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Critical mineral mining in the energy transition

Subhrendu Pattanayak, Erika Weinthal and Savannah Carr-Wilson review the ESG risks and opportunities posed by critical mineral mining in the context of energy transition.

Subhrendu Pattanayak, Oak Foundation Distinguished Professor of Environmental and Energy Policy in the Sanford School of Public Policy, Erika Weinthal, John O. Blackburn Distinguished Professor in the Nicholas School of the Environment, and Savannah Carr-Wilson, a PhD researcher in Duke's University Program in Environmental Policy, co-authored a systematic review of the environmental, social, and governance risks and opportunities associated with the mining of critical minerals, such as cobalt and lithium.

While it benefits the clean energy transition, critical mineral mining also presents significant environmental, social, and governance (ESG) risks, the authors wrote in "Critical mineral mining in the energy transition: A systematic review of environmental, social, and governance risks and opportunities," which is published in Energy Research & Social Science.

The authors reviewed 69 articles focusing on critical mineral mining in the context of energy transition to describe the state of the literature and synthesize information on ESG risks and opportunities. They drew on non-legal and legal scholarship, making this the first systematic review on this topic to unite both literatures.

"We find that 60% of papers focus on two minerals – lithium and/or cobalt – leaving other vitally important critical minerals unexplored," the authors wrote. "There are also glaring geographic holes – for example, the lithium papers focus on South America's Lithium Triangle, largely missing top producer Australia and other players. Collectively, the articles identify 26 ESG factors, comprising 18 risks and 8 opportunities. While this review provides a strong synthesis of existing scholarship, it reveals a clear gap between what we know and what is needed to accelerate global energy transition. There is pressing need for scholarship on overlooked critical minerals and regions, ESG opportunities in addition to risks, ownership models, and governance solutions such as impact benefit agreements."