Development finance and critical minerals: opportunities for supporting sustainability and inclusion through patient capital
Gu, B., Radomski, J., Ray, R., & Sanborn, C. (2025). Development finance and critical minerals: opportunities for supporting sustainability and inclusion through patient capital. Resources, Conservation and Recycling, 222. https://www.sciencedirect.com/science/article/pii/S0921344925003027
Based on a systematic review of PDFI and ECA reports, interviews, and an expert workshop, the authors find that PDFIs and ECAs affect critical minerals supply chains through three pathways: direct financial support for extraction projects, policy support for capacity building at government agencies tasked with mineral extraction ESRM, and the development of long-term country strategies for engaging with energy transitions. Despite the potential role that PDFIs and ECAs can play in environmental and social governance with a patient capital approach, their findings indicate that realities on the ground can be undermined due to inadequate oversight throughout the project lifecycle and lack of local state capacity. The research highlights multiple gaps in the ESRM preparedness of PDFIs and ECAs in supporting the governance of sustainable and inclusive mineral supply chains.
