Philippines, Asia Development Bank Drive Forward Dialogue on Resilient and Responsible Critical Minerals in the WTO

(from left to right) Dr. Rocky Lee of Innovasian Tech, Ambassador and Permanent Representative Manuel A.J. Teehankee, Ms. Ieva Baršauskaitė of International Institute for Sustainable Development, Mr. Bruce Gosper, Vice President of the Asian Development Bank, WTO Director Aik Hoe Lim, and Dr. Julian Clarke of the Asian Development Bank.

GENEVA 16 October 2024  – The Philippine Mission to the World Trade Organization (WTO) and the Asian Development Bank (ADB) successfully co-organized a high-level panel discussion on 7 October 2024 on "Building Resilient and Responsible Critical Minerals Supply Chains for the Clean Energy Transition." The event was held as part of the WTO’s Trade and Environment Week 2024, and brought together policymakers, industry leaders, and experts to explore the vital role of critical minerals in driving the global shift towards sustainable energy solutions.

Philippine Permanent Representative to the WTO Ambassador Manuel A. J. Teehankee and ADB Vice President Bruce Gosper, Vice President of the ADB, provided keynote messages at the event, emphasizing the importance of collaboration, innovation, and the role of trade in building a sustainable supply chain for critical minerals essential to the clean energy sector.

​​Ambassador Teehankee highlighted the Philippines' emerging role and potential as a key player in the global supply chain for critical minerals, including nickel, copper and cobalt, which are vital for electric vehicle batteries and renewable energy systems. He underscored the country’s commitment to responsible mining practices and environmental sustainability by “pursuing multi- stakeholder partnerships, including the requirement to integrate biodiversity management plans into mining operations and the establishment of a joint monitoring and evaluation mechanism between the Department of Environment and Natural Resources and the Philippines’ Chamber of Mines.” Ambassador Teehankee noted the proactive efforts of the local industry to join the Towards Sustainable Mining (TSM) initiative, which commits member firms to meet ESG standards on safety, community engagement including with indigenous peoples, and environmental protection. Given its capital-intensive nature and the long gestation periods for mining projects, Ambassador Teehankee also highlighted ongoing efforts to simplify and rationalize the mining fiscal regime and to fast-track new guidelines to streamline and fast-track the processing of exploration mining permits.

Speaking on the nexus of development, trade and climate response, ADB Vice President Gosper addressed four critical challenges facing critical minerals supply chains: supply concentration; environmental and social concerns; market volatility and external shocks. He highlighted the importance of trade-related climate measures as policy tools as well as the crucial role that regional cooperation plays in supporting investments for sustainable and responsible mining projects, including ADB’s development financing and the capacity-building support it has provided in the development of green and blue bonds in the region. ADB is building knowledge among its partner governments, including Uzbekistan and Mongolia, on developing its domestic capacities to improve competitiveness and increase value addition.

​​The panel provided an opportunity to launch a new WTO-ADB critical minerals database project, tracking resources from origin to destination, which would improve transparency and would provide knowledge tools for policymakers, researchers, and civil society. The WTO-ADB critical minerals database will utilize WTO data sets on applied tariffs and trade values for products in critical minerals value chains, comprehensive information on members’ policies and regulations in this sector, and data visualization tools to examine linkages in value chains.

The panel also addressed the potential for trade policies to drive sustainability in the critical minerals sector. They discussed strategies for enhancing transparency, traceability, and due diligence throughout the supply chain to promote inclusive, responsible and sustainable practices. The panelists emphasized the need for regional and global cooperation, inclusive trade frameworks, and the role of international organizations in setting standards for sustainable trade in critical minerals. Ambassador Teehankee called for further policy dialogue within the WTO on critical minerals supply chains and noted that members “have a strong political foundation to move work forward, with the September 2024 release of the UN Secretary-General’s Panel Report setting out Seven Key Principles to Guide Critical Energy Transition Minerals. Of particular relevance to the WTO are policy recommendations to accelerate greater benefit sharing, value addition, and economic diversification as well as traceability for accountability. The report explicitly calls for collaboration with the WTO to ‘identify barriers to market access and trade to assist development.’ While cognizant of the need to avoid unilateral trade barriers, incentivized transparency and accountability frameworks would contribute to the greening of mining value chains – from extraction to recycling.” END

The recorded sessions for the 5th WTO Trade and Environment Week may be accessed at the following   weblink: https://www.wto.org/english/tratop_e/envir_e/envir_0710202409_e/envir_0710202409_e.htm.

Ambassador Teehankee and ADB Vice President Gosper delivering their keynote speeches.

WTO member countries, academe and civil society groups participated in the panel discussion

For more information, visit https://wtopm.dfa.gov.ph/