Sensing the fact that while a low-carbon future is key for the world's future, it is also crucial that strategic minerals for clean energy technology are sourced responsibly. That's why the World Bank has set up the $50 million Climate-Smart Mining Facility. Pictured is a solar array installed in Rohertek, Bangladesh in this file photo from October 12, 2016. (Photo Credit: Dominic Chavez/World Bank/Flickr)
- The World Bank has introduced a new facility worth $50 million to be deployed over next 5 years in promoting sustainable and climate-smart initiatives to source minerals and metals for clean energy technologies
- Along with partners Government of Germany and mining companies Rio Tinto and Anglo American, the Climate-Smart Mining Facility will focus on resource-rich developing nations and emerging economies to go in for sustainable extraction and processing of minerals and metals
- Through the facility, the bank aims to help target nations implement sustainable and responsible strategies and practices across the supply chain, as well as create regulatory and legal framework
World Bank Approves $500 Million For Ethiopia’s National Electrification Program; To Be Disbursed Through IDA, Funds To Be Used For Solar PV Deployment & Closing Gender Gap, Among Others
(07. April 2021)
Global Infrastructure Facility Approves $1.5 Million Funding For World Bank To Help Vietnam Prepare Solar Competitive Auction Pilot Program
(02. January 2020)
Haitian Government & World Bank Launch $17.22 Million Off-Grid Electricity Fund To Bring Renewable Energy Solutions To Locals; Bamboo Capital Partners Appointed International Fund Manager To Work In Partnership With FDI
(26. May 2019)
The World Bank has established a $50 million unique fund to support sustainable and climate-smart initiatives to source minerals and metals used in clean energy technologies including wind and solar power, along with batteries for energy storage and electric vehicles.
Basis the findings of its report The Growing Role of Minerals and Metals for a Low-Carbon future, the bank concluded that a low-carbon future will be significantly more mineral intensive than a business-as-usual scenario. It estimates that by 2050, global demand for ‘strategic minerals’ as lithium, graphite and nickel will shoot up by 965%, 383% and 108%, respectively.
The solar PV industry already today accounts for 7% of global silver demand in the world. And the industry is quickly growing. However, a solar PV module requires not just silver, but also aluminium, silicon, tin, lead, copper and glass.
It fears that in the absence of climate-smart mining practices, negative impact of mining will end up impacting vulnerable communities and environment. Hence, the Climate-Smart Mining Facility will encourage sustainable extraction and processing of minerals and metals with focus on resource-rich developing nations and emerging economies.
Designed as a multi-donor trust fund, the facility has found partners in the German government and private mining groups Rio Tinto and Anglo American. It will help the target nations implement sustainable and responsible strategies and practices across the supply chain. Governments in these nations will be enabled to build a robust policy, regulatory and legal framework for this business segment.
To be deployed over a 5-year period, the $50 million facility will look into supporting projects that integrate renewable energy into mining operations, promoting forest smart mining, recycling of minerals and supporting strategic use of geological data for mineral rich regions.
Several mining companies across the world are looking at reducing their carbon footprint by way of sourcing solar or wind power for their operations as Fitch Solutions Macro Research reported in its September 2018 study on the subject (see Mining Industry To Go Solar PV & Wind). The World Bank facility goes a step further to ensure mining of minerals and metals required to develop clean energy technologies are themselves extracted and processed with minimal impact on the environment or communities.