Creation of Global Mechanism for Natural Resources Governance - UNIDO Study Guide at PIMUN 2015...

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28 31 May Chair: Angel Versetti CO-Chair: Abdessalam Ben Hammouda Rapporteur: Franziska Krüger Study Guide 2015 http://pimun.epanu.org/ UNITED NATIONS INDUSTRIAL DEVELOPENT ORGANISATION

Transcript of Creation of Global Mechanism for Natural Resources Governance - UNIDO Study Guide at PIMUN 2015...

28 – 31 May

Chair: Angel Versetti

CO-Chair: Abdessalam Ben Hammouda

Rapporteur: Franziska Krüger

Study Guide

2015

http://pimun.epanu.org/

UNITED NATIONS

INDUSTRIAL DEVELOPENT

ORGANISATION

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Table of Contents

Introduction of Chairs .................................................................................................................. 1

About UNIDO................................................................................................................................ 2

Topic A: Creation of global mechanism for natural resources governance ............................ 3

I. Historical Overview and Introduction of Issue ............................................................... 3

II. Background Information ............................................................................................... 4

III. Existing UN Legal Instruments on Natural Resources ............................................... 8

IV. Examples of International Governance of Natural Resources ................................... 9

V. Conclusion and Suggested Direction of the Committee ............................................... 11

VI. Further Sources for Consultation................................................................................... 12

Topic B: Development of framework for labour and environmental standards in mining

and recycling industries. ............................................................................................................. 13

I. Introduction ...................................................................................................................... 13

II. Circular economy ......................................................................................................... 13

III. Lack of framework for Labour ................................................................................... 14

IV. Environmental issues ................................................................................................... 16

V. Enhancing framework for labour and environmental standards ............................... 17

VI. Conclusion ........................................................................................................................ 18

VII. Useful resources: .............................................................................................................. 19

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Introduction of Chairs

Angel Versetti, Chair

Hello everyone, my name is Angel, and you can find all the usual stuff about my work and studies

on google. Instead, I’d like to offer all delegates of UNIDO at PIMUN something big to be excited

about:

Our committee is not going to be a simulation! Thanks to the partnership with World Resources

Forum, this year’s UNIDO committee at PIMUN will be working on the topic of actual relevance

to industrial development. In case of successful adoption of resolution on creation of global

mechanism for natural resources governance, it will be reviewed by the Secretariat of World

Resources Forum in Switzerland. If the resolution adopted and ideas proposed within it are deemed

original, effective and realistic by the Secretariat, the document may be presented at World

Resources Forum 2015 in Davos to a range of high-profile guests who will include several

European Ministers of Environment, members of the European Parliament, the European

Commission, UNEP IRP, the Club of Rome and Ellen MacArthur Foundation amongst other

distinguished participants.

Thus it will be your chance to shine and offer your best and most creative solutions for the

challenging topic of natural resources governance. This is an opportunity to make your voices

heard by senior-level international policymakers. Just do remember that the classical rules of MUN

apply, which means that you must defend the national interests of the country you are representing!

Your resolution needs to accurately reflect the political realities in order to serve as a valuable

proposal for the actual intergovernmental negotiations.

I am sure this will be an amazing conference. See you soon in Paris!

Abdessalam Ben Hammouda, Co-Chair

Hi everyone. My name is Abdessalam; a master degree student specialized in English literature,

civilization and linguistics and a 22 -year- old of age. I am from Tunisia (a country that initiated

the Arab Spring and paved the way for watershed events that changed its national and international

position in a swift-changing world). My infatuation about travelling the globe and participating in

outstanding events such as Model United Nations and African Union Simulations is one of the

major reasons behind my participation in Pimun. In addition to that, the City of Lights is one of

my favorite destinations and a picturesque place which is culturally and linguistically close to the

Tunisian atmosphere. I chose UNIDO committee because it is considered to be the most efficient

body of the United Nations with 171 member states. The topics included are also of great

significance. Indeed, the issues of diversity and refugees are overwhelming challenges to the

development of economies. These latter encapsulate almost all sectors of societies. It is in this light

that our understanding of those topics constitutes a pillar for success and prosperity. I am certain

that the overall ambience of the committees will be amazing. I am looking forward to working

with motivated delegates who are passionate about changing the world. Best regards, Abdessalam

Ben Hammouda.

