European Geologist Journal 59

The CIRAN Project: Sustainability Strategies and Social Acceptability for Critical Raw Materials Supply

 

by Mauro Lucarini^1*, Giovanni De Caterini¹, Claudia Delfini¹, Gabriele Leoni¹, Francesco Pizzocolo² and Giorgio Vizzini^3,4

¹Geological Survey of Italy Department, Institute for Environmental Protection and Research (ISPRA)

²TNO, Geological Survey of the Netherlands

³CN-LAB, National Center for the National Networks of Laboratories, Institute for Environmental Protection and Research (ISPRA)

⁴National Research PhD in Cultural Heritage Sciences, University of Rome Tor Vergata

Contact: mauro.lucarini@isprambiente.it

Abstract

The global economy is facing challenges such as climate change and the depletion of natural resources, driving the transition towards sustainability. To achieve the goals of climate neutrality and the energy transition, increased extraction of critical raw materials (CRM) for clean energy technologies is necessary, but this must be done in compliance with ESG criteria. The EU project CIRAN develops policies to balance environmental protection with access to CRMs. A key element is the involvement of local communities in inclusive decision-making processes, without compromising sustainability or social justice. Additionally, the adoption of the GIASONE method is suggested to assess the sustainability of resources within a circular economy framework, reducing the need for new resources. The governance of mineral resources needs to be reformed to meet the SDGs and protect future generations.

This work is licensed under a Creative Commons Attribution 4.0 International License.

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1. Introduction

The global economy is undergoing a fundamental transition towards sustainability, driven by challenges such as climate change, the depletion of natural resources, and the growing demand for raw materials to support industrial and technological needs. In this context, the efficient use of mineral resources and the sustainable management of materials are of crucial importance. Achieving the Sustainable Development Goals (SDGs) is essential in guiding this transition to ensure that the extraction and use of resources support long-term environmental, economic, and social well-being [1] (Fig. 1). Established by the United Nations in 2015, the SDGs provide a shared blueprint for countries, organisations, and individuals to collaborate toward a sustainable and equitable future.

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Figure 1: Potential contributions of raw materials to the SDGs along the supply chain: the figure above presents a simplified supply chain of non-energy and non-agricultural raw materials, including four main stages. In addition to these, other stages may occur in the raw materials supply chain. For example, the exploration phase before extraction, primary material processing, product design, transportation, etc.

Legend: 1. No Poverty; 2. Zero Hunger; 3. Good Health and Well-being; 4. Quality Education; 5. Gender Equality; 6. Clean Water and Sanitation; 7. Affordable and Clean Energy; 8. Decent Work and Economic Growth; 9. Industry, Innovation, and Infrastructure; 10. Reduced Inequalities; 11. Sustainable Cities and Communities; 12. Responsible Consumption and Production; 13. Climate Action; 14. Life Below Water; 15. Life On Land; 16. Peace, Justice, and Strong Institutions; 17. Partnerships for the Goals. (Source: JRC).

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The climate objectives of the Paris Agreement and the European Union’s Green Deal—both targeting climate neutrality by 2050—further amplify this imperative. These agreements have fostered a significant increase in demand for Critical Raw Materials (CRMs), which are essential for clean energy technologies such as photovoltaic panels and battery storage systems. However, this surge in demand creates a dual challenge for the mining sector: it must simultaneously meet growing global requirements for CRMs while adhering to rigorous Environmental, Social, and Governance (ESG) criteria. Ensuring environmental protection and social equity in mineral extraction is critical to avoiding unintended consequences, such as ecological harm or community displacement [2].

To address these interconnected challenges, the CIRAN project (CrItical RAw materials extraction in enviroNmentally protected areas) was launched in January 2023. Funded by the European Commission for three years, the initiative seeks to develop and validate processes that harmonise CRM extraction with environmental preservation. Coordinated by the International Raw Materials Observatory (INTRAW), a Belgium-based non-profit organisation, CIRAN collaborates with European Geological Services and scientific institutions to advance sustainable practices in mineral resource management.

2. Extractive Sustainability and Economic Challenges

One of the core objectives is to develop processes that balance economic stability, a secure supply of CRMs, social well-being, and environmental conservation across the EU. The concept of efficient resource use plays a fundamental role in sustainability. While increased efficiency theoretically reduces resource consumption per unit of product, this may paradoxically accelerate the depletion of natural resources due to increased demand.

