The United States is signing an agreement with a nonprofit to spur investments in supply chains of critical minerals that adhere to environmental, social, and corporate governance (ESG) standards.
Under Secretary of State Jose Fernandez said in a Nov. 1 press release that the State Department had signed a memorandum of understanding that formalized the Securing America’s Future Energy Foundation (SAFE) as the department’s sole not-for-profit partner in the agreement.
The Minerals Investment Network for Vital Energy Security and Transition (MINVEST) is a public-private partnership with SAFE’s Center for Critical Minerals Strategy, which the department claims will better enable the private sector to invest in sustainable mineral projects outside of countries of concern such as China.
“The MINVEST public-private partnership with SAFE will allow us to engage more systematically with the private sector and establish a mechanism to accelerate investment in responsible and sustainable critical minerals projects,” Mr. Fernandez said in a prepared statement.
Notably, the State Department release said that the framework would be guided by a focus on ESG standards.
ESG is a set of metrics used to inform investment strategy that places increased importance on green technologies and social justice issues.
SAFE CEO Robbie Diamond said that MINVEST would allow the United States to better secure its supply chains by increasing cooperation with allied nations.
“The United States and its allies are going to need to mine, process, and recycle minerals to strengthen our energy and national security as well as bolster our economic competitiveness,” Mr. Diamond said in a prepared statement.
“MINVEST will expand the expertise and participation of the private sector to source these building blocks of our modern economy with the highest standards.”
It is hoped that the project will further encourage investment in strategic mining, processing, and recycling opportunities domestically and abroad, thereby diversifying the United States’ critical mineral supply chain away from China.
As such, the deal emphasizes working with major allies while building capacity globally to ensure that supply chains are not dependent on foreign entities of concern.
The State Department described SAFE as a “nonpartisan” organization dedicated to diversifying the United States’ fuel sources and other supply chains.
The new partnership, it said, will help the United States, its allies, and partners recognize common goals including safer supply chains and more sustainable infrastructure.