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About UNIDO

The text in this sub-section is copied from the official “Who we are” web-page of UNIDO and

only serves educational purposes for this Model United Nations.

UNIDO is the specialized agency of the United Nations that promotes industrial development for

poverty reduction, inclusive globalization and environmental sustainability. The mandate of the

United Nations Industrial Development Organization (UNIDO) is to promote and

accelerate inclusive and sustainable industrial development in developing countries and economies

in transition. UNIDO currently has 169 Member States.

UNIDO Headquarters in Vienna, Austria. Source : UNIDO

In recent years, UNIDO has assumed an enhanced role in the global development agenda by

focusing its activities on poverty reduction, inclusive globalization and environmental

sustainability. The Organization draws on four mutually reinforcing categories of services:

technical cooperation, analytical and policy advisory services, standard setting and compliance,

and a convening function for knowledge transfer and networking.

UNIDO's vision is a world where economic development is inclusive and sustainable and

economic progress is equitable. The Organization focuses on three main thematic areas:

Poverty reduction through productive activities Trade capacity-building Energy and environment

The Organization is recognized as a specialized and efficient provider of key services meeting the

interlinked challenges of reducing poverty through productive activities, integrating developing

countries in global trade through trade capacity-building, fostering environmental sustainability in

industry, and improving access to clean energy.

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Topic A: Creation of global mechanism for natural resources governance

I. Historical Overview and Introduction of Issue

Natural resources have played a pivotal role in economic development of humanity since

prehistoric times when humans started processing first materials leading to the Stone Age and

emergence of proto-civilisations. At later stages humans learned to smelt and work metals brining

the Bronze Age and Iron Age whereby civilisations shaped and economic development became

more sophisticated. Over centuries, empires and economic powerhouses rose and fell on extracting

and processing raw materials and fighting wars for precious metals and minerals. The Industrial

Revolution led to increased consumption of fuels, and large-scale energy production became a

necessity to satisfy the ever-growing needs of economies. As the consumer base for a variety of

products, such as cars, air travel and a wide range of electronic devices increased exponentially

over the XX century, a new phenomenon became increasingly apparent: our wants are unlimited,

but the carrying capacity of our planet is not.

Historical overview of consumption of natural resources over XX century. Source: MIT MSL

With increasing pressure on natural resources, their availability has become scarcer, leading to

shortages of supply and large volatility of prices in metals, minerals and fuels, which in turn made

the markets unstable and prone to collusion and speculative attacks. Shortage of critical metals

amongst other things hinders innovation and sustainable development, as the generators of

renewable energy, such as solar panels, wind-mills and dams themselves require non-renewable

metals and minerals to be produced. Thus inefficient distribution and management of natural

resources may hinder the sustainable development agenda, especially on environment- and energy-

related sub-targets. Furthermore, even though agricultural goods are not considered as part of

natural resources for the purposes of UNIDO committee, prices of food do depend on availability

of natural resources, as growing and delivering food requires both fuels and machinery. Thus

effective governance of natural resources would also be a contributing factor towards securing

stability of pricing of agricultural products.

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Illustration of volatility of global prices for base industrial metals. Source: InfoMine.com

A global mechanism for natural resources governance is an ambitious proposal and likely to meet

significant resistance from a variety of actors, not least member states themselves, since raw

materials and natural resources constitute one of the innermost aspects of national economies and

sovereignty. Thus giving up even part of governance of their national resources to a supra-national

entity is likely to be a contentious issue. At the same time, the need for effective economic

development, achieving the sustainable development agenda and stabilising markets for

commodities is pressing enough to call for an international debate on the issue. Moreover, some

solutions for global governance of certain types of natural resources already exist: OPEC and IEA

for oil and petroleum markets, Euratom and IAEA for nuclear materials and energy, WLPGA for

liquefied-petroleum gas and IOMMMS for metals and minerals. Only IAEA, with its 164 member

states and close affiliation with the UN, has a truly international outreach. For metals, minerals

and fossil fuels there are no comparable alternatives yet.

II. Background Information

Natural Resources, What Are They?

World Resources Forum identifies the following, non-exhaustive, groups of natural resources:

fossil fuels, metals, minerals and biomass from agriculture, forestry and fisheries. Thus for the

purposes of UNIDO committee sessions, all these groups can be considered or, if the general

consensus so indicates, priority groups of resources can be chosen. Delegates should be aware that

agricultural goods and forest management do not fall within the competency of UNIDO and

therefore can be referred to and used in arguments, but cannot form part of the final resolution on

the proposed global mechanism for natural resources governance.

