Report

New Tech, New Deal: Mining policy options in the face of new technology

New technologies related to digitization, big data, and automation are transforming the the global mining sector in many ways. This report presents policy options to promote good governance as the industry evolves.

September 13, 2021

The large-scale mining sector is on the cusp of a major transition. This is part of the broader Fourth Industrial Revolution in which new technologies transform industrial activities so they are more connected, information-richer, and more efficient in the use of labour and inputs. While relatively late to the game, mining stands to be changed as fundamentally as any other sector.

The results are already evident in terms of more efficient (and therefore usually more climate friendly) operations and fewer workplace accidents. However, in some cases there will be fewer people employed and fewer local goods and services purchased, even if new jobs are created. Those living closest to mine sites may face the most acute risks to livelihoods, with the slimmest chances for re-employment or re-deployment.

In those cases where that is true, the traditional deal between large-scale mining companies, local communities, and host countries is thrown out of balance. Employment and procurement are the most significant and important forms of value a mine can make to its host community/region—much more important locally than taxes and disproportionately important in poorer, less diversified economies. It is more than an expectation. It represents in some sense the “payment” in return for a mine’s potential impacts on the local social fabric and the environment and the exploitation of non-renewable resources. If the mine of the future brings much less of that value to a community or a host economy, what could be the elements of a new deal that brings us back to balance?

This report explores that question. It starts by reviewing the nature of the coming technologies and their various impacts in areas such as employment, gender equality, fiscal arrangements, and artisanal and small-scale mining (ASM). It then critically assesses some of the various possible elements of a new deal and considers the impacts and possibilities for marginalized groups before offering some concluding thoughts.

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Report

Procuring Food Stocks Under World Trade Organization Farm Subsidy Rules

Finding a permanent solution

To help advance the reform agenda on food stocks vital for food security, our new report offers insights on possible ways forward on the long standing issue of public stockholding programmes at the WTO.



It focuses on five broad options to advance reforms and concludes that the interim 2013 Bali Decision (WTO, 2013) to exempt public stockholding programs from legal challenge under certain conditions could be a constructive way forward, with some technical fixes

August 27, 2021
  • The interim 2013 Bali Decision (WTO, 2013) to exempt public stockholding programs from legal challenge under certain conditions could be a constructive way forward, with some technical fixes

  • The upcoming 12th Ministerial Conference of the WTO provides members with the opportunity to find a long-lasting solution to how public stockholding programs should be notified to the WTO.

This report summarizes the current negotiating proposals at the World Trade Organization that include among others: exempting food bought at administered prices under public stockholding programs from the calculation of trade-distorting support; revisiting the external reference price in the calculation of market price support; taking into consideration excessive rates of inflation; redefining eligible production; including new programs; and expanding product coverage. The report then analyzes the evolving market and policy context, including for key commodities such as rice and wheat. Finally, it examines the advantages and disadvantages of various possible ways in which the public stockholding issue could be addressed and identifies possible ways forward.

Report details

Topic
Trade
Food and Agriculture
Project
Fair and Sustainable Trade in Food and Agriculture
Impact area
Nature
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2021
Report

Joint Ventures | IISD Best Practices Bulletin #1

Legal Tools for Responsible Investment in Agriculture Series

This bulletin highlights risks associated with joint ventures and provides guidance to agricultural investment negotiators and government lawyers on how to mitigate these risks.

August 18, 2021

In this best practices series on legal tools for responsible investment in agriculture, IISD analyzes key legal and policy issues arising from the legal instruments that states use to govern responsible investment in agriculture and food systems.

As governments increasingly look to different models for attracting and delivering private investment in agriculture, one approach that is gaining interest is the public-private incorporated joint venture (JV). The use of this model is likely to increase along with the growing focus on public-private partnerships (PPPs) for agribusiness investment.

In a JV arrangement, the public and private partners each contribute equity, share profits, and jointly manage the company. JVs are a unique project structure that carry with them unique benefits and risks, particularly for developing country governments, and in the context of agriculture.

The purpose of this bulletin is to highlight some of the key risks associated with JVs, and to provide some guidance to agricultural investment negotiators and government lawyers as to how they can be mitigated through careful legal drafting.

Report

Opportunities for Strengthening Resilience by Integrating Climate and Disaster Risk Finance and Insurance (CDRFI) in National Adaptation Plan (NAP) Processes

August 16, 2021

Climate and disaster risk finance and insurance (CDRFI) solutions can play an essential role in climate change adaptation, enabling governments, businesses, and individuals to protect their financial security in the event of shocks and providing information and incentives for improved management of risks.