This phenomenon, known as the Jevons’ Paradox (Fig. 2), suggests that technological advancements in resource efficiency can lead to an overall increase in consumption instead of a reduction. If extraction and utilization technologies improve, raw materials become more available and affordable, thereby stimulating higher demand, as seen in sectors such as electric vehicle production, which has increased global lithium and cobalt consumption. This paradox, initially applied to coal in the context of the Industrial Revolution, has been expanded upon in modern studies, particularly in the sector of energy and raw materials. For example, in the ‘80s– ‘90s, through the Khazzoom-Brookes Postulate [3, 4] Jevons’ ideas have been extended to energy policy, asserting that improvements in energy efficiency often lead to greater energy consumption overall, as lower costs encourage increased demand. Empirical studies, such as those by Gillingham et al. [5] and Murray & King [6], have observed similar effects in other areas, including global oil production and digital automation, where efficiency gains have inadvertently driven higher consumption levels. In the context of raw materials, this modern interpretation of Jevons’ Paradox suggests that efforts to improve the efficiency of resource extraction or processing could lead to unintended consequences, such as higher demand for raw materials due to reduced costs or greater economic activity. This highlights the complex relationship between technological advancements, consumption patterns, and sustainability, emphasising the need for comprehensive policy approaches that consider the broader socio-economic and environmental impacts of increased efficiency.

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Figure 2: The Jevons Paradox argues that improving the efficiency of resource use can lead to an increase in the total consumption of that resource instead of a decrease, as the lower cost stimulates higher demand (Source: J. Bulrush).

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Dematerialisation offers a potential counterbalance to the Jevons’ Paradox by promoting economic models that achieve the same or better results with fewer materials. This approach relies on technological innovation to enhance performance, while reducing resource consumption and integrating circular economy principles that emphasise material reuse and recycling [7].

A shift toward a circular economy can reduce the need for new resource extraction through recycling, reuse, and sustainable design. However, market demand cannot be met solely through secondary raw materials. As a result, the sustainable extraction of CRMs and Strategic Raw Materials (SRMs) remains a challenge that must be addressed.

With increasing production and consumption, the marginal utility of the produced and consumed goods decreases; therefore, growth becomes ‘anti-economic’. It is thus incorrect to consider the economic system as isolated, independent of the surrounding biophysical environment, since the flow of material output necessarily requires material input flows [8].

When dealing with the exploitation of extractive resources, such as critical minerals, ethical dilemmas arise, particularly concerning environmental ethics. This field explores the epistemic foundations of decisions on resource exploitation, questioning how we determine what is right or wrong, and which sources of knowledge are valid. Sustainability should be the central principle, ensuring resources are used in ways that do not compromise the ability of future generations to meet their needs. This requires understanding ecological dynamics and the limitations of natural resources. Generations today have a moral duty to preserve the environment for the future, with scientific knowledge and long-term projections playing a critical role in policy formation. Companies and governments must be transparent and accountable for their extractive activities, adopting technologies to minimise environmental impact. Ethical decision-making is complicated by scientific uncertainty, political and economic interests, and varying cultural perspectives on environmental issues. Therefore, environmental ethics in resource exploitation demands a comprehensive approach that acknowledges the complexity of knowledge involved and leads to policies that are just, sustainable, and responsible.

3. CIRAN Project: Objectives, Implementation, and Italy’s Role in Advancing Sustainable Mining

The CIRAN project can be a tool for policymakers who must find the right balance between sustainable exploitation of resources and the needs of society and communities.

CIRAN focuses on developing policies that balance environmental protection with CRM supply needs in the EU. The project seeks to streamline authorisation processes, create modern social contract models, and engage experts in designing inclusive and sustainable policies aligned with the European Green Deal.

Within CIRAN, ISPRA leads the “Performance Appraisals” work package, which evaluates gaps between engineering design, technological capabilities, and environmental and social performance. The group assesses mining technologies over time, examines the long-term impacts of extractive activities in sensitive areas [9], and defines key criteria for CRM extraction in environmentally protected zones. These efforts aim to identify low-impact extraction options that can be implemented even in protected areas (Fig. 3).

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Figure 3: CIRAN is an European project aimed at promoting sustainable development through a new approach to the supply of CRMs (Critical Raw Materials) in protected areas, or in areas close to them, by creating innovative policies that allow for the responsible extraction of these resources, while preserving the delicate balance of the protected ecosystems in which they are found (Source: https://ciranproject.eu/).