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Complex Web of Bilateral Agreements on Natural Resources

Currently, the vast majority of agreements between countries on governance or exchange of natural

resources are bilateral and there is no institution or international organisation overseeing the

process on a global scale. Such agreements include exchange of natural resources for building

infrastructure, such as bilateral agreements between the governments of China and Nigeria;

minerals supply, such as those between Morocco and the European Union; or energy provision

agreements, such as that between Mexico and the United States.

Illustration of complexity of multiple bilateral deals within trade agreements only. The full

illustration of bilateral agreements on resources would only consist of lines. Source: Asia-Pacific

Memo

The problem of such an arrangement is a complex web of bilateral agreements on exchange or

management of natural resources, which are not transparent. Lack of transparency on such

agreements leads to a possible conflict of interest between profit generation or strategic acquisition

of commodities against sustainable development and fair trade. Various reports exist in the media

of unfair deals on such commodities, whereby the economically stronger negotiating party is able

to put pressure on the weaker party and force them into entering unfavourable deals.

This is particularly worrying for the least-developed countries in the world, many of which are

well-endowed in minerals and fossil fuels, yet are unable to escape the poverty trap, which among

other things is reinforced by secretive dealings of governments. As a result, least-developed

countries sell off unprocessed strategic commodities at low prices and often have insufficient funds

to build processing facilities which would enable them to move up the value chains and sell

processed natural resources at higher prices, enabling them to improve living conditions of their

citizens.

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Further problem that lack of transparency creates is unstable supply and volatile prices for some

of the key industrial metals and minerals. A bilateral agreement between a large economy and a

country where rare metals or minerals are found could result in shortage of these rare materials for

other countries with similar industrial needs.

World Trade Organisation member states are currently obliged to report their bilateral and

multilateral Free Trade Agreements to the WTO Secretariat. It has ensured a high level of

transparency in international tariff agreements. Similar mechanisms for metals and minerals are

currently impossible due to lack of designated institution or organisation that would oversee and

compile a database of such agreements.

Carrying Capacity of Our Planet

Another important aspect for natural resources governance is the need to reshape the global pattern

of demand for raw materials to ensure that the carrying capacity of the planet is not exceeded. One

possible scientific instrument to assess the global pattern of raw materials availability versus

demand is ecological footprint. Ecological footprint is a measurement tool expressing the amounts

of land and water that are required to satisfy economic demand of a given country. It takes into

account a variety of economic needs, including water, farmland, forests and minerals and indicates

the regenerative capacity of the planet towards a given demand for resources. As of 2015, most

industrialised nations are unable to satisfy their industrial needs for raw materials domestically.

According to Global Footprint Network, Japan faces the highest imbalance of natural resources

versus industrial needs amongst the largest industrialised economies; Japan’s energy and industrial

requirements for its automotive, electronics, construction and heavy industry sectors exceeds its

locally available supplies by an average of 1’100% (i.e. 11 Japans would be needed to enable it to

produce at current levels without importing raw materials and commodities. Many other large

global economies, including the USA, EU and China have similarly exhausted many of their

domestically available deposits of metals or minerals and have to import them from abroad,

creating imbalances of over 100% for various industrial sectors.

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Map of metals imports (bulging countries means high net importers of metals; shrinking countries

means high net exporters of metals). Source: WorldMapper.Org

On the global scale the demand for natural resources already exceeds the carrying capacity of the

planet by 41%. While this number may not seem as drastic as statistics above, it is more dangerous

and significant for a simple reason: on a planetary level, we have nowhere else to import “in

deficit” resources to our planet. Furthermore, given the latest projected economic development and

demographic patterns, by 2050, when the population of the planet should exceed 10 billion people

and a range of countries in developing regions will have undergone the process of industrialisation,

the imbalance is projected to reach 100% and thus two Earths will be needed to satisfy the global

economic demand for natural resources. This applies to the natural resources in general, including

resources and commodities that are not part of this UNIDO session. However, metals, minerals,

fossil fuels and biomass have already become increasingly scarce and available supply is only

expected to shrink in the foreseeable future. Delegates are encouraged to research global deposits

and markets of various relevant natural resources as well as consult any national publications of

geological surveys or other snapshots of natural resources that give an overview on this topic.

