The European Parliament want more support for low-income, resource-rich countries to support them in moving away from the extractivist model of the mining sector.
On Wednesday, MEPs adopted a report on the role of EU development policy in transforming the extractive industries to be more sustainable in development countries, by 357 votes in favour, 179 against and 97 abstentions.
In the text MEPs said that, as the world’s largest development donor, the EU has to consider sustainable development objectives across all policy areas, including those related to the work of extractive industries. This is particularly relevant now given the increasing importance of critical raw materials to the EU’s twin climate and digital transitions, and the reliance of many developing countries on raw materials exports.
Code of Conduct
MEPs want the Commission to produce an “EU Code of Conduct on Responsible Investment in Extractive Industries in Developing Countries”. It would establish – with input from industry, trade unions, civil society, and local and indigenous representatives – guiding principles for investment in developing countries in line with the EU’s due diligence process and relevant international standards and initiatives. The Code should cover, they say, commitments on local involvement, transparency in reporting and financial dealings, and protection of the rule of law and compliance with anticorruption measures.
Given their intrusive and disruptive nature – to the environment, biodiversity and public health – EU policy on extractive industries must take a people-first approach, MEPs say. It should centre the views and needs in particular of local and indigenous communities, and the EU should create a Global Gateway Monitoring Group (GGMG) comprising civil society groups, MEPs, member state representatives and other experts. This GGMG would report on the impact of Global Gateway projects on human rights, the environment, civil liberties, peace, inequality and poverty reduction.
To support development partners to reduce their dependence on extractive industries, MEPs want the EU to enhance its support for these countries to diversify their economies and help develop sustainable alternatives to insulate them from the economic shocks and price volatility associated with extractive industry-led growth.
Barry Andrews (Renew, IE), rapporteur, said: “Extractive industries underpin our economies and will drive the green transition, but mining for non-renewable materials often comes hand-in-hand with environmental and human rights abuses. This is a critical report, as it clearly demands the EU prioritise sustainability and the needs of indigenous communities when conducting business in developing countries. This is especially important in the context of the Critical Raw Materials Act and the revision of the Conflict Minerals legislation. We must practice what we preach when it comes to respecting our own values in third countries – achieving Europe’s climate ambitions cannot come at the expense of the rights of others.”
