WASHINGTON, CMC—The Inter-American Development Bank (IDB) and the European Union (EU) say they have launched a joint initiative to strengthen the enabling conditions for responsible investments in developing critical minerals and their value chains.
They said the objective is to support inclusive economic growth in Latin America and the Caribbean, enhance sustainable mining practices, and facilitate the global energy transition.
The program, financed by a Euro 6.3 million (one Euro = US$1.05 cents) grant from the EU’s Latin America and Caribbean Investment Facility, will leverage an additional Euro120 million in IDB investments for Critical Raw materials-related projects in several countries in the LAC.
They said key activities will improve mining sector governance, strengthen geological knowledge, and advance the sustainable extraction of critical raw materials such as copper, lithium, and rare earth elements.
These materials are essential for the global energy transition. The initiative aims to address the environmental and social challenges associated with their production, ensuring mining activities support decarbonization efforts and sustainable development.
Likewise, the program is designed to close key policy, governance, and capacity gaps, aiming to boost the mining sector’s contribution to sustainable development, particularly in the context of global energy transition goals.
“The responsible mining of Critical Raw Materials plays a key role in the green energy transition and can bring substantial economic benefits to partner countries in Latin America and the Caribbean.
“The initiative with the IDB will ensure that our partners receive substantial investments in developing critical minerals and their value chains, thereby boosting businesses, cooperation, and the green transition simultaneously,” said Claudia Gintersdorfer, EU Ambassador to Chile.
This project is aligned with the EU’s strategic objectives of fostering international cooperation and sustainable development, the EU-LAC Global Gateway Investment Agenda, the EU Green Deal Industrial Plan, and the Critical Raw Materials Act (CRMA), which aim to support green and inclusive growth and ensure access to minerals critical to clean energy technology manufacturing.
Building on existing framework agreements with Chile and Argentina, the initiative seeks to foster regional growth and deepen EU-Latin America partnerships, underscoring shared values of economic development, environmental sustainability, and a just transition.
“The Inter-American Development Bank is committed to fostering sustainable development and economic growth in Latin America and the Caribbean. Through our collaborative efforts with the European Union, we aim to enhance responsible mining practices and support the region’s transition to a low-carbon economy,” said Morgan Doyle, IDB Southern Cone Manager.
“Our partnership with the European Union underscores the importance of international cooperation in addressing global challenges. By leveraging our combined expertise and resources, we can drive significant advancements in sustainable development and environmental protection across the region,” he added.
The program will benefit thousands of businesses in Latin America and the Caribbean’s mining regions, promoting economic resilience, environmental sustainability, and stronger value chains for critical raw materials.
The DB and EU added that this initiative is a significant step toward achieving the Sustainable Development Goals (SDGs) and addressing global climate challenges by encouraging responsible mining practices and supporting the global energy transition.
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