Mexico Country Manager
Gabriela Flores Zavala
Communications Strategy Consultant
Leveraging NDCs for the Transition Away from Fossil Fuels & the Protection of Biodiversity
Baku, Azerbaijan
Beyond driving climate catastrophe, fossil fuel extraction exposes producing countries to transition risks and threatens over 800 protected areas worldwide. This event explores how UNFCCC Parties can use NDCs to support the transition away from fossil fuels, with multiple benefits for people and planet.
Speakers:
- Kjell Kühne, Director, Leave it on the ground (LINGO)
- Soumya Dutta, Public Advocacy Initiatives for Rights and Values in India (PAIRVI)
- Elissama Menezes, Say No to LNG
- Ricardo Baitelo, Institute for Energy & Environment (IEMA)
- Fernanda Ballesteros, Mexico Country Manager, NRGI
Discussants:
- Livia Duarte, State Deputy, Pará, Brasil
- Cecilia Requena, National Senator, Bolivia
- Juan Carlos Bedoya, Advisor, Ministry of Mines and Energy, Colombia
Moderator:
- Antonio Hill
In partnership with Instituto de Energia e Meio Ambiente (IEMA), Leave It in the Ground Initiative (LINGO), Say No to LNG and PAIRVI.
Explore the event presentation.
Featuring NRGI's
Fernanda Ballesteros
Mexico Country Manager
Antonio Hill
Advisor
Equity and Justice in Climate Action: Advancing Actions from the UN Panel on Critical Energy Transition Minerals
Baku, Azerbaijan
Following the formal launch of the UN Secretary-General’s multi-stakeholder Panel on Critical Energy Transition Minerals report on 12 November, this event will identify priority next steps to ensure the international community builds on the panel’s recommended actions and supports greater equity and justice in mining for the energy transition.
Over the course of a moderated conversation between selected UN panel members and actors driving global climate action, the event will explore the following questions:
- How can national climate strategies and plans, including especially NDCs and LT-LEDS, and climate finance advance efforts to boost equitable benefit sharing, value addition and economic diversification in developing producer countries?
- What could the UNFCCC process contribute to improving the governance of transition minerals, or what institutional advances are needed in other fora to ensure good governance?
- How could the panel’s pioneering call for a process aimed at reaching agreement on “equitable targets and timelines for the implementation of material efficiency and circularity approaches along the entire life cycle of critical energy transition minerals” be supported through global efforts to drive the climate and energy transition?
Speakers:
- Suneeta Kaimal, President and CEO, NRGI
- Ditte Jørgensen, Director-General Energy, European Commission
- Anabella Rosemberg, Senior Advisor, Just Transitions, CAN International
- Kuda Manjonjo, Just Transition Associate, PowerShift Africa
- Camila Mercure, Climate Policy Officer, FARN
In partnership with Climate Action Network International (CAN-I).
Featuring NRGI's
Suneeta Kaimal
President and Chief Executive Officer, NRGI Governing Board ex officio
Beyond Extraction: Developing Around Critical Minerals in the Global South
Baku, Azerbaijan
COP28’s pledge to “triple the world’s installed renewable energy generation capacity” has put transition minerals at the heart of climate action. Swaniti Global, in partnership with India Climate Collaborative, is hosting a roundtable to discuss the economic and social potential of mining transition minerals in Global South countries, as well as the opportunities for collaborating in setting an agenda for fair and equitable access to these minerals.
By invitation only.
Featuring NRGI's
Suneeta Kaimal
President and Chief Executive Officer, NRGI Governing Board ex officio
Resourcing the Energy Transition with Justice and Equity: Advancing the Recommendations of the UN Secretary-General’s Panel on Critical Energy Transition Minerals
Baku, Azerbaijan
In September 2024, the UN Secretary-General’s multi-stakeholder Panel on Critical Energy Transition Minerals announced principles and recommended actions to advance a "new paradigm on mining" that centered justice and equity in the race to secure minerals critical to the scale up of renewable technologies. This high-level launch event explored the panel's guidance and next steps.
Speakers included United Nations Secretary-General Antonio Guterres, International Energy Agency executive director Fatih Birol, and NRGI president and CEO Suneeta Kaimal.
Featuring NRGI's
Suneeta Kaimal
President and Chief Executive Officer, NRGI Governing Board ex officio
Efforts to Reduce Methane Emissions Cannot Trample on the Poor
NRGI's Suneeta Kaimal spoke at the International Energy Agency and COP29 Presidency's "Turning Methane Pledges Into Action" on 24 September. These are her remarks.
The perspectives of low- and middle-income oil- and gas-producing countries are absolutely critical to the global conversation about methane emissions reduction.
First, regarding transparency, we must build the public debate and accountability on methane reduction within producer countries. This is an exceptionally powerful tool for ensuring that policies and commitments actually translate into action.
Second, national oil companies account for more than half of the world’s petroleum production, and that number is likely to increase. But we also know that many NOCs are not delivering on their commitments. One of these is Mexico’s Pemex. They have multiple commitments to bring down emissions. They're backed by a legal framework, but we need greater transparency, incentives and financing to be able to deliver on that.
Lastly, we must ensure that efforts to reduce methane emissions don't inadvertently trample on the poor. We know that addressing methane reduction is essential for the capacity of these low- and middle-income producing countries to trade in the global market, given consumer market practices and policies such as the EU methane regulations, but we need technical, financial and political support to ensure that we address methane initiatives and do not deepen long standing inequities in our energy and economic system.