Raw materials are the backbone of our modern world. Without raw materials, there would be no smart phones, no wind turbines and no electric cars. We aim to ensure that everyone handles these valuable materials responsibly and promote fair, sustainable and resilient supply chains.
Mineral raw materials are a fundamental part of our everyday lives and have long been the foundation of industrial development – from traditional industrial sectors such as construction and mechanical engineering to future technologies such as batteries, computer chips and solar panels.
A reliable supply of natural resources is a key factor in shaping the private sector and society in a sustainable way.
Global demand for raw materials is growing. While this demand carries risks for people and the environment, it also creates opportunities for resource-rich countries. However, many countries in the Global South are unable to fully harness this potential because they lack strong institutions and effective administrative structures.
We support partner countries in shaping resource policies that are responsible and future-oriented. To this end, we develop solutions that help minimise risks in the raw materials sector for all stakeholders, while also unlocking economic opportunities. The goal is to create more social and environmental value within the countries themselves, attract sustainable investment, and enable fair trade.
Raw material extraction and processing often come at a high cost, frequently accompanied by corruption, environmental destruction and human rights violations. The consequences are dramatic, including lost government revenue, polluted soil and water, as well as child labour and conflict.
To address these challenges, governments and companies are actively committed to achieving more transparency and sustainability. New laws and standards aim to ensure that raw materials are extracted and processed in a socially and environmentally responsible manner.
We contribute to more sustainable mining by providing comprehensive advice in the following areas:
Ultimately, only responsible supply chains can remain stable in the long term.
In many regions, raw materials do not lead to prosperity but instead fuel conflict. When revenues are unfairly distributed, the environment suffers and institutions and authorities are weak, and social tensions quickly arise. Moreover, some conflicts – as well as terrorist or criminal groups – are financed through raw materials trade.
In our countries of assignment, we work to reduce risks for conflicts and human rights while stabilising supply chains – to enable the local communities to safeguard their livelihoods. GIZ therefore supports the implementation of initiatives such as the EU Conflict Minerals Regulation and digital tracing systems designed to restrict market access for raw materials from crisis regions. We also strengthen the voices of those affected and enhance the capacity of administrations, for example, through fair contracts and transparent licensing, as well as effective taxation and oversight. Conflict mediation and measures for secure supply chains are also part of this.
Secure raw material supply chains and reliable partnerships are the key to a climate-neutral future. They promote sustainable development and economic growth in resource-rich countries and help meet Europe’s demand for raw materials.
However, rising demand, political tensions and trade conflicts are placing increasing strain on global raw materials supply chains. Through the Critical Raw Materials Act, the EU seeks to strengthen the supply of raw materials through diversification, the circular economy and international partnerships.
Yet many resource-rich countries lack the technology, expertise and financial means to use their raw materials in a sustainable, socially just and economically viable manner. We support governments, businesses and civil society with establishing responsible, and circular-oriented supply chains – by offering expertise, advice and a worldwide network.