ORRAA Policy Brief: Deep Seabed Mining
We know more about the surface of the Moon than we do about the deep seabed.
Knowledge about the quantity of carbon sequestered in the seabed and the marine life that inhabits it is limited. At the same time, interest in Deep Seabed Mining (DSM) has increased driven by a growing understanding of the distribution of seafloor mineral deposits and technological advancements which have made mining the seafloor more feasible, as well as increasing demand for metals.
Proponents of DSM aim to remove these deposits from the seafloor through large-scale industrial mining activity operating at depths ranging from 200 to 6,500 meters. Yet the scope of the risks from the impacts of such large-scale industrial extraction from these fragile habitats and on the biodiversity in the water column above them, are currently unknown.
Why is this important?
The vast majority of deep-sea marine scientists, and a growing list of 27 countries (as of July 2024), from Palau to France, are advocating for a DSM moratorium, precautionary pause, or an outright ban. Given the scientific unknowns and potential collateral damage from opening the deep seabed to massive industrial extraction, as well as emerging climate and ocean risks, these countries argue for the application of a highly precautionary way forward.
The operational scale needed for seabed mining to break-even or potentially deliver a profit, together with the potential release of sequestered carbon, and the compounding of already-existing threats to marine biodiversity from ocean heating, pollution and acidification, are not currently environmentally or economically defensible.
Growing opposition
A 2022 report by the UN Environment Programme Finance Initiative states that “in their current form, there is no foreseeable way in which the financing of deep-sea mining activities can be viewed as consistent with the Sustainable Blue Economy Finance Principles”. The report provides a detailed overview of the possible reputational, regulatory and operational risks associated with DSM and outlines how financial institutions should focus on alternative strategies such as reducing the environmental footprint of terrestrial mining and supporting a transition to a circular economy.
The International Capital Market Association and the International Finance Corporation echoed this in their Blue Bond Guidance, stating that investments in “non-renewable extractive industries (e.g. offshore oil and gas, dredging, and deep-sea mining) are therefore excluded” from the definition of the Sustainable Blue Economy in supporting the issuance of credible blue bonds.
Recommendations
ORRAA and its members include private finance and insurance partners representing trillions of dollars of assets under management, together with governments, multilateral institutions, and civil society. ORRAA echoes the concerns of a growing number of financial institutions, businesses, governments scientists, and civil society with regards to the lack of a full understanding of the environmental, social and economic risks of DSM. ORRAA is also concerned that there are not strong regulatory frameworks in place to manage this activity, including the need for a more transparent, accountable, inclusive and environmentally responsible International Seabed Authority. As such, ORRAA recommends a precautionary pause on DSM until at least 2030 in ‘the Area’ (the seabed in areas beyond national jurisdictions); and for countries to not allow DSM activity within their own jurisdictional waters.
ORRAA member WWF, is leading efforts for businesses to sign up to a Statement Supporting a Moratorium on Deep Sea Mining.
To read the full ORRAA Policy Brief on Deep Seabed Mining, please click here.