Abstract

The transition from carbon-based fuels to a carbon-free energy system has made mining more essential than ever. However, the energy intensity and reliance on carbon-based fuels in extracting and processing minerals and metals pose significant challenges to global decarbonization efforts. Additionally, communities impacted by mining operations are increasingly advocating for enhanced transparency, participatory decision-making, and equitable distribution of economic benefits. Adhering to elevated environmental, social, and governance (ESG) standards could prolong the development lead times for new mining projects. This presents a risk of entering the market too late, with insufficient capacity and excessively high emissions that could persist for an extended period. Achieving higher ESG standards while eliminating greenhouse gas (GHG) emissions necessitates shorter development timelines and enhanced stakeholder participation. Overcoming these trade-offs requires innovative approaches, particularly in market mechanisms that can unlock the financial resources necessary for the mining sector to meet societal demands. Developing market mechanisms to fund green premiums, essential for expediting the testing and adoption of sustainable critical mineral production innovations, is crucial for reducing costs and risks to attract scaling capital. As this presentation will illustrate, Canada has the potential to lead the world in the supply of sustainable critical minerals, provided there is simultaneous innovation across multiple domains. We need mining and market innovation and the government to support voluntary markets to provide the financial resources to lead the industry's transformation.