UNEPFI released its latest ocean finance report discussing the risks and impacts associated to deep-sea mining and how financial institutions should respond to this sector.
The deep sea contains many of the most pristine ecosystems on our planet and plays a crucial role in regulating the climate. Plans to mine this unique and complex area of our planet would create irreversible ecosystem and habitat loss, as well as permanently destroy invaluable carbon storage.
Due to high levels of scientific uncertainty and potential devastating environmental impacts of deep-sea mineral extraction, many civil society groups including manufacturers and private organisations have voiced their concerns.
In this critical context and as part of ongoing work on the sustainable financing of ocean-related sectors, UNEP FI has published a briefing paper, sending a clear message to its members and the wider finance community. In their current form, there is no foreseeable way in which the financing of deep-sea mining activities can be viewed as consistent with the Sustainable Blue Economy Finance Principles.
Discussing the significant reputational, regulatory, and operational risks associated with plans to mine the deep seabed of minerals, the paper addresses how financial institutions should respond to the deep-sea mining sector. It also lays out how financial institutions wishing to finance the extraction of necessary rare earths and metals could focus efforts on alternative strategies that would reduce the environmental footprint of terrestrial mining and support the transition toward a circular economy.
The report on deep-sea mining is available here.
Recognizing that a significant amount of investment and financing continues to be directed towards the exploitation of non- renewable marine mineral resources, UNEP FI has prepared a series of sector-specific briefing papers to explore their social and environmental impacts, with particular reference to the development, operation and closure of each of these sectors, the risks to financial institutions of continued association with these activities, and managing the transition to more sustainable alternatives:
- Turning the Tide: with recommendations on seafood, shipping, marine renewable energy, coastal tourism and ports
- Diving Deep: with recommendations on ocean pollution and coastal infrastructure
- Recommended exclusions list: activities to exclude from financing due to their damaging impact on the ocean and high risk (derived from ‘Turning the Tide’)
- Rising Tide: maps the ocean finance space and is a great introduction to those new to this topic
- Harmful Marine Extractives: Dredging and marine aggregate extraction | Offshore oil and gas
Source: UNEPFI- deep-sea mining