What's going on?

One of Europe�s biggest asset managers warned on Tuesday that more investment in mining is needed to meet the Paris Agreement�s climate goals.

What does this mean?

Miners have fallen out of favor with investors in the last few years, mostly because the carbon-intensive practice doesn�t suit the trend toward renewable investments. But here�s the acute irony: industrial metals like copper and nickel are more important than ever to eco-friendly technologies, from electric vehicle batteries to wind farms.

Legal & General Investment Management, then, is predicting that miners will need to produce twice as much copper and four times as much nickel over the next 30 years. If they don�t, the world will struggle to keep global warming within 1.5 degrees celsius above pre-industrial levels. And right now, it thinks those production targets aren�t feasible. In fact, consultant Wood Mackenzie thinks the mining industry needs $2 trillion worth of investment to stand any chance of meeting those ambitious goals.

Why should I care?

For you personally: Choose carefully.
If you�re going to play your part, keep in mind that some miners are greener than others: coal-powered nickel producers in Indonesia generate far more emissions than hydropower ones in Canada, for instance. That�s why Legal & General thinks you should back those with the lowest possible carbon footprints to help bring down emissions across the entire mining industry.

The bigger picture: The UN kills the vibe.
That wasn�t the only cause for concern this week: the UN also warned that the energy transition is �backsliding� as countries scramble to find alternatives to Russian gas. And since most haven�t built up a robust enough renewable infrastructure yet, those alternatives ain�t pretty: the amount of funds raised for coal projects last quarter were twice as high as they were the same time last year. The UN isn�t hopeful: it now thinks the world�s on track to warm by more than 3 degrees.