EU consumption's hidden link to global deforestation caused by mining

Sebastian Luckeneder, Stefan Giljum, Victor Maus, Laura J. Sonter and Manfred Lenzen

No 48/2024, Ecological Economic Papers from WU Vienna University of Economics and Business

Abstract: The integration of metals and minerals into global supply chains leads to mining impacts that manifest far from the location of final consumption. To address these distant impacts, new legal frameworks are emerging that require companies to exercise due diligence across their entire supply chains. However, accurately quantifying local mining impacts and tracing them from production to consumption remains challenging. This study examines global flows of forest loss within mine sites from 2001 to 2019, with a focus on final demand in the European Union. By integrating satellite imagery with a multi-region input-output framework, we find that 12% of global forest loss caused by mining is linked to EU consumption, with 89% of these impacts occurring outside EU borders. The study identifies variations in impact intensities across global mining areas, commodities, and European industry sectors, offering actionable strategies and highlighting challenges for responsible material sourcing in consumer and producer regions.

Date: 2024-09
New Economics Papers: this item is included in nep-agr, nep-eec, nep-env and nep-int
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