Germany’s Pursuit of ‘Critical’ Minerals is Marred by Human Rights Concerns

Germany’s Rush for ‘Critical’ Minerals is a Human Rights Challenge

As Germany plans to generate 80% of its electricity from renewable energy sources and register 15 million all-electric cars by 2030, the country faces challenges in meeting the significant demand for minerals required for the energy transition. The minerals, including lithium, cobalt, manganese, and copper, are primarily located in Asia, Latin America, and Africa. However, the mining sector in these regions has a poor record in respecting human rights, including child labor, expropriation of land, pollution, and violence by armed groups. The “critical” minerals required for Germany‘s energy transition create a conundrum for the country as relying on these minerals comes at the expense of human rights. Therefore, the German government is addressing these concerns through the EU Critical Raw Materials Act.

Risks of Human Rights Violations in Mining for Energy Transition Minerals

The new rush on the so-called critical minerals is worrisome given the human rights record of the mining sector. The mining sector has been known for perpetuating violations, including child labor in cobalt mining, pollution, and indigenous peoples’ rights’ violations in lithium mining. Further, most of the minerals are processed in China, where supply chains are rarely checked for risks of forced labor or other abuses. The German and other EU governments are concerned about their dependency on China and are trying to secure a diversified supply of minerals by relying on certification initiatives and audits to decide whether new mines and other projects merit government support.

Limitations of Relying on Audits and Certifications

Relying on audits and certifications is problematic since they often lack rigor and transparency. The EU Critical Raw Materials Act relies heavily on certification initiatives and audits to decide whether new mines and other projects merit government support, which risks supporting harmful mining projects. At a conference on “responsible mining for a just transition,” the Development Minister of Germany recognized the risks, making clear that mine workers should be able to perform their work under decent conditions and should not be exploited.

Need for Responsible Business Conduct

Germany’s new supply chains law that entered into force in January 2023 obliges companies to identify, prevent, and address risks in their supply chains, and to report their steps publicly. The office tasked with enforcement needs to closely monitor companies in the supply chain for energy transition minerals, impose fines on those that do not comply, and enforce the supply chain law.

Editorial

The German government has taken initiatives to address the human rights risks posed by the mining sector’s dependency on developing countries for critical minerals. Although Germany‘s new supply chain law is a step in the right direction, it requires strict enforcement to hold companies accountable for their actions. It is crucial that the office tasked with monitoring the supply chains for energy transition minerals closely watches companies and imposes fines on those that do not comply with the supply chain law.

Moreover, a more long-term solution must be sought to reduce dependency on developing countries for critical minerals. The solution must build on a sustainable relationship between developed countries and developing countries where all parties benefit and human rights are respected.

Advice

Consumers can play a crucial role in pressuring companies for responsible business conduct. Consumers can support companies that respect human rights and avoid those that fail to meet ethical standards. Before purchasing a product, consumers can research the company’s supply chain practices and engage with the company to improve its practices.

Furthermore, the government of developed countries should consider investing in research and development for alternatives to critical minerals. This will help reduce reliance on developing countries for critical minerals and protect human rights.