"Responsible mineral supply chains for a globally just and social-ecological transformation of the economy"

[...] Introduction

For a globally just and social-ecological transformation of the economy, technologies are required, for example wind and solar energy, green hydrogen technology, new drive technologies, and digitalisation. Mineral resources are needed for all these technologies – and demand for them is continuing to grow. The extractive sector is therefore of critical importance. The sector is equally vital to the implementation of the 2030 Agenda for Sustainable Development and the Paris Agreement. [...]

With this paper, the [The Federal Ministry for Economic Cooperation and Development] BMZ makes a contribution to a responsible and coherent raw materials policy for Germany. It focuses on the following objectives:

• More legal certainty in resource-rich countries through better resource governance and transparency

→ The BMZ supports its partner countries in building transparent and efficient governance institutions for the extractive sector – which also benefits German companies.

→ The BMZ advocates for improved transparency of financial flows in this sector.

• More value creation in resource-rich partner countries by supporting more local production

→ At present, raw materials are sourced from a diverse range of countries – but intermediate products mostly come from China. More local value creation benefits resource-rich mining countries and gives German companies more choice.

→ The BMZ promotes training for skilled workers in the mining sector, both for extractive operations and for suppliers of mining technology, vehicles, energy and services. This promotes industrial development and has important employment effects. [...]

• More responsibility along international mineral supply chains

→ The BMZ is involved in developing binding regulations on due diligence at German, European and international level. It supports partner governments and German companies in implementing mandatory sustainability standards in the areas of the environment and human rights, including via multi-stakeholder partnerships. [...]

→ The BMZ contributes to enhanced traceability of raw materials.

→ The BMZ promotes participation and empowers human rights and land rights defenders, rights-holders and their civil society and trade union representatives to know and claim their rights, e.g. via governmental or company-based grievance mechanisms.

With these measures, the BMZ makes a contribution to a responsible and coherent German raw materials policy which, together with partner countries, leverages the development potential of the extractive sector for the implementation of the 2030 Agenda, promotes a globally just energy transition and helps to secure the supply of raw materials for Germany’s economic transformation. [...]

Critical Raw Materials Act
With the European Critical Raw Materials Act (EU CRMA), the European Commission adopted a package of measures in 2024 to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of raw materials. [...] Development policy objectives must be safeguarded in the implementation of the Strategic Partnerships, compliance with sustainability standards must be guaranteed, and potential for local value creation in third countries must be promoted. In order to achieve these goals, implementing companies must comply with sustainability requirements. From a development policy perspective, outsourcing of corporate responsibility to certification initiatives should be viewed critically.

[...]