Rush on raw materials

If oil and mining projects are not executed accurately, they may spell disaster for the landscape, biodiversity and the local population.

Due to the increased prosperity in the western world and in emerging economies like China, India and Brazil, global demand for energy and raw materials has risen. Consequently, the prices of raw materials and energy have gone up dramatically. Developing oil and mining-reserves that used to be economically unprofitable is now getting financially interesting. Technological advances open up possibilities of setting up oil and mining projects in previously inaccessible areas, such as mountains, seas or forests.

The necessity of sustainability criteria
Oil and mining projects more often aggravate rather than alleviate poverty and environmental damage. The biggest risks of these so-called extractive projects are soil, air and water pollution and even the destruction of entire landscapes. Besides, access (via roads and other infrastructure) to previously inaccessible areas causes habitat fragmentation and attracts other economic activities, like (illegal) hunting, logging and agriculture, which have detrimental effects on nature and local communities.

Transparency
This damage can be prevented by including concerns about biodiversity and the concerns of the local population in the project management from the beginning. In the years to come, oil and mining companies will have to apply sustainability criteria, to avoid further damage to nature and local communities. The export of raw materials can contribute to poverty reduction and the conservation of nature, if the oil and mining companies involved transfer their revenues to the local government and if this government actually invests the money in education, health and the conservation of nature. In this context, it is crucial that the contracts and payment flows are transparent.

Measures for sustainability
Various measures need to be taken to make the oil and mining sector sustainable. Prior to the start of an oil or mining project an Environmental and Social Impact Assessment (ESIA) should be prepared, involving all stakeholders. This ESIA is performed by an independent party, and its outcome must be respected. There has to be a continuous dialogue between civil society, the local population and other parties involved throughout the project. For the conservation of biodiversity it is essential that no extractive activities are carried out in protected areas. National governments are to create the conditions under which legal security and a stable business climate provide ample protection for the investments of (multinational) companies. This would make companies less reluctant to subject their projects to sustainability criteria. The revenues received by the national governments for the exported raw materials need to be made public, so that their expenditure can be monitored.

What does IUCN NL do?
The map Extractive Industries in West and Central Africa of IUCN NL provides information on current extractive projects and their consequences for biodiversity and the local populations. Additionally, the map gives recommendations for making the extractive sector sustainable. The map is distributed among local and regional NGOs and governments, and among western companies and governments. IUCN NL also enters into discussion with Dutch companies in the extractive sector. Furthermore, IUCN NL assists local NGOs in setting up projects and aims at increasing awareness and capacity-building of these NGOs, so that they can participate in the dialogue with the respective companies themselves. IUCN NL remains committed to the implementation of sustainability criteria.

• The ICMM Good Practice Guidelines
• The Energy and Biodiversity Initiative Guidance
• The World Bank Safeguard Policies
• Publish-What-You-Pay (PWYP)
• Publication: Extractive industries in West and Central Africa