A global minerals trust could prevent inefficient and inequitable protectionist policies

Abstract

The global transition to sustainable energy and infrastructure faces a critical challenge: ensuring equitable access to essential minerals while also providing fair and stable income for mineral suppliers and mitigating the serious risk of resource conflicts. As demand for critical energy transition minerals [defined by the United Nations (UN) as those necessary for renewable energy technologies] surges, their uneven distribution risks heightening geopolitical tensions and the potential for supply chain disruptions. With critical minerals likely to generate considerable discussion at the meeting of G7 countries this month, we propose a Global Minerals Trust to address these challenges, incentivize cooperative resource management for the green transition, and disincentivize the formation of cartels. The Trust would serve as a neutral steward or broker ensuring fair prices for both mineral suppliers and consumers, discouraging a rush toward inefficient new mines, and supporting developing countries with technical assistance to sustainably expand mineral industries.