Some examples are given below.

Extinction of Industrial Metals

There are metals heavily used for industrial purposes that are expected to become extinct (i.e. no

longer being available for extraction) within the next 40 years. They include precious metals gold,

platinum and silver, which are used for production of superconductors, computer and smartphone

chips and space industry; strategic metals copper, lithium, nickel and zinc, which are used in a

broad spectrum of industrial production and construction; and rare elements uranium, indian and

tantalum, which are used for high-precision and advanced technology production. Coupled with

an expected exhaustion of available deposits of natural gas and oil within the next 40 years, the

extinction of metals will only exacerbate the looming crisis of production and shortages of

productive materials and may threaten the global peace by spurring international wars for ever-

dwindling natural resources.

Natural Resources in Conflict Zones

One of the aspects of global governance of natural resources where international cooperation has

been strong is prevention of trade in fossil fuels, minerals and other commodities with entities that

are involved or suspected of involvement in systematic violation of human rights and support of

terrorism in areas of armed conflict. Cooperation in this sector was achieved due to serious security

implications, rather than for the sake of creation of global governance of natural resources. At the

same time, frameworks and mechanisms that were developed for this purpose created rudimentary

governance of commodities supply chains in clearly-defined limited areas.

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Forced child labour in a gold mine in the conflict zone of the Democratic Republic of Congo.

Source: IEEE Spectrum

III. Existing UN Legal Instruments on Natural Resources

In 1962, before the issue of scarcity of raw materials became recognised as a significant problem,

the General Assembly of the United Nations passed the Resolution 1803 which firmly asserted the

permanent sovereignty of individual “peoples and nations” over their natural wealth and resources

and gives them full freedom to explore, develop and dispose of these resources as they see fit.

Furthermore it allows for nationalisation, expropriation and requisitioning of natural resources

with “appropriate” compensation to the owner when “public utility, security or national interest”

are concered, terms broad enough to give unlimited political leverage to countries with significant

amounts of natural resources.

In 1974, the General Assembly of the United Nations passed the Resolution 3281 introduced a

notion of cooperation and mutual consultation when exploiting natural resources which are shared

between two or more countries. The goal is to achieve “optimum use of such resources”. The

Resolution also legally recognised the right of states to associate in organizations of primary

commodity producers to ensure sustained growth. Interestingly enough, Article 6 introduces a

“duty“ for states to contribute to development of international trade of goods and arrangements of

long-term multilateral commodity agreements. While not being specific to the details, the

Resolution thus creates a certain soft obligation for countries to be inclusive in their distribution

of natural resources. That same year, the Resolution 3202 mentioned that amongst efforts that

should be made to enable developing countries successfully undergo the process of

industrialisation, developed countries and UN agencies should “contribute to setting up new

industrial capacities including raw materials and commodity-transforming facilities as a matter of

priority”. Thus the issue of technology transfer for extractive industries of developing countries

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also became a topic on discussion for the early attempts to establish some rudimentary degree of

governance of natural resources.

The 1970s, with the Oil Shocks having shaken the global economy, became a decade where the

debate on global management of natural resources was taken with unprecedented seriousness. Thus

in 1976 the UNCTAD Proceedings of the Conference Report lists “the need for change in the

world commodity economy” and proposed development of “an integrated programme for

commodities”. In particular, proportion between export prices and consumer prices for natural

resources were discussed, as well as the distribution systems for commodities of strategic interest.

Most recently, discussions and resolutions regarding natural resources focused around supply

chains in conflict zones. Thus in 2015, the Resolution 2199 was adopted by the UN Security

Council that prohibited purchase of natural resources from ISIL, ANF and other Al-Quida-

affiliated groups. While clearly aimed at prevention of revenue-generation for terrorist activities,

this Resolution also shows that with sufficient determination and will of the member states it is

possible to restrict sources of supply of raw materials, even if it leads to global increase in price.

Similar resolutions were passed on restricting trade of natural resources in conflict zones and

reports were written by governments of most countries as well as the EU, ASEAN, OECD and the

African Union. A notable document the UN created is the Due Diligence Guidelines for the

Responsible Supply Chain of Minerals, which developed a framework for the public and private

sector to identify and restrict natural resources that provided support to the conflict in the DRC.

