Fair Finance Asia calls for stronger governance and equitable benefit-sharing in critical mineral trade within ASEAN
A new report by Fair Finance Asia (FFA) and its research partner, Profundo, highlights the lack of local benefits and sustainability standards in critical mineral value chains across several Southeast Asian countries. The report, titled 'Extraction to Equity,' examines how agreements involving Cambodia, Indonesia, the Philippines, and Thailand often fail to include clauses on environmental, social, and governance (ESG) norms or equitable profit-sharing. The analysis reveals that these nations frequently export raw minerals while processing occurs elsewhere, limiting local economic gains. The report also questions whether demand for critical minerals is driven more by defense sectors than renewable energy initiatives. It urges ASEAN member states to adopt the United Nations Principles on Equitable and Just Transition in Critical Minerals and promote alternatives to extractive practices. Experts from FFA, Oxfam, Profundo, and other organizations emphasize the need for enforceable commitments regarding local value creation, fair pricing, community consent, transparency, human rights compliance, and decarbonization. They stress that without such measