‘Dirty’ resources sector needs decarbonisation, not divestment

THE metals and mining industry in the Asia-Pacific has a bad reputation among ESG (environmental, social and governance) investors. It is seen as dirty and destructive, or even corrupt and dangerous – at times, it must be said, with good reason.

The resources sector, however, will be crucial to the world’s energy transition. Clean energy technologies require far more lithium, nickel, copper, cobalt and other minerals than their fossil-fuel counterparts – an electric car uses five times more minerals than a combustion engine one, for example – and a supply crunch is looming.

The pathway to net-zero emissions requires immense investment in green technology and infrastructure, all of which will cause global demand for minerals to surge. China alone will need to spend an additional US$17 trillion on green infrastructure and technology in the power and transport sectors to reach its national goal of net-zero emissions by 2060, according to the World Bank.