Responsible resource extraction worldwide

Project description

Title: Extractives and Development III sector programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)​​​​​​​
Country: worldwide​​​​​​​
Overall term: 2015 to 2024

Gold and silver mine in industrial large-scale mining in Peru  ©GIZ/Rolando Suaña

Context

For many developing countries and emerging economies, raw materials are one of the most important sources of income. This can be harnessed to help achieve the goals of the 2030 Agenda, but only if the countries’ wealth of natural resources also benefits the local population, for example through taxes, added value or jobs. The extraction and export of raw materials all too often have negative impacts on the environment, human rights, peace and security. This phenomenon is known as the resource curse.

A woman mines zirconium in artisanal small-scale mining in Sierra Leone  ©GIZ/Michael Duff

But there can be no energy and transport transition without additional raw materials. Their extraction must therefore be carried out in a fairer and more climate-friendly way and not at the expense of the environment, human rights and peace. Challenges faced by this sector include responsible raw material extraction and due diligence obligations along the raw material supply chains.

Objective

Tried-and-tested approaches to good governance in the extractive sector are discussed and applied internationally.

Drone photo of an open-pit diamond mine in Sierra Leone  ©GIZ/Michael Duff

Approach

The project advises the Federal Ministry for Economic Cooperation and Development (BMZ). Along with the Federal Institute for Geosciences and Natural Resources (BGR) it provides support for enquiries on current topics and analyses trends in the international debate on resource governance.

Topics covered include environmental and climate protection, for example incorporating the use of renewable energy into mining activities in order to make raw material extraction more climate sensitive. Another priority area addresses the design of supply chains, specifically how to make them more sustainable and responsible. The project supports the exchange of expertise with other stakeholders to promote social and environmental standards in the sector.

Last update: April 2022