World Bank's New Partnership to Boost Mineral Investments in Developing Countries

The World Bank and Japan—joined by Italy, South Korea, Canada, and the United Kingdom (UK)—have launched a groundbreaking new partnership

IDXChannel - The World Bank and Japan—joined by Italy, South Korea, Canada, and the United Kingdom (UK)—have launched a groundbreaking new partnership to address climate change and boost job creation.

The Resilient and Inclusive Supply-chain Enhancement—or RISE—initiative will help emerging markets and developing countries (EMDCs) increase manufacturing of clean-energy products and boost their participation in the minerals industry—leading to quality local jobs and economic growth. 

Japan, Canada, Italy, South Korea and UK have pledged an initial total contribution of more than USD40 million to RISE, and more donors are expected to contribute.

Japanese Finance Minister Suzuki Shunichi and World Bank President Ajay Banga announced the partnership on Wednesday (11/10/2023) during a launch event they co-hosted at the 2023 World Bank-International Monetary Fund Annual Meetings in Marrakech. 

Chile and India attended the event as representatives of prospective recipient countries and stressed the importance of this partnership.

“These are exactly the kinds of initiatives we need right now,” World Bank President Ajay Banga said. 

“This partnership will give developing countries the promise of a brighter future, one with a healthy economy and a livable planet. Countries will have new economic opportunities in clean energy and minerals industries; leading to jobs that help them build better lives for themselves and their families," he added.

The energy transition will create a trillion-dollar market, with tens of millions of jobs along global mineral value chains. It represents an opportunity for EMDCs to build manufacturing capacity, boost job growth, and strengthen long-term economic development.

“Japan plans to contribute a total of USD25 million to RISE to support the sustainable development of low- and middle-income countries and supply chain diversification of clean energy products. We will steadfastly advance this initiative in close cooperation with a diverse set of stakeholders,” said Japan’s Minister of Finance, Suzuki Shunichi.

The RISE partnership will help build resilient economies and foster more sustainable and diversified global mineral value chains—imperatives in the fight against climate change. By strengthening environmental policies, social standards, and good governance, the program will also eliminate some of the existing barriers to both private and public investments in critical minerals, clean-energy manufacturing, and the associated infrastructure. (WHY)