OECD - Mining and Green Growth in the EECCA Region

For most countries in the Eastern Europe, Caucasus and Central Asia (EECCA) region, mining is an important economic sector that contributes to employment and public revenue. It is also a major historic source of environmental damage, and continues to have the potential for immediate and long-term negative environmental effects. Governments in the region have a vital role to support better environmental performance in the mining sector and ensuring the industry can be a progressive part of a greener economy.

This report provides a foundation upon which to develop country-specific strategies for reconciling green growth and the mining sector. To that end, the report examines the environmental impacts of the mining sector in the EECCA. It assesses what has worked and not worked in OECD member countries to improve environmental performance. And it studies specific examples of successful sustainable mining operations.

Furthermore, it reviews environmental impacts and trends in the mining sector. It complements international knowledge and efforts in providing new evidence and best practices from leading mining jurisdictions. In so doing, it provides policy makers with guidance to reconcile environmental and competitiveness objectives in the mining sector.

This report would not have been possible without the generous support of the governments of Norway and Switzerland, and both the author and the OECD express their gratitude. The author is also grateful for the invaluable comments he received from his colleagues at the OECD, including Krzysztof Michalak, Jean-Franois Lengell, Nelly Petkova, Taka Kato, Enrico Botta, and Chris McDonald, as well as from Claudia Kamke at UNECE.

This report:

• reviews principal examples of the environmental damage caused by different forms of mining

• presents emerging technology trends that are either directly or indirectly impacting environmental performance in mining

• identifies linkage opportunities between the mining sector and the green economy

• recommends areas of policy response for governments to improve environmental performance in the mining sector.

The shift to a greener global economy will continue to demand significant quantities of natural resources, including copper, lithium and cobalt. However, the mining sector is a major potential source of immediate and long-term environmental damage. In the Eastern Europe, Caucasus and Central Asia (EECCA) region, the extraction of mineral resources remains an important contributor to export earnings, employment and public revenue at the national and sub-national level. Governments have a vital role to play in supporting better environmental performance in the mining sector. They can ensure that industry is a progressive partner in promoting green economic growth and achieving the Sustainable Development Goals.

Beyond reducing the impact of mining on the environment and local communities, sustainability is increasingly an asset for competitiveness. Good environmental performance lowers costs by improving efficiency and helping ensure that mining companies earn a social licence from stakeholders.

The mining sector has substantial backward and forward linkages to other parts of the economy. Shifting mining to a more sustainable path can potentially improve environmental performance in existing linkages, as well as develop new ones. This includes acting as a conduit for new technologies, such as automation and digitalisation. It also means becoming a driver for environmental service providers, renewable energy and green infrastructure.