CERENA Seminar - Challenges in raw materials, focusing on the Social Licence to Operate

In this seminar of the 2026-2027 series, we will receive Joanna Kulczycka.

Securing a sustainable and resilient supply of raw materials has become one of the major challenges of the global green and digital transitions. Growing demand for critical raw materials, driven by renewable energy technologies, electromobility, digitalisation and industrial transformation, is increasing pressure on both primary extraction and secondary resource recovery. However, the challenge is not limited to the availability of geological resources, technological capacity or investment. The social and environmental dimensions of raw material production are increasingly important determinants of whether projects can be successfully developed and maintained.

The European Union's Critical Raw Materials Act (CRMA) provides an important policy framework for strengthening the resilience of European supply chains through domestic extraction, processing, recycling and diversification of international partnerships. At the same time, it explicitly recognises the importance of sustainable project development, including the prevention and minimisation of adverse social impacts, respect for human and labour rights, quality employment and meaningful engagement with local communities. These requirements highlight the growing importance of the Social Licence to Operate (SLO), understood as the ongoing acceptance of a project by local communities and other stakeholders, beyond formal legal permits and administrative approvals.

From a global perspective, the UNEP International Resource Panel's Global Resources Outlook 2024 demonstrates the scale of the challenge. Global resource extraction has increased substantially over recent decades and could rise by a further 60% by 2060 compared with 2020 levels if current trends continue. The environmental and social consequences of resource extraction and processing are unevenly distributed, raising important questions about environmental justice, the fair distribution of benefits and costs, and the responsibilities of countries and companies across global value chains.

The presentation will explore the main barriers to achieving and maintaining SLO in the raw materials sector, including environmental concerns, competition for land and water, impacts on local livelihoods, insufficient transparency, limited public participation, distrust of institutions and unequal distribution of economic benefits. Particular attention will be paid to the differences between the perspectives of mining companies, local communities, public authorities and other stakeholders, as well as the challenges faced by countries supplying raw materials to global markets.

It will also discuss how the transition from a compliance-based approach towards more participatory and partnership-oriented models could improve the social sustainability of raw material projects. This includes early stakeholder engagement, transparent communication, participatory decision-making, monitoring of social and environmental impacts, benefit-sharing mechanisms and the development of long-term relationships between industry and communities.

The presentation argues that SLO should not be treated as an additional administrative requirement or a communication exercise, but as an integral element of responsible raw material governance and project risk management. Building trust, ensuring procedural fairness and demonstrating tangible benefits for local communities are essential for translating global raw material strategies into projects that are environmentally responsible, socially acceptable and economically viable. Ultimately, securing raw materials for the green transition requires not only secure supply chains but also a socially just transition that creates value for both producing regions and society as a whole.

Sources

1. European Commission (2024). Regulation (EU) 2024/1252 – Critical Raw Materials Act, 
2. UNEP International Resource Panel (2024). Global Resources Outlook 2024: Bend the Trend – Pathways to a Liveable Planet as Resource Use Spikes.
3. European Commission, Joint Research Centre. Raw Materials Information System – Social dimension of mining and Social Licence to Operate.
4. www.proslo.eu
5. https://slohub.org/