Low-carbon economies will lead to increased demand for critical raw materials. Clean energy technologies require 50 per cent more minerals, and electric cars require six times the inputs compared to traditional vehicles. Limited information and extraction challenges make new critical raw materials production projects difficult. Raw materials can aid sustainable development in developing countries through economic value generation, infrastructure development, FDI attraction, job creation, export opportunities, technology transfer and knowledge exchange. However, it also significantly impacts mining, energy, raw materials, and emissions. To overcome these challenges, natural resources must be leveraged to create sustainable employment and foster a low-carbon economy. Member States must build capacity for sustainable production, use, and reuse of raw materials to ensure viability. This capacity building is particularly urgent in those Member States with limited experience with extractive industries.

This project addresses the challenges in producing raw materials necessary for low-carbon energy, mobility, and digital transitions and their associated economic, social, environmental and governance impacts. Specifically, it centres on lithium, cobalt, and rare earth elements. The objective is to assist Member States in implementing international best practices that align with the principles and requirements of the United Nations Resource Management System (UNRMS). This system promotes responsible resource management and incorporates a globally standardized classification and reporting system. The project's ultimate goal is to promote sustainable development within the raw materials industry in a just and inclusive manner, a crucial aspect of the global transition to a low-carbon economy.

The project aims to enhance capacities of selected countries to achieve sustainable and circular low-carbon transitions in producing critical raw materials. It promotes circularity, innovation, and transparency while strengthening competencies and capabilities for a just transition. The project centers on state responsibilities, effective environmental management, integrated resource management, social engagement, and value addition. It supports supply chain services, beneficiation, and optimizing resource efficiency while ensuring community and occupational health and safety.