Public Development Finance Institutions and Export Credit Agencies: Shaping the Future of Transition Minerals

As the world races towards meeting the United Nations’ Sustainable Development Goals by 2030, the demand for clean energy and climate action is driving the need for transition minerals like lithium, copper, cobalt, and nickel. However, the extraction of these minerals poses risks to the environment and communities if not done sustainably.

A new report from the Boston University Global Development Policy Center and the Center for China and Asia-Pacific Studies at Peru’s Universidad del Pacífico highlights the role of public development finance institutions and export credit agencies in shaping the sourcing of transition minerals. These financial institutions play a crucial role in financing the extraction of these minerals and have the potential to improve environmental and social governance in the sector.

The report identifies five key processes in 2025 that will determine how public DFIs and export credit agencies support the development of a sustainable and inclusive transition mineral supply chain. These processes include China’s Green Finance Guidelines, the reauthorization of the US Development Finance Corporation, the review of the IFC Performance Standards, strengthening policy lending through the World Bank Evolution Roadmap, and advancing traceability in transition mineral supply chains.

The decisions made in these processes will have a significant impact on the sustainability efforts in the transition mineral sector for years to come. It is crucial for policymakers at public DFIs to prioritize sustainability and inclusion in their financing decisions to ensure a just transition for all. The coming year presents a defining moment for sustainable finance in transition minerals, and the choices made now will shape the future of the green energy transition.
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