Many of its provisions can also be applied to other similar cases.

IV. Examples of International Governance of Natural Resources

Delegates for UNIDO committee may find it useful to explore various existing examples of

institutions and organisations dealing with governance of natural resources at the international

level. The suggestions below are non-exhaustive and delegates are expected to research further

possible examples. Furthermore, simply transposing mechanisms of any of these organisations for

metals and minerals is unlikely to lead to a fruitful outcome. Delegates should be aware of strategic

and economic peculiarities of raw materials and be creative as well as realistic in their proposals

for the construction of the global mechanism for natural resources governance. Examples are

below:

OPEC, Organisation of Petroleum Exporting Countries, is possibly the widest-known

international organisation that has a framework for governance of a commodity, in this case oil.

Comprised on 12 petrol-exporting economies, the mandate of OPEC is to “coordinate and unify

the petroleum policies" of its members and to "ensure the stabilization of oil markets in order to

secure an efficient, economic and regular supply of petroleum to consumers, a steady income to

producers, and a fair return on capital for those investing in the petroleum industry.” OPEC

represents a collective act of sovereignty by its individual member states whose Ministers of Oil,

Mines and Energy meet biannually at the OPEC Conference and reach decisions on oil-related

policies, based on the principles of unanimity and one-member-one-vote.

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WLPGA, World Liquefied Petroleum Gas Association, is an international umbrella organisation

whose main mission is to support the development of LPG markets, facilitate innovation and

technology transfer and promote compliance with standards, good business and safety practices

for LPG. With official offices present in 125 countries the organisation has a high international

outreach, working with both private and public sector. Since 1989 WLPGA holds a Special

Consultative Status with the United Nations Economic and Social Council and has a further

partnership with the World Bank, advising on economic development agenda with respect to LPG

markets and technologies.

UNEP IRP, United Nations Environmental Programme - International Resource Panel, was

launched by UNEP in 2007 with the aim to build and share the knowledge needed to improve the

use of resources worldwide. The Panel consists of eminent scientists, highly skilled in resource

management issues. Their reports distil the latest scientific, technical and socio-economic findings

around global resource use. They provide advice and connections between policymakers, industry

and the community on ways to improve global and local resource management. The Panel includes

scientists and governments from both developed and developing regions, civil society, industrial

and international organisations. UNEP IRP has published 12 reports on a variety of topics related

to natural resources management including metal flows and cycling, land use and biofuels. They

may serve as a useful source of inspiration for discussions of the session. Link to all twelve reports

can be found in the last section of Topic A in this Study Guide.

WRF, World Resources Forum, is a non-profit international organisation that serves as a platform

connecting and fostering knowledge exchange on resources management amongst business

leaders, policy-makers, NGOs, scientists and the public. The organisation aims to make its vision

of sustainable usage of resources worldwide a reality through organization of high-level

international conferences and capacity-building workshops, dissemination of relevant research

findings and scientific discussions, development of resource efficiency indices, setting standards

for sustainable resource use, creation of opportunities for financing resource efficiency projects as

well as through engagement with young leaders and the wider public. Thus WRF serves as an

example of soft governance of resources by offering consultative scientific reports and findings to

shape the global policy on natural resources governance.

European Energy Union is an upcoming large-scale initiative currently developed by the

European Commission with the aim to integrate European energy markets and coordinate a variety

of policies in energy, industrial and environmental sectors across the EU. Management of natural

resources is one of the main solutions proposed by this programme and includes flow of

commodities and infrastructure development for processing of raw materials. The ultimate goal of

this programme is to enable sustainable development, secure energy markets and off-set the

climate change.

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Lifecycle of metals. Various international organisations may deal with one or several stages of

metals production, consumption and recycling. Source: UNEP IRP

V. Conclusion and Suggested Direction of the Committee

As delegates may discover from this Study Guide and further research on the topic, creation of a

global mechanism for governance of natural resources is a monumental task with a variety of

policy implications in the most sensitive aspects of national interests, including ownership and

control over natural resources, transparency of strategic commodity deals and industrial

development.

There are many questions to ask: Is there enough political willpower amongst the UNIDO member

states to limit their autonomy in negotiating deals on metals, minerals, fossil fuels and biomass?