National Adaptation Plan (NAP) processes will guide investments in adaptation over the coming years, whether from domestic budgets, the private sector, or international climate finance. Having CDRFI solutions better reflected in NAP processes will increase awareness of the role of these financial tools in a country’s adaptation journey while providing a basis for quickly and effectively scaling up such solutions.

The analysis presented in this report provides a better understanding of the ways in which countries are integrating CDRFI solutions in their efforts to formulate and implement NAPs—as well as the missed opportunities. This is a result of collaboration between the NAP Global Network and the InsuResilience Global Partnership (IGP) to support better integration of CDRFI solutions within NAP processes. The analysis is based on a systematic review of two types of documents: NAP documents and a sample of NAP readiness proposals to the Green Climate Fund (GCF).

Report details

Topic
Climate Change Adaptation
Project
NAP Global Network
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2021
Report

Gender-Responsive Resilience Building in the Caribbean

Understanding the role of knowledge, attitudes, behaviours, and practices in coordination mechanisms for climate change and disaster risk reduction.

Efforts to build resilience to climate change and disasters in developing countries will not be effective or sustainable if they do not take gender into consideration. Our report on knowledge, attitudes, behaviours, and practices (KABP) provides an understanding of gender-related perceptions and biases and how they play out in coordination mechanisms for climate change adaptation and disaster risk reduction.

July 29, 2021

Policies, plans, and initiatives must take into account gender differences in roles and responsibilities, access to information, resources, opportunities, and decision-making power. If they do not, there is a risk they will reinforce, exacerbate, or create new gender inequalities. 

The process of building resilience to climate change and disasters presents a unique opportunity to advance gender equality. Gender-Responsive Resilience Building in the Caribbean: Understanding the Role of Knowledge, Attitudes, Behaviours, and Practices in Coordination Mechanisms for Climate Change and Disaster Risk Reduction provides the foundation needed to determine how gender-related perceptions and biases can be challenged at the individual and institutional levels.

Based on data from nine Caribbean countries, this analysis was conducted by the International Institute for Sustainable Development on behalf of UN Women under the EnGenDER Project.

 

Report

Impacts of Climate Change Policies on Developing Country Export Markets

Climate change policies including net-zero commitments, green new deals, and circular economy plans often combine carbon-reduction objectives with a set of policy and market interventions needed to reach those goals. When implemented, these policies are likely to impact international trade, and potentially hamper the development of lower-income countries. This report takes stock of such potential impacts on goods exports of sub-Saharan African countries, least developed countries (LDCs) and low-income economies.

July 26, 2021
  • Most net-zero and circular economy plans foresee a drastic reduction of oil demand, which will affect exporters such as South Sudan, Angola, Nigeria, Chad, and Congo who rely on fossil fuels for more than 50% of their total exports—96% in the case of Chad.

  • While markets for fossil fuels will tighten, there is space for growth in markets for metals and minerals that are essential to the energy transition. The most important and valuable market is the one for non-ferrous metals such copper, aluminum, nickel, and zinc.

  • Regional trade, including intra-African trade, can offer new opportunities for diversification and is less likely to attract restrictions related to net-zero commitments or circular economy packages that are more prevalent in OECD countries or large emerging economies.

Overall, net-zero commitments and circular economy packages are likely to have significant impacts on exports of developing countries. The most immediate impact potential is on exports of fossil fuel products. The risks for agricultural products may not be as pronounced but will affect a much higher number of LDCs and African countries. Finally, countries relying on metals and minerals may benefit from increased demand associated with renewables and battery production, at least in the short to medium terms, but in the long term, demand for secondary raw materials and recycling requirements may affect export prospects.

These trends will force developing countries to accelerate their efforts to diversify their export basket and comply with new requirements in OECD countries and emerging economies. Besides technical assistance and capacity building for example under the Aid for Trade initiative, the promotion of South-South trade in the context of regional integration including the African Continental Free Trade Area offers significant prospects to offset the negative impacts associated with net-zero commitments or circular economy package and support economic diversification.

Participating experts

Report

How Can Indonesia Foster Sustainable Infrastructure Solutions that Deliver Low-Carbon Development and Bring Additional Benefits?

July 26, 2021

The policy paper analyzes how Indonesia can foster sustainable infrastructure that delivers low-carbon development and bring additional benefits. It highlights the possible contributions of sustainable infrastructure for the national low-carbon development ambitions. The paper also provides guidance to policy-makers and decision-makers to identify the opportunities and benefits of sustainable infrastructure. Lastly, it presents ways to foster investments and leverage finance for sustainable infrastructure projects.

Participating experts

Report details

Topic
Infrastructure
Nature-Based Solutions
Region
Indonesia
Project
The Sustainable Asset Valuation (SAVi)
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2021
Report

Supporting Marine Fishing Sustainably: A review of central and provincial government support for marine fisheries in Indonesia

This report provides—for the first time—an open-access database of support measures for marine fisheries by the Indonesian central government and three provincial governments (Aceh, Maluku, and North Sulawesi) based on information from government sources. It recommends an in-depth assessment of the socio-economic and environmental impacts of fuel support and support to vessel construction, modernization, or fishing equipment.

