Climate-Smart Mining Workshop Report

Colombia is currently facing challenges such as the energy transition, the need for innovation and achieving a more sustainable mining industry. The Minenergia has been disseminating the following:

• Good practices, new tools and mechanisms that have been working in the public sector and in companies.
• The Virtual Guide on Climate Changewhich allows companies to measure their carbon footprint, identify mitigation measures, conduct a climate risk analysis and identify options for environmental offsets.
• The National Circular Economy Strategy and the guidelines for follow-up and monitoring of development processes that allow companies to identify potentials for achieving circularity and energy efficiency.

• The mining and energy sector has a key role to play because of its duality in the climate crisis. On the one hand, it is a historically emissions-intensive sector; on the other, it has the opportunity to be the solution through the use of renewable energies.
• Chile has made significant progress on climate action issues, as reflected in the updating of its Nationally Determined Contribution (NDC), its long-term climate strategy (Roadmap 2050) or the recently approved Framework Law on Climate Change.

• MaPriC is one of the few cooperation projects that works in an articulated manner on the issue of raw materials and climate. 
• Since its creation, it has encouraged companies to take the first steps towards a commitment in which mining and the environment are compatible. 
• MaPriC aims to create more spaces for dissemination and collaboration, as well as to work on sustainability reporting with companies.

• The ICM, a joint initiative with the IFC, started four years ago in line with the objectives of the Paris Agreement, the Development Goals - SDGs and the Agenda 2030.
• In response to the climate crisis, the world is migrating towards the use of non-carbon-intensive, yet mineral- and metal-intensive technologies. 
• It is estimated that more than 3 billion tons of minerals and metals will be needed to achieve a 2°C scenario. Graphite, lithium and cobalt production could increase by more than 450% by 2050. 
• ICM aims to support the extraction, processing and recycling of minerals and metals by creating shared value and delivering social, economic and environmental benefits along the value chain of emerging economies. 
• The countries most supported are those that currently produce the most minerals and metals, as well as those where the sector is relevant in the national greenhouse gas (GHG) inventory. Support has also been provided to governments to implement best practices related to ICM.
• There are four pillars within the ICM initiative:
  • MitigationFocuses on initiatives designed to reduce GHG emissions along the mineral value chain.
  • ResilienceFocuses on initiatives that seek to increase the resilience of operations to climate impacts. Includes nature-based solutions.
  • Circular economy: Supports policies or investments by companies and governments that promote the circularity of minerals and the design of new circular business models. 
  • Market opportunitiesIt refers to the finances required to make the projects work. It involves providing assistance to governments.

• The focus is on gender and innovation, strengthening governance and the regulatory framework.

• In line with the Paris Agreement and energy transition trends, new technologies are forecast to increase copper demand by 56% and nickel by 102% (compared to 2020). 
• The emissions intensity of the extraction of both minerals could double by 2050. Decarbonization in the production of these minerals, as well as in their value chain, will be vital. The IFC has prepared a roadmap of the transition to net-zero emissions for copper and nickel.

• There are high rates of deforestation in the world that cause up to 25% of current GHG emissions. Mining activity also impacts forested areas. Part of this mining corresponds to minerals needed for the energy transition. 
• The FSM approach understands the mining-forest relationship, its different socioeconomic uses and the ecosystem services it provides. FSM aims to reduce the losses and damages caused by mining while enhancing its benefits. 
• Nature-based solutions (NBS) are based on the premise that healthy, biodiverse and functional ecosystems are fundamental to human well-being and provide a variety of services. 
• Currently, 90% of BDS financing comes from the public sector; private companies are also expected to promote this approach. 
• The reports prepared by the WB cover large-scale, artisanal and small-scale mining. 
• For large-scale mining, the aim is to engage the private sector to financially support BDS through carbon markets. 
  • There are three case studies: Chile, Liberia and Brazil. In Chile, the activities were related to a natural sanctuary; the scale of the BNS was high. In addition, it was necessary to apply innovation mechanisms in order to promote these solutions. In Brazil, due to national regulations, companies are obliged to take care of a larger area of land than granted. In both cases, the results of the SbNs have been very positive. These cases have shown that BDS have the potential to grow thanks to access to carbon markets.
• In the case of artisanal and small scale mining, the purpose is to evaluate and develop guidelines and tools. Among its objectives is to develop technical guidelines and indicate FSM guidelines based on existing standards. 
  • Pilot projects have been developed in Colombia, Peru, Ghana, Liberia and Burkina Faso. From the experience in Colombia, it is important that strategies be implemented at all levels and involve all collaborating institutions. In addition, it is necessary to identify opportunities in which markets can invest in BDS, such as Verra - Standards for a Sustainable Future o The Gold Standard.

• The MaPriC Project aims to develop and complement strategies to increase resource efficiency and GHG reduction. MaPriC is driven by the International Climate Initiative (IKI) on behalf of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. MaPriC works with the Chilean Ministry of Environment and the Colombian Ministry of Energy. It works with 9 Colombian companies and 15 Chilean companies.
• The project is divided into 4 components:
  • Environmental and climate change policy instruments and measures
  • Corporate environmental standards and development of national regulations
  • Energy efficiency measures in companies
  • Capacity building and exchange of experiences
• MaPriC relates to ICM mainly in the mitigation and climate resilience pillars.
• They also work on a cross-cutting approach to governance and an appropriate regulatory framework. They have collaborated with governments in the strengthening of environmental policy instruments and climate change, adaptation studies and mitigation strategies. With companies they have worked on energy efficiency measures, cost-benefit analysis of PIGCC measures and with the standard IRMA - The Initiative for Responsible Mining Assurance.

• While sharing the main objective with MaPriC Colombia, in Chile, the following components are prioritized: 

• • Environmental and climate change policy instruments and measures
  • Energy efficiency measures in companies
  • Capacity building and exchange of experiences

• In relation to ICM they focus on the pillars of mitigation and circular economy; they have driven strong governance through the dissemination of the Energy Efficiency Law.
• They have provided technical support to companies through 5 studies and 12 seminars. Regarding the Energy Efficiency Network, they maintain 16 projects that represent more than 52% of the national copper production.  
• They have a web platform (the first Latin American portal with information and energy efficiency projects in the sector).