To what extent are member states ready to develop and be part of at least a consultative mechanism

for individual countries to report on their ongoing and concluded negotiations on natural resources

projects and deals? How can international cooperation in natural resources governance be

realistically implemented? What compromises will member states have to offer to achieve

sustainable development, whereby the international community can consult and suggest policies

to individual countries on natural resource governance?

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These questions are complex and are likely to be met with resistance by dominant economic

players who have so far benefitted from the fragmentation, complexity and secrecy of international

negotiations on and management of natural resources. At the same time, it is clear that the whole

world is facing a significant threat from exceeding the carrying capacity of our planet which could

create a significant threat to economic prosperity and security of all countries involved. And thus

UNIDO member states will need to prepare to tackle this urgent issue with due awareness of what

is at stake and complete the negotiations with a solid resolution.

VI. Further Sources for Consultation

1) World Resources Forum, Resources Snapshots for individual metals and minerals:

http://www.wrforum.org/publications-2/resource-snapshots/

2) European Commission, Energy Union, http://ec.europa.eu/priorities/energy-

union/index_en.htm

3) Fair Politics, The EU Raw Materials Policy and Mining in Rwanda,

http://www.fairpolitics.nl/doc/Impact%20Study%20FINAL.pdf

4) Global Witness, UN Report on Congo’s Minerals, https://www.globalwitness.org/library/un-

report-calls-action-clean-congo%E2%80%99s-minerals-trade-and-end-impunity

5) OECD, Due Diligence for Minerals,

http://www.oecd.org/corporate/mne/GuidanceEdition2.pdf

6) OHCHR, Sovereignty over Natural Resources, GA Resolution 1803,

http://www.ohchr.org/Documents/ProfessionalInterest/resources.pdf

7) OPEC, Statute of the Organisation,

http://www.opec.org/opec_web/static_files_project/media/downloads/publications/OPEC_Stat

ute.pdf

8) PWC, Sustainability Report on Scarcity of Minerals and Metals,

https://www.pwc.com/en_GX/gx/sustainability/research-insights/assets/impact-of-minerals-

metals-scarcity-on-business.pdf

9) UNCTAD, Resolution 3202 on Economic Order and Industrialisation,

http://investmentpolicyhub.unctad.org/Download/TreatyFile/2775

10) UNCTAD, Proceedings of the 1976 UN Conference on Trade,

http://unctad.org/en/docs/td218vol1_en.pdf

11) UNECA, Making the Most of Africa’s Commodities,

http://www.uneca.org/sites/default/files/publications/unera_report_eng_final_web.pdf

12) UNECE, Fossil Energy and Mineral Resources,

http://www.unece.org/fileadmin/DAM/energy/se/pdfs/UNFC/UNFCemr.pdf

13) UNGA, Charter of Economic Rights and Duties of States, http://www.un-

documents.net/a29r3281.htm

14) UNSC, Resolution 2199 on Trade in Resources,

http://www.un.org/press/en/2015/sc11775.doc.htm

15) UN News, Due Diligence Guidelines on Minerals,

http://www.un.org/News/dh/infocus/drc/Consolidated_guidelines.pdf

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16) UNEP IRP, Publications on Natural Resources and Governance,

http://www.wrforum.org/publications-2/partner-publications/unep-irp-publications/

17) USIP, Natural Resources and Violent Conflict,

http://www.usip.org/sites/default/files/file/08sg.pdf

18) WLPGA, Policy Issues: http://www.wlpga.org/policy-issues

19) WLPGA, Statute and Mission: http://www.wlpga.org/about-wlpga

20) WTO, Minerals Trade: https://www.wto.org/english/res_e/reser_e/ersd201001_e.pdf

Topic B: Development of framework for labour and environmental standards in mining and

recycling industries.

I. Introduction

The UN and numerous organisations have always sought to develop ways and mechanisms of

improving the overall economic conditions across the globe. Developing a zero waste programme

that is the core of circular economy was one of the most important industrial victories many

countries scored. However, despite this big banging achievement that defined the novel inclination

many industries took, a colossal number of countries and more particularly developing ones have

struggled with embroidering and implementing standards for workers in mining and recycling

sectors.

In this brief study guide, we will rummage through the concept of circular economy without

moving too much much into details. Then, we will tackle the issue of lack of framework for labour

and see some case studies. After that our focus will be directed to environmental problems caused

by industries and circular economy in particular.