July 26, 2021
  • Central government support varies between USD 140 and USD 210 million a year, but it is unclear whether it always achieves its desired socio-economic impacts without undermining the environmental viability of the sector.

  • 50% of central government support for fisheries is provided via fuel subsidies. Preliminary evidence suggests this benefits boat owners more than low-income fishers and can encourage overfishing.

  • Provincial-level support focus on vessel acquisition, modernization, and equipment. These measures are mostly targeted at pelagic fisheries, some of which are already fished at unsustainable levels.

Indonesia’s fisheries sector is an important source of nutrition, jobs, and income domestically and plays a key role in the country’s ability to achieve sustainable development. However, a number of fish stocks, including some with high economic value, are already suffering from overfishing, and many others are fully exploited.

Sound fisheries policy is thus essential to ensure fisheries can sustainably deliver socio-economic benefits for the Indonesian population. While some government interventions play a critical role in achieving key public policy objectives such as poverty alleviation, job creation, or resource management, there is strong evidence that certain forms of support can also contribute to the buildup of excessive fishing capacity and the depletion of fish stocks.

Ensuring that public support to fisheries promotes sustainable development in Indonesia thus requires a review of support measures benefiting the sector and their potential implications from a social, economic, and environmental perspective. This report aims to contribute to an informed, evidence-based national discussion in this area by developing an inventory of support measures provided to marine fisheries and identifying specific programs that should be prioritized for detailed evaluation in the future.

Report

Toward Gender-Responsive Ecosystem-based Adaptation

Why it's needed and how to get there

A key factor for the success of ecosystem-based adaptation (EbA) initiatives is the active integration of gender considerations. By working to address gender and social inequalities, EbA initiatives can be more effective and more sustainable.

July 22, 2021

This publication is also available in Spanish. | Esta publicación está disponible en español.

Climate change and the biodiversity crisis are driving demand for actions that build the long-term resilience of societies, ecosystems, and economies. EbA uses natural systems to build the resilience of ecosystems, as well as the communities that depend on them. This process provides an opportunity to actively promote gender equality when applying a gender-responsive approach. 

Toward Gender-Responsive Ecosystem-Based Adaptation: Why It's Needed and How to Get There provides an understanding of the importance of using a gender-responsive approach to EbA. This report describes key building blocks for effective and gender-just EbA, and includes on-the-ground examples of them being put into practice. The guidance and recommendations provided by this report can help EbA practitioners and adaptation policy-makers, whether in governments, research institutions, businesses, or civil society. 

Authored by International Institute for Sustainable Development (IISD) experts, this report was made possible by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

Report details

Topic
Gender Equality
Climate Change Adaptation
Nature-Based Solutions
Region
Global
Impact area
Climate
Publisher
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Copyright
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, 2021
Report

Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade

This report assesses the impact and opportunities for developing countries of the boom in demand for raw materials entering into the production of electric vehicle batteries. In particular, it describes how trade policy could play an important role in helping them capture value from this expansion while managing the risks of overinvestment.

July 21, 2021
  • Demand for lithium as a component of lithium-ion batteries will continue to rise in the coming decades. By contrast, the market for cobalt is likely to tighten given the mineral's toxicity and the environmental, social, and governance problems associated with its mining.

  • Chile, which holds 50% of global reserves, illustrates the opportunities for revenue generation and value addition that the EV boom presents, but ensuring investment contributes to development objectives will require coordination across several areas of policy and engagement with local stakeholders.

  • The Democratic Republic of the Congo, which holds a virtual monopoly on the world's supply of cobalt, illustrates a situation with a real risk of overinvestment. Revenues should be reinvested in basic infrastructure, governance, and education required to provide mining-related services to other local extractive industries.

The electric vehicle (EV) industry has grown significantly in the last few years. The main EV component is the battery, which accounts for one quarter to one third of the vehicle’s total cost of production. Two important materials of lithium-ion batteries today are lithium and cobalt. These are found in large amounts in developing countries. The growing interest and projected increase in manufacturing EVs and the subsequent rising demand for specific minerals presents a key opportunity for developing countries that are some of the main producers and suppliers of these minerals.

Their ability to take advantage of this opportunity, however, is dependent on economic and political readiness to manage sustainable investment as well as the trade policies. Evolving technology also brings risks to raw material producers. This policy brief considers the impact of the EV raw materials boom on developing countries and how trade policy could play an important role in helping them capture value from this expansion while managing the risks of overinvestment.