The Inter-American Development Bank (IDB) and the European Union (EU) have launched a joint initiative to strengthen the enabling conditions for responsible investments to develop critical minerals and their value chains. The objective is to support inclusive economic growth in Latin America and the Caribbean (LAC), enhance sustainable mining practices, and facilitate the global energy transition.

The program, financed by a €6.3 million grant from the EU (Latin America and Caribbean Investment Facility), will leverage an additional €120 million in IDB investments for Critical Raw Materials related projects in Argentina, Bolivia, Brazil, Chile, and Ecuador. Key activities will center on improving mining sector governance, strengthening geological knowledge, and advancing the sustainable extraction of critical raw materials such as copper, lithium, and rare earth elements.

These materials are essential for the global energy transition, and the initiative aims to address the environmental and social challenges associated with their production, ensuring mining activities support both decarbonization efforts and sustainable development. Likewise, the program is designed to close key policy, governance, and capacity gaps, aiming to boost the mining sector’s contribution to sustainable development, particularly in the context of global energy transition goals.

“The responsible mining of Critical Raw Materials plays a key role in the green energy transition and can bring about substantial economic benefits to partner countries in Latin America and the Caribbean. The initiative announced today with the IDB will ensure that our partners receive substantial investments in developing critical minerals and their value chains, thereby boosting businesses, cooperation and the green transition simultaneously. -Claudia Gintersdorfer, EU Ambassador to Chile

This project is aligned with the European Union's strategic objectives of fostering international cooperation and sustainable development, the EU-LAC Global Gateway Investment Agenda, as well as the EU Green Deal Industrial Plan and the Critical Raw Materials Act (CRMA), which aim to support green and inclusive growth and ensure access to minerals critical to clean energy technology manufacturing. Building on existing framework agreements with Chile and Argentina, the initiative seeks to foster regional growth and deepen EU-Latin America partnerships, underscoring shared values of economic development, environmental sustainability, and a just transition.

"The Inter-American Development Bank is committed to fostering sustainable development and economic growth in Latin America and the Caribbean. Through our collaborative efforts with the European Union, we aim to enhance responsible mining practices and support the region's transition to a low-carbon economy" said IDB Representative in Chile, Florencia Attademo-Hirt. “Our partnership with the European Union underscores the importance of international cooperation in addressing global challenges. By leveraging our combined expertise and resources, we can drive significant advancements in sustainable development and environmental protection across the region” she added.

The program will directly benefit thousands of people and businesses in Latin America and the Caribbean’s mining regions, promoting economic resilience, environmental sustainability, and stronger value chains for critical raw materials.

By encouraging responsible mining practices and supporting the global energy transition, this initiative is a significant step toward achieving the Sustainable Development Goals (SDGs) and addressing global climate challenges.

About Global Gateway

Global Gateway is the EU’s strategy to boost smart, clean and secure links in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a 'Team Europe approach', Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact. It aims to mobilise up to €300 billion in investments. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement.

About the IDB 

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region.