Right after, we will be moving to the development and enhancement of frameworks for workers

and for the environment in mining and recycling industries.

II. Circular economy

The industrial revolutions brought with them a growing amount of waste. This latter emanates

from the very new sense of economy which revolves around the following points: “take-make-

consume and dispose”.

This linear model urged many industries to think of a more efficient economical system that is

capable of dealing with the availability and disposal of products. The solution was the circular

economy. It is an attempt to rethink of how to reuse, restore and repair existing materials and

products. This system basically states that any kind of waste can turn out to be a resource.

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In January 2012, a report was released entitled Towards the Circular Economy: Economic and

business rationale for an accelerated transition. The report, commissioned by the Ellen MacArthur

Foundation and developed by Mckinsey & Company, was the first of its kind to consider the

economic and business opportunity for the transition to a restorative, circular model. Using product

case studies and economy-wide analysis, the report details the potential for significant benefits

across the EU.

Illustration of circular economy model. Source: FCC Environment UK

III. Lack of framework for Labour

Workers are almost always the most affected scapegoats. Idustries, whether dealing with

production or disposal of resources, engender critical situations for workers and cause gloomy

working conditions that violate human rights resolutions. Here are some examples of those

fettering issues that have been reported and are still hover around our world especially in the midst

of developing countries like Libya, Mali, India and even richer countries like China and U.S.

Factory workers are coerced, in countries like India, to face long hours, poor working conditions,

and job instability. During economic recessions many workers lost their jobs or faced sharp pay

cuts. New employees found the discipline and regulation of factory work to be very different from

other types of work and thus were unable to work effectively. Work was often monotonous because

workers performed one task over and over. It was also strictly regulated. Working hours are long

averaging at least ten hours a day and six days a week for most workers, even longer for others.

For men and women from agricultural backgrounds these new conditions prove challenging

because farm work tends to be more flexible and offers a variety of work tasks.

Industries conditions are also poor and, in some cases, deplorable. Lack of effective government

regulation has always led to unsafe and unhealthy work sites. In the late nineteenth century more

industrial accidents occurred in the United States than in any other industrial country. Rarely did

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an employer offer payment if a worker was hurt or killed on the job. As industries consolidated at

the turn of the century, factories grew larger and more dangerous. By 1900 industrial accidents

killed thirty-five thousand workers each year and maimed five hundred thousand others, and the

numbers continued to rise. The general public became concerned with industrial accidents only

when scores of workers were killed in a single widely reported incident, such as the many coal-

mine explosions or the tragic Triangle Shirtwaist Company fire in 1911. In one year alone 195

workers in steel and iron mills were killed in Pittsburgh, Pennsylvania.

Unsafe work conditions in eWaste Recycling Sector. Source: Government of India

Child labor is another very important issue we should look at and scrutinize. The UNICEF reports

that in the 1990s, child labour has found a new niche in the rapidly expanding export industries of

some developing countries. In one small carpet factory in Asia, children as young as five were

found to work from 6 in the morning until 7 at night for less than 20 cents a day. In another, they

sat alongside adults for 12 to 14 hours in damp trenches, dug to accommodate the carpet looms on

which they wove. In a garment factory, nine-year-olds worked around the clock sewing shirts for

three days at a stretch, permitted only two one-hour breaks, during which they were forced to sleep

next to their machines. Extracting such high human cost, child labour is nevertheless cheap. A

shirt that sells in the United States for $60 can cost less than 10 cents in labour.

To make the situation clearer and with the style of the news, the Mail Online website summarizes

the overall conditions of the Chinese factories making iPads for Apple with the following titles:

Forced to stand for 24 hours, suicide nets, toxin exposure and explosions': Inside the Chinese

factories making iPads for Apple

'Working excessive overtime without a single day off during the week'

'Living together in crowded dorms and exposure to dangerous chemicals'

Two explosions in 2011 in China 'due to aluminum dust' killed four workers

Almost 140 injured after using toxin in factory, reports New York Times

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IV. Environmental issues

Mining and recycling can cause damaging problems to the environment .Mining including all of

its types (Open pit, Underground Mining, In situ leach, Brine Mining..) leaves nature with

implacable environmental scars that threathen the lives of humans and other species.

