COP29: Energy Transition Must Not Trigger a ‘Stampede of Greed’ that Crushes the Poor

The panel launched last year at COP28 in the United Arab Emirates with the aim of bringing together governments, international organizations, industry and civil society to develop common and voluntary principles to guide extractive industries “in the name of justice and sustainability”.

In Baku, the UN chief, who convened today’s event, said that the renewables revolution is powering forward. Last year – for the first time – the amount invested in grids and renewables overtook the amount spent on fossil fuels.

Past mistakes and the rush for resources

Demand for the minerals critical to the transition are expected to surge – as governments triple global renewables capacity by 2030 – as promised – and phase out fossil fuels, Mr. Guterres said.

“For developing countries rich in those resources, this is a huge opportunity: to generate prosperity, eliminate poverty and to drive sustainable development. But too often this is not the case,” he warned, and added:

“Too often we see the mistakes of the past repeated in a stampede of greed that crushes the poor.”

We see a rush for resources, with communities exploited, rights trampled, and environments trashed – UN Secretary-General António Guterres

Indeed, the rush for resources led to the exploitation of local communities exploited, the trampling of rights and the trashing of environments.

“We see developing countries ground-down to the bottom of value chains, as others grow wealthy on their resources,” said the UN chief.

It was against the backdrop of this sad reality and calls from developing countries for action that the Panel had been established, he said.

The Panel’s latest report identifies seven voluntary principles and five actionable recommendations to embed justice and equity across critical mineral value chains.

“These aim to empower communities, create accountability, and ensure that clean energy drives equitable and resilient growth. That includes advancing efforts to ensure maximum value is added in resource-rich developing countries,” the Secretary-General explained.

The United Nations system is coming together to help implement the Panel’s findings, working with Member States and other stakeholders to establish the recommended High-Level Expert Advisory Group to accelerate action on key economic issues, including benefit sharing, value addition and fair trade.

UNFCCC/Kiara Worth

Developing countries in the driver’s seat

The UN chief said that developing countries will drive this process with indigenous peoples, local communities, young people, civil society, industry and trade unions present at discussions, alongside governments.

“We will also take forward the recommended global traceability, transparency and accountability framework for the entire mineral value chain. This will help to drive responsible production, safeguarding human rights and the environment,” he added.

All leaders – in government, industry and civil society – should join the UN and its partners from developing countries, local communities and beyond, to accomplish this task, Mr. Guterres insisted.

“As demand for critical energy transition minerals surges, so must action. Together, let us turn the transition towards justice and equity,” he said.