African countries rich in critical minerals that are needed for decarbonization are being unfairly targeted to fight climate change, despite contributing only 2% to global emissions, industry experts said.

During a Sept. 1 environmental, social and governance panel discussion at the Africa Down Under mining investment conference in Perth, Australia, Jean-Pierre Douglas-Henry, managing director for sustainability and resilience at law firm DLA Piper, warned "there will be a keen focus, more than ever, on how we [the mining sector] make that a just transition" at the COP27 climate conference, to be held in November in Egypt.

While many parts of Africa are "part way through, or are just about to start, their industrial revolution," the continent still only accounts for 2% of global emissions.

"Yet the world is asking you [African countries] not to follow the same path as the 'global north' did, where they used oil, coal and steel, and other high-emitting substances and activities for their revolution," Douglas-Henry said, referring to China, the U.S. and the European Union, which contribute 23%, 18% and 13% of global emissions, respectively, according to the DLA Piper expert.

"They're asking you to have a green industrial revolution ... and because Africa is rich in minerals, you're being asked to transition and mine those minerals in a sustainable way, using clean renewable energy sources and practices, and you're being asked to do that to avoid jeopardizing emissions reductions of the 'global north' — the biggest emitters."

Many of the world's mineral-rich countries, including Africa, do not have the infrastructure, capital and in some cases the technology "to enable the transition to renewable energy sources at the speed and scale needed," said Douglas-Henry.

Mobilizing capital at scale

African Sovereign Wealth and Pension Fund Leaders Forum Chair Hubert Danso noted that "we are being asked to mobilize more investment in capital for Africa in the next eight years than the entire world was able to mobilize in the last 20 years."

Global investments into renewable energy between 2000 and 2020 totaled $2.8 trillion, only 2% of which went to Africa, Danso said, adding that the Climate Policy Initiative estimated the same amount is required by 2030 for African countries to implement the nationally determined contributions.

The monumental task requires "structural, fundamental adoption" of ways to mobilize capital at scale, since, historically, the private sector has "not come to the party sufficiently well" to fund the sector, Danso said.

Hence the recent establishment of the African Green Infrastructure Investment Bank, an "institutional investor-public partnership" that will help mobilize capital and work with governments to create a legal environment to enable the deployment of capital, Danso said.

Resolute Mining Ltd.'s executive general manager for sustainability, Jordan Morrissey, said it is "absolutely incumbent" on all miners that are developing projects to explore renewable energy at an asset level, though the business case for that "needs to stack up."

Considered approach needed

Though "all operators need to be advocates of the energy transition," Morrissey cautioned that industry runs the risk of adversely affecting the world's energy transition if a "considered approach" is not taken. Renewables must be explored in the context of emissions reduction targets so that the industry can hold itself accountable by tracking improvements year on year.

The adoption of renewables "all depends on economics," DLA Piper Africa's Terence Dambe said, adding "you can't just switch off mines" that have diesel power generation.

Douglas-Henry cautioned that it would take some time for the public and private sectors to collaborate on building renewable energy infrastructure to power the sustainable mining of critical minerals. Tapping the right investors and implementing the legal frameworks and social safeguards to facilitate this will also take time.

Republic of Ghana Minister for Lands and Natural Resources Samuel Jinapor said the various sustainability requirements that have been developed for Africa are workable. However, "the whole framework must take into account the reality of the African situation" and the "historical imbalance" that has led to the situation today, where Africa's emissions footprint pales in comparison to other, more developed economies.