Underground mining, for instance, can release toxic compounds into the air and water. As water

takes on harmful concentrations of minerals and heavy metals, it becomes a contaminant. This

contaminated water can pollute the region surrounding the mine and beyond (Miranda, Blanco-

Uribe Q., Hernandez, Ochoa G., & Yerena, 1998). Mercury is commonly used in as an

amalgamating agent to facilitate the recovery of some precious ores (Miranda et al., 1998).

Mercury tailings then become a major source of concern, and improper disposal can lead to

contamination of the atmosphere and neighboring bodies of water.

Most underground mining operations increase sedimentation in nearby rivers through their use of

hydraulic pumps and suction dredges; blasting with hydraulic pumps removes ecologically

valuable topsoil containing seed banks, making it difficult for vegetation to recover (Miranda et

al., 1998). Deforestation due to mining leads to the disintegration of biomes and contributes to the

effects of erosion.

Recycling industries, moreover, can be very dangerous to the environment. The International

Nickel Study Group conducted a research warning about the recycling of Nickel containing

products. The Study Group affirms that :"All metals and metal compounds have a certain level of

toxicity and may cause adverse effects on living organisms. Nickel in certain forms and under

particular circumstances, may generate detrimental environmental (including health and safety)

effects, notwithstanding the fact that it is considered to be a vital element for public health by some

scientists."

Nickel is but a mere example to the numerous damages the recycling industries may cause, more

particularly on the environmental side.

Environmental degradation as a result of mining activities in Mexico. Source: BBC

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V. Enhancing framework for labour and environmental standards

After stating the issues related to mining and recycling industries especially in the heart of

developing countries, delegates are requested to come up with lucid resolutions for the already

stated issues and for many others (that we did not mention on purpose).

These resolutions should highlight the most suitable standards for workers in mining and recycling

sectors worldwide in such a way as to restrict those defects and damages and to embroider a future

of clean environment.

In order to work approprietly, delegates are encouraged to enlarge the scope of their research via

looking into international , national or continental attempts to propose powerful solutions for these

stumbling blocks for the prosperity of the nations, the worker's dignity and cleanness of our

environment.

Delegates can read about the 1992 World Summit on Sustainable Development (WSSD) and

resolutions for mining in terms of the WSSD Johannesburg Plan for Implementation (JPOI) as

very good examples.

Indeed, those resolutions mainly highlight the following points:

I. Enabling South Africans to make balanced and informed decisions regarding the extraction of

mineral resources and their utilisation.

II. Enabling South Africa to measure and assess progress towards sustainable development

objectives in the minerals sector.

III. Minimizing the impacts and risks of mineral resource development, use and management on

the health and safety of South Africans.

IV. Optimising environmental management in the sector.

V. To develop and improve tools and mechanisms to ensure improved compliance in the sector

and to improve regulatory capacity.

VI. Poverty alleviation and mineral resource development.

So, mainly, delegates will be expected to try to make similar or even better attempts in order to

solve the problems that our topic proposes.

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VI. Conclusion

It is highly significant to think and rethink of the possible side effects any industrial policy,

programme or regulation might engender. Industries are not only loci for work, they are also an

important society where workers meet, communicate and even demonstrate against the rigidity of

work. By creating recycling industries, we thought that the problem of waste and pollution has

follen into oblivion, however, it is still considered to be a serious and damaging issue industires

worldwide face. Therefore, thinking of new business models, industrial and economic programmes

becomes a necessity and a sine qua non for the devolopment of the conditions of workers as well

as the cleanness of the environment.

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VII. Useful resources:

http://www3.weforum.org/docs/WEF_ENV_TowardsCircularEconomy_Report_2014.pdf

http://ec.europa.eu/environment/circular-economy/index_en.htm

http://www.wrforum.org/projects/sustainable-recycling-industries-sri/

http://www.dailymail.co.uk/news/article-2092277/Apple-Poor-working-conditions-inside-Chinese-

factories-making-iPads.html

http://web.mit.edu/12.000/www/m2016/finalwebsite/problems/mining.html

http://www.insg.org/recycling.aspx

http://www.gov.za/sites/www.gov.za/files/stratframe_susdev_minerals_0.pdf

http://www.empa.ch/plugin/template/empa/*/133367/---/l=2

http://www.sustainable-recycling.org/perch/resources/sri.c1flyereng-2.pdf

http://www.ohchr.org/EN/Issues/Environment/ToxicWastes/Pages/SRToxicWastesIndex.aspx