"New mechanism could strengthen accountability of China’s mining projects" 27 February 2023

China is a vital node for global supply chains in electric vehicle batteries, solar photovoltaic equipment, and other mineral-intensive technologies necessary for a green transition. Recent developments in China suggest stronger accountability to local communities may be coming.

In November 2022, the Responsible Critical Mineral Initiative (RCI; formerly the Responsible Cobalt Initiative) and the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC) announced that they are creating a new accountability mechanism for the mining sector.

Covering the value chains of all minerals, it will be the first accountability mechanism established by a Chinese industry association allowing communities to raise concerns about the social and environmental impacts of an overseas mining project. If designed and implemented well, it will be a significant step toward closing the “accountability gap”. [...]

Will the new accountability mechanism work?

In December 2022, RCI and the CCCMC sought public input on the proposed accountability mechanism. [...] The mechanism will offer a mediated dialogue process for communities and companies to negotiate redress for environmental and social impacts. Depending on the nature of the case, the process also includes fact-finding by independent experts to support the resolution of disputes. Aspects of the case process will be documented publicly. [...]

Toward greater accountability for Chinese overseas projects

RCI and CCCMC’s proposed mechanism is an important part of a larger move toward accountability for Chinese overseas investments. In June 2022, the China Banking and Insurance Regulatory Commission (CBIRC) published Green Finance Guidelines that require Chinese banks and insurers to set up their own accountability mechanisms to hear and address concerns from impacted communities overseas. [...]