ECOSOC FfD Forum side event: Domestic resource mobilization through trade: adding value to critical minerals in developing countries while supporting the energy transition

In this event, we explore the untapped potential of critical minerals in developing countries. We look at linkages between adding value to critical mineral and economic transition while supporting a just energy transition. With the global energy transition on the rise, there's an increasing demand for these minerals, providing a unique opportunity for mineral-rich developing countries to boost their economies and achieve multiple sustainable development goals.

However, to maximize the benefits, we need to create a sustainable resource management and trade strategy that promotes domestic resource mobilization and job creation while managing environmental and social impacts. This requires building an enabling ecosystem that fosters synergistic linkages between increasing domestic value-added, achieving the energy transition, and ensuring that revenues from developing national mineral reserves contribute positively to long-term economic development, create new green jobs, and secure sustainable local opportunities. Our expert speakers will discuss the role of trade, investment, and industrial policies in this process, and how international cooperation frameworks can ensure a fair and sustainable outcome for all.

This event will explore the linkages between adding value to critical mineral in developing countries while jump-starting economic structural transformation and supporting a just energy transition. The increase in demand for critical minerals associated with the global energy transition offers trade and development opportunities for mineral-rich developing countries including least developed countries (LDCs). A strategy for sustainable resource management and trade of critical minerals can lead to high-impact initiatives for those countries achieve to SDG7 while advancing – SDG 1, 3, 5, 6, 8,9,10,11, 12, 13, 14, 15, 16 and 17. The global energy transition is already boosting demand for critical minerals, requiring an estimated $1.7 trillion in global mining investment in the next two decades. However, to capture these benefits and increase domestic resource mobilization, countries (set of countries) need to build enabling ecosystems that allow the creation of synergistic linkages between increasing the domestic value-added from the critical mineral production, generating jobs, achieving energy transition, managing social and environmental impacts (biodiversity loss, pollution, GHG emissions).

An integral treatment of trade, investment and industrial policies plays a key role in this regard. At the same time, international cooperation frameworks are to be identified to ensure the sustainable management and industrial policy of developing countries would not be done at the cost of mineral-poor developing countries. This event links well with the initiative ‘Harnessing Critical Energy Transition Minerals for Sustainable Development in Least Developed and Land-Locked Developing Countries - Just Transitions in Low Carbon Technologies’ proposed by the Secretary-General Working Group ‘Transforming the Extractives Industries for Sustainable Development’. The initiative builds on the Secretary General’s priorities to Transform the Extractives Sector for Sustainable Development.