The United Nations Environment Programme (UNEP) has called for sweeping reforms in global mining finance, governance, and regulation to ensure that the accelerating demand for energy transition minerals is met responsibly and sustainably.
The appeal was made in a new report titled ‘Financing the Responsible Supply of Energy Transition Minerals for Sustainable Development’, released on Thursday and developed by UNEP’s International Resource Panel (IRP).
The report highlights that mineral extraction now accounts for 50 per cent of global raw material use, up from 31 per cent in 1970, underscoring the urgent need to align mining practices with environmental and social standards.
As the global push for clean energy intensifies, demand for critical minerals such as lithium, cobalt, nickel, graphite, and rare earth elements is projected to surge. The IRP estimates that up to $450 billion in investment will be needed by 2030, rising to $800 billion by 2040, to meet climate targets and support the transition to net-zero emissions.
Janez Potočnik, co-chair of the IRP, reiterated that the mining industry must evolve to contribute meaningfully to sustainable development.
“The demand for minerals and metals needed for the energy transition requires a mining industry that respects human rights and the environment,” he said. “Through sustainable finance, responsible mining can become the default, not the exception.”
The report outlines a roadmap for reform, including linking mining finance to Environmental, Social, and Governance (ESG) performance, integrating responsible mining into global sustainable finance taxonomies, and promoting circularity through recycling infrastructure to reduce dependence on virgin materials.
It also recommends the creation of a digital product passport for mineral commodities, embedding ESG data to enhance transparency and traceability.
To support equitable development, the report proposes the establishment of a Mining Sustainable Development Fund, financed through a global levy on mining companies.
It also calls for strengthening ESG capacity in artisanal and small-scale mining operations through improved licensing, access to finance, and transparency measures. Government-backed certification schemes and incentives are encouraged to reward companies and communities that adhere to responsible mining practices.
UNEP further advocates for stronger international cooperation between mineral-producing countries and importing nations to ensure mutual benefit and fair resource governance.
The report positions responsible mining finance as a cornerstone of the global clean energy transition, urging policymakers, investors, and industry leaders to act decisively in reshaping the future of mineral supply chains.
