1. The Case for a Climate-Smart Update of the Africa Mining Vision
- Author:
- Perrine Toledano, Martin Dietrich Brauch, Karan Bhuwalka, and Kojo Busia
- Publication Date:
- 04-2021
- Content Type:
- Research Paper
- Institution:
- Columbia Center on Sustainable Investment
- Abstract:
- Mining sector investments in Africa can be structured so that the continent may benefit from climate policy in de- veloped countries that puts a global price on carbon. Cur- rent supply chains rely on complex, specialized networks where different parts of the production process are locat- ed in different regions of the world. This system of global value chains5 leads to greenhouse gas emissions through cross-border transportation and excess waste (especially in electronics and plastics). There is some evidence that border tariffs harm vertical specialization, where different regions are specialized in a very specific task.6 Therefore, carbon pricing, including carbon border tax, could lead to the localization of value chains. Multinational companies may move intermediate stages of production closer to the source of mineral extraction, providing a boost to foreign investment across Africa. The incentive for companies to shrink these value chains is even higher in the aftermath of the COVID-19 pandemic, which exposed some of the risks of relying on extensive global supply networks.7 These global trends sit within a broader and relatively recent context of soaring environment, social, and governance (ESG) investment affecting companies, shareholders, and governments alike.
- Topic:
- Climate Change, Environment, Mining, and Carbon Emissions
- Political Geography:
- Africa