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The CIRAN project is particularly relevant considering the high supply risks associated with CRMs. The EU remains vulnerable due to several factors, including the concentration of CRM deposits in a few global locations, the dominance of a limited number of supplier countries, and geopolitical instability affecting supply chains. The EU must therefore develop new domestic sources in a socially and environmentally responsible manner.

Framework agreements that incorporate public concerns regarding mining activities are essential. Transparent decision-making and inclusive governance models can facilitate public acceptance and reduce conflicts related to mining projects, particularly in environmentally sensitive regions.

4. Governance and Social Acceptability of Mining

Recent international tensions highlight the EU’s need to reduce its dependence on imported CRMs by developing new domestic sources in a socially and environmentally responsible manner. This requires framework agreements that consider public opinion on mining impacts. To prevent social conflicts, especially in environmentally restricted areas, mining decision-making processes must be inclusive and transparent, ensuring participation from stakeholders, citizens, and local communities. Combining geological knowledge with an inclusive decision-making process helps balance economic development and resource conservation, supporting the achievement of SDGs.

To minimise social conflicts and ensure responsible mining, the Social License to Operate (SLO) framework plays a crucial role. This concept emphasises the involvement of local communities in evaluating the risks and benefits of mining activities. Ensuring transparency in decision-making and fostering trust among stakeholders helps balance economic interests with social and environmental sustainability. The SLO ensures that mining companies take responsibility throughout the lifecycle of their activities, building trust and transparency with local communities and authorities and involving them from the planning stage. This approach aligns mining operations with sustainability goals and strengthens public trust [10].

To ensure that the use of mineral resources occurs sustainably, it is also necessary to adopt control tools that consider the value of natural capital. Natural capital assessment is an essential tool for sustainable mining governance. The Giasone Method [11], for example, provides a quantitative framework for evaluating georesources, integrating factors such as geography, hydrology, environment, sociology, nature, and economics. This multidisciplinary approach allows for a dynamic assessment of extraction projects, helping policymakers make informed decisions regarding sustainability and resource management (Fig. 4).

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Figure 4: GIASONE Method: Geography Industry Air SOciety Nature Economy. A method to assess sustainability of georesources cultivation [9].

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By integrating natural capital into economic decision-making, businesses and governments can recognise the true costs of mining, which are often not reflected in market prices. This approach helps reduce the long-term environmental footprint of extractive industries while ensuring responsible resource use.

Natural capital represents the economic value of natural resources and ecosystems, including minerals, water, air, and biodiversity. The assessment of natural capital allows for monitoring the impact of mining activities and incorporating the value of ecosystems into economic decision-making processes. Accounting for natural capital helps understand the real costs of extraction, which are often not reflected in market prices, and make informed decisions about the sustainability of extractive practices.

Moreover, environmental compensation can be a useful mechanism for balancing the damage caused by mining extraction. Compensation requires companies that harm the environment to invest in ecological restoration projects or conservation initiatives to mitigate the negative effects of their operations. Environmental compensation, if well-designed, can ensure that mining activities are conducted responsibly and that the impact on natural capital is minimised.

5. The Future of Mining in Europe: Economy, Environment, and the Ethical Principle of Coexistence in the European Green Deal

The EU faces considerable supply risks for certain mineral raw materials due to their limited geographic availability, concentration of extraction in a few countries, vulnerability to political instability, and fragmented regulatory frameworks. These challenges highlight the need for sustainable mining practices that ensure stable and diversified supply chains while addressing environmental and geopolitical concerns [12].

The European Green Deal has redefined the economic development model, placing sustainability and shared well-being at the heart of production strategies [13]. Mining, traditionally seen as a predatory activity with high environmental impact, must now align with new principles of economic, social, and ecological sustainability.

According to this approach, the economic value of extracted resources is not limited to the extraction phase but must translate into lasting benefits for local communities and the environment. The key concept is distributed value: the mining industry, rather than outsourcing raw material processing, must develop local supply chains, creating job opportunities, technology transfer, and economic growth in the resource-producing regions. This goal can be achieved with low-impact industrial processes and ecological compensation systems, contributing to the restoration of ecosystems disrupted by mining activities [14].

From an ethical standpoint, sustainability is no longer viewed merely as protecting the environment, but as a strategy for coexistence between humans and nature. The environment is increasingly regarded as an entity with its own rights, a subject with which productive activities must establish a balanced relationship, avoiding irreversible alterations to biodiversity [15].

From this perspective, the Nature Restoration Law [16] comes into play, which mandates concrete actions for the restoration of degraded ecosystems. For years, extractive industries have been working to develop low-impact land-use strategies, specifically to compensate for and regenerate altered habitats through reforestation, water resource conservation, and soil fertility recovery strategies [17]. The concept of environmental restoration involves not only reducing impacts but also creating ecological value by integrating industrial activities with biodiversity conservation programs, especially in areas with a long tradition of mining, where previous mining activities had not been executed with sufficient environmental ethics.

From the perspective outlined by the Green Deal, mining activities must transform into an integrated system within the territory that generates lasting value, benefiting the entire community. Traditionally, extracted materials were transported to distant processing plants, generating high energy costs and environmental impacts related to logistics [18]. Today, however, the strategy involves integrating processing stages directly at extraction sites or nearby areas.

The benefits of this transition are manifold. They aim to reduce CO₂ emissions through reduced long-distance transportation [19], boost local employment in the affected communities [20], increase industrial efficiency through the adoption of advanced technologies for on-site processing, and minimise production waste, with the possibility of reusing residual materials within circular economy processes.

The integration of the extraction supply chain into the local context must occur in compliance with stringent environmental and social safety criteria. Emerging technologies, such as low-impact extraction processes, sustainable water management, and the use of renewable energy, are fundamental tools for harmonising production and environmental conservation.

Furthermore, approaches based on life cycle analysis (LCA) and environmental impact assessments (EIA) allow for the measurement and minimisation of the ecological footprint of mining activities [21]. The adoption of international standards and the involvement of local communities in decision-making processes are key factors in ensuring that industrial development does not come at the expense of ecosystems and local populations.

The mining industry of the future can no longer be conceived as a one-way system of resource exploitation. The emerging model, outlined by the Green Deal and the Nature Restoration Law [16], requires a profound rethinking of the sector, based on sustainable production, territorial valorisation, and environmental conservation.

The integration of supply chains in extraction sites, biodiversity protection, and the adoption of regenerative mining practices represent the key to reconciling economic development and ecosystem protection. The challenge is to transform the extraction process from a linear one to a circular system, where the value generated does not end with extraction, but translates into growth opportunities for both communities and the environment [21].

6. Conclusions

Sustainable management of mineral resources demands an integrated approach that balances efficient resource use, reduced environmental impact, and social responsibility. This involves implementing tools such as local strategic plans, natural capital evaluation, and addressing social factors like community benefits and securing the SLO. Effective management can enhance resource efficiency, minimise ecological harm, and improve quality of life.

Adopting sustainable mining practices aligns with the EU Green Deal and the CRM Act, which prioritise safe and sustainable sourcing of raw materials. Key initiatives include reducing emissions, decarbonisation, and advancing circular economy principles to achieve climate neutrality by 2050 (Fig. 5). The CIRAN project exemplifies this shift, promoting an innovative model that integrates resource extraction with environmental sustainability and circular economy goals. In a global context increasingly focused on ecological transition, the mining sector must adapt to meet the challenges posed by EU policies and regulations, ensuring its role in supporting both environmental and economic objectives.

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Figure 5: Circulation economics [22].

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Social acceptance remains central to this transition. Local communities must be actively engaged through dialogue to ensure mining activities are perceived as economically viable, environmentally responsible, and socially beneficial. The success of projects like CIRAN demonstrates that innovation, sustainability, and social acceptance can coexist, positioning the extractive sector as a key driver of ecological transition and strategic raw material security.

ISPRA’s efforts emphasise developing new governance frameworks for sustainable mining, including community co-creation and tools like Giasone to assess natural capital. These initiatives ensure that mining near protected areas account for socio-economic and environmental impacts, advancing progress toward the Sustainable Development Goals (SDGs). While the 2030 Agenda lacks a specific raw materials goal, their role in achieving all SDGs underscores the need to raise awareness of their contributions to sustainable development.

To address global challenges, the mining industry must embrace advanced technologies, foster collaboration across geosciences, social sciences, and public engagement, and prioritise ecosystem service awareness and nature conservation. Only through an integrated approach—one that harmonises resource demand with environmental and social stewardship—can the sector evolve into a cleaner, more responsible driver of progress, ensuring the security of critical materials while upholding planetary and societal well-being.

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This article has been published in European Geologist Journal 59 – UN Sustainable Development Goals – where the geology lies