G20 backs critical minerals plan to boost inclusive growth, resilience

In its 2025 summit declaration, the G20 emphasised the establishment of the G20 Critical Minerals Framework, aimed at leveraging critical minerals as a catalyst for sustainable development, inclusive economic growth, and resilience.

The framework seeks to ensure that mineral-producing countries, particularly in the Global South, derive maximum benefit from their resources, moving beyond mere raw material exports.

The declaration noted that global economic transformations, including sustainable transitions, rapid digitisation, and industrial innovation, are driving a growing demand for critical minerals.

However, many producer countries, especially developing nations, face challenges such as underinvestment, limited technology, minimal value addition, and socio-economic or environmental constraints.

"We recognise that, as the world economy is undergoing significant changes, including sustainable transitions, rapid digitisation and industrial innovations, the demand for critical minerals will increase. We note that the benefits associated with critical minerals have not been fully realised and producer countries, especially in the developing world, are confronted with challenges of under investment, limited value addition and beneficiation, lack of technologies as well as socio-economic and environmental issues," the declaration said.

As per the declaration, the Critical Minerals Framework provides a voluntary, non-binding blueprint to promote sustainable, transparent, stable and resilient mineral value chains that address these challenges.

These included unlocking investment in mineral exploration, encouraging local beneficiation to process minerals domestically rather than exporting raw materials, and strengthening governance and sustainable mining practices.

Supporting inclusive economic growth while ensuring environmental stewardship, community participation, and supply security.

"Therefore, we welcome the G20 Critical Minerals Framework, which is a voluntary, non-binding blueprint to ensure that critical mineral resources become a driver of prosperity and sustainable development. The Framework is designed to respond to the urgent need for international cooperation to secure sustainable, transparent, stable and resilient critical minerals value chains that underpin industrialisation and sustainable development. Further, it aims to unlock investment in mineral exploration, promote local beneficiation at source, and strengthen governance for sustainable mining practices," the declaration said.

"It fully preserves the sovereign right of mineral-endowed countries to harness their endowments for inclusive economic growth, while ensuring economic, social and environmental stewardship, conservation, local community participation, and supply security. Critical minerals should become a catalyst for value-addition and broad-based development, rather than just raw material exports," it added.

The framework preserves the sovereign rights of mineral-endowed countries to harness their resources for inclusive growth. It also seeks to diversify sources, routes, markets, processing locations, and value chains, while implementing strong economic, social, and environmental standards. Additionally, it aims to make mineral value chains more resilient to disruptions such as geopolitical tensions, pandemics, or natural disasters.

The G20 declaration further encourages collaboration among governments, private-sector actors, investors, financial institutions, development partners, and local communities to unlock the full potential of critical minerals, promoting equitable development, economic growth, and global prosperity.

"To secure long term sustainable economic growth, we support increased exploration of critical minerals, particularly in developing countries; promoting diversification of mineral sources, routes, markets, processing locations, and value chains; enhanced value retention and beneficiation in mineral endowed developing countries; and the implementation of robust, non-discriminatory and relevant standards on economic, social and environmental aspects in accordance with national frameworks. We seek to ensure that the value chain of critical minerals can better withstand disruptions, whether due to geopolitical tensions, unilateral trade measures inconsistent with WTO Rules, pandemics, or natural disasters and that more producer countries can participate in and benefit from value chains," the declaration said.

"We encourage the public and private sectors, financial institutions, development partners, investors and local communities to work together to unlock the full potential of critical minerals for the benefit of local populations where these resources are abundant, and to drive sustainable and equitable development, economic growth and prosperity," it added.

Prime Minister Narendra Modi on Saturday (local time) emphasised that significant global challenges can be effectively addressed through strong international cooperation as he spoke at the G20 Summit session on disaster risk reduction, climate change, just energy transitions and food systems.

Addressing the session titled "A Resilient World - the G20's Contribution to Disaster Risk Reduction; Climate Change; Just Energy Transitions; Food Systems," PM Modi reiterated that India is committed to building a future that is human-centric, sustainable and inclusive. He noted that India's developmental approach aligns with the broader global objective of strengthening resilience against emerging risks.

The G20 Summit 2025 will conclude on November 23.