The European Union is waking up to the strategic importance of critical minerals for a sustainable future. However, overlooking environmental damage and human-rights violations in the mining sector could undermine Europe’s ambitions to secure raw materials and drive the green transition.
Environmental and Human Costs of Critical Mineral Extraction
Mining companies like Glencore have been extracting copper in Peru’s Espinar province for over a decade, with documented contamination of local water and soil. Only recently has the Peruvian government acknowledged a direct link between the company’s operations and pollution affecting local communities. Indigenous populations remain largely uncompensated, highlighting the social and environmental risks that come with rapid mineral extraction.
Demand for copper, lithium, cobalt, and other critical minerals has surged as green technologies expand. Yet production remains concentrated in a few countries. China, for instance, dominates more than 70% of rare-earth mining and half of global processing for graphite, cobalt, lithium, and manganese. The war in Ukraine has reinforced European concerns about relying on a single dominant supplier.
The EU’s Response to Global Competition
European Commission President Ursula von der Leyen described the “race” to control clean-energy technologies while unveiling the EU’s Critical Raw Materials Act. Alongside the Net-Zero Industry Act, these measures aim to reduce EU dependencies on imported minerals and mirror U.S. initiatives like the Inflation Reduction Act, which seeks to expand domestic critical-mineral production.
The global recognition of critical minerals’ role in the energy transition has also grown. The International Energy Agency held its first-ever global summit on these materials, while UN Secretary-General António Guterres emphasized sustainable extraction at COP28, calling for fair, environmentally responsible mining practices.
Balancing Speed and Sustainability
Mining is indispensable to the energy transition, but ignoring environmental and social standards risks undermining Europe’s climate and raw-material strategies. Guterres warned against repeating historical patterns of resource exploitation in developing countries and announced a new advisory panel to develop voluntary sustainability guidelines for the sector.
Similarly, the Minerals Security Partnership—an alliance of wealthy nations—aims to improve environmental, social, and governance (ESG) standards globally. While valuable, voluntary systems alone cannot guarantee compliance. Past failures, like the Brumadinho dam collapse in Brazil and arsenic contamination at a BMW cobalt supplier in Morocco, illustrate the limits of certification frameworks.
Strengthening EU Oversight and Supply Chains
The EU’s Critical Raw Materials Act seeks partnerships with resource-rich nations and promotes strategic projects in mining, processing, and recycling. However, outsourcing compliance monitoring to private certifiers could compromise standards. Stronger enforcement mechanisms, such as the proposed Supply Chain Due Diligence Directive, are essential. Extending due diligence obligations to financial firms is also critical given their influence in funding extraction projects.
Active EU involvement in negotiating a UN Binding Treaty on Business and Human Rights is crucial to prevent multinational companies from harming communities and ecosystems. Europe must also consider demand-side measures. Industries like automotive, construction, and transport are major drivers of mineral consumption. By investing in energy-efficient public transport, encouraging smaller vehicles and batteries, and fostering circular-economy practices, the EU can reduce raw-material demand while supporting sustainable growth.
Reducing Consumption to Mitigate Environmental Impact
The Intergovernmental Panel on Climate Change emphasizes the need to lower material consumption to limit global warming. Extracting and processing minerals like iron, aluminum, copper, zinc, lead, nickel, and manganese already accounts for roughly 7% of global greenhouse-gas emissions, according to the OECD. A strategic focus on reducing demand, alongside sustainable extraction practices, can lessen environmental harms while building a resilient, independent EU supply chain.
Toward a Resilient and Responsible Mineral Strategy
By combining stricter due-diligence requirements, sustainable sourcing partnerships, and demand reduction measures, the EU can secure a reliable supply of critical minerals without repeating past mistakes. Responsible, environmentally conscious mining and strategic industrial planning will be key to Europe’s ability to lead the clean-energy transition while safeguarding communities and ecosystems worldwide.
Europe has a chance to set the standard for sustainable resource management—if it moves decisively and balances speed with responsibility.
