Headline: Financial System, and Energy and Resource Husbandry

This chapter explores aspects of the relationship between the financial system and resource industries, starting with general criteria for sound investment and an overview of the various materials and resources that need to be distinguished. To this end, the focus is first placed on fossil energy commodities that do not lend themselves to management in a circular economy, before the metals and mining sector and its regulation are presented. The global transformation of energy systems presents an opportunity to phase out a non-circular industry and replace it with one that is characterised less by commodities for consumption and more by commodities for the manufacture of energy conversion equipment and durable investment goods. Combining the energy and mineral resource industries, the impact of the decline of fossil energy industries is discussed, including the implications for international trade, economic activity, public finance and the financial sector. The chapter concludes with the general argument that the financial system is affected by changes in the resource industries and their shift to a circular economy, and that it can facilitate that shift if the political, legal and regulatory framework is right. Finally, a suite of criteria for investment in support of resource sector transformation and the circular economy is proposed.