Joint Initiative to Strengthen Responsible Investments in Critical Minerals

The Inter-American Development Bank (IDB) and the European Union (EU) have launched a joint initiative to strengthen the enabling conditions for responsible investments in developing critical minerals and their value chains.

Objectives

The objective of the program is to support inclusive economic growth in Latin America and the Caribbean, enhance sustainable mining practices, and facilitate the global energy transition.

Program Details

The program, financed by a Euro 6.3 million grant from the EU’s Latin America and Caribbean Investment Facility, will leverage an additional Euro120 million in IDB investments for Critical Raw materials-related projects in several countries in the LAC.

Key Activities

Key activities will improve mining sector governance, strengthen geological knowledge, and advance the sustainable extraction of critical raw materials such as copper, lithium, and rare earth elements.

Environmental and Social Challenges

These materials are essential for the global energy transition. The initiative aims to address the environmental and social challenges associated with their production, ensuring mining activities support decarbonization efforts and sustainable development.

Partnership and Alignment

The program is designed to close key policy, governance, and capacity gaps, aiming to boost the mining sector’s contribution to sustainable development, particularly in the context of global energy transition goals.

Quotes

“The responsible mining of Critical Raw Materials plays a key role in the green energy transition and can bring substantial economic benefits to partner countries in Latin America and the Caribbean,” said Claudia Gintersdorfer, EU Ambassador to Chile.

“The initiative with the IDB will ensure that our partners receive substantial investments in developing critical minerals and their value chains, thereby boosting businesses, cooperation, and the green transition simultaneously,” said Claudia Gintersdorfer, EU Ambassador to Chile.

Conclusion

The joint initiative between the IDB and the EU is a significant step toward achieving the Sustainable Development Goals (SDGs) and addressing global climate challenges by encouraging responsible mining practices and supporting the global energy transition.

FAQs

Q: What is the objective of the program?
A: The objective of the program is to support inclusive economic growth in Latin America and the Caribbean, enhance sustainable mining practices, and facilitate the global energy transition.

Q: What are the key activities of the program?
A: Key activities will improve mining sector governance, strengthen geological knowledge, and advance the sustainable extraction of critical raw materials such as copper, lithium, and rare earth elements.

Q: What are the environmental and social challenges associated with the production of critical raw materials?
A: The initiative aims to address the environmental and social challenges associated with their production, ensuring mining activities support decarbonization efforts and sustainable development.

Q: What is the significance of the program?
A: The program is a significant step toward achieving the Sustainable Development Goals (SDGs) and addressing global climate challenges by encouraging responsible mining practices and supporting the global energy transition.