Linkages between mining, environment, and climate change
The mining sector is intrinsically linked to the green transformation and global efforts to combat climate change. Mining can contribute to economic growth and provide job opportunities. However, strong institutions and good governance are critical to reduce negative environmental and social impacts associated with mining activities and ensure that benefits are shared with local communities.
Minerals are important for the green transition
Global efforts to electrify and move away from fossil-based energy sources result in a dramatic increase in demand for a wide range of minerals, including critical and strategic materials. Mining, which is an important economic sector in many of Sida’s partner countries, can contribute to economic growth, increased government income through taxation and resource rents, and investments in social and physical infrastructure. The mining sector, particularly artisanal and small-scale mining (ASM), also provides job opportunities and can contribute to livelihood diversification. With good governance and careful management, the mining sector can contribute to a just green transition. It requires respect for the needs, priorities, and realities of the local contexts.
Mining can have severe environmental and social impacts
The mining sector is associated with several potentially significant negative environmental and social impacts that need to be managed. Mining activities generate air and water pollution, risking harmful leakages of chemicals and heavy metals, which can contaminate surface and groundwater. The pollution can negatively affect the health of local populations, particularly children.
Both large and small-scale mining can lead to land-use changes (including deforestation and erosion), depletion of local natural resources, loss of biodiversity and increased in‑migration. The land-use changes can place significant pressure on surrounding ecosystems, reduce access to land for other uses (such as food production), reduce natural carbon sinks, and increase the vulnerability of local communities.
In areas with weak institutions and governance, mining increases risks of corruption, environmental degradation and human rights abuses. Furthermore, mining activities are frequently driving conflicts over land and other resources, with a disproportionate burden on local populations, particularly people living in poverty. This can obstruct effective climate adaptation actions and sustainable development in vulnerable communities.