A group of 36 financial institutions, representing over €3.3 trillion ($3.7 trillion) of combined assets, has released a statement calling on nations to put a pause to deep-sea mining.
Deep-sea mining is a process of extracting and excavating minerals through mineral deposits like polymetallic nodules from the seabed at ocean depths deeper than 200m, to obtain critical minerals like lithium, nickel, cobalt. The International Seabed Authority has so far awarded 31 exploration contracts across multiple zones.
The financial institutions are urging states to "not proceed with deep seabed mining until the environmental, social and economic risks are comprehensively understood, and alternatives to deep-sea minerals have been fully explored." The financial institutions include insurer Allianz France, investment management firm Australian Ethical Investment, UK insurance firm Aviva, Netherlands-based Triodos Bank and Luxembourg-based Storebrand Asset Management.
"We must remember that the deep sea is really one of the very few pristine ecosystems remaining, and to just open [it up] for exploitation without insight is close to madness," Jan Erik Saugestad, chief executive officer of Storebrand Asset Management said on 19 July. "There is increasing recognition that biodiversity loss is a true financial risk and something we must consider when we invest in companies."
"The assumption that deep-sea mining is a key solution for the provision of minerals required for the economic transition to meet climate change goals is heavily contested," the group said on 19 July. "Emerging research is already showing that more investment in the circular economy could be a more effective way to achieve the transition to a net-zero economy."
The Material and Resource Requirements for the Energy Transition report published earlier this month by London-based net zero coalition Energy Transitions Commission pointed out that expansions in mining will be needed to raise supply, with a concerted action required from policymakers, miners and investors.
But it warned that any future deep-sea mining should proceed with "strong caution and high standards for environmental impacts".
The report instead explained that technological advancements, higher material efficiency and recycling can potentially close supply gaps through to 2030. Measurements to improve material and technology efficiency will in the short term have the greatest impact in cutting material intensity — especially for battery materials — while impacts from recycling will be realised in the mid- to long term.
A report published by World Wide Fund for Nature similarly pointed out that technologies, recycling and circular economy models can cut critical mineral demand by 58pc, with demand estimated to reach 42.3mn t in 2050 based on IEA's 2050 net zero scenario from 7.1mn t in 2020.
A total of 21 countries are calling for a moratorium, precautionary pause or an outright ban on deep-sea mining, according to the Deep Sea Conservation Coalition.
The statement is currently an open invitation for other financial institutions to sign. It will be periodically updated with new signatories throughout 2023, according to the coordinator of the statement Finance for Biodiversity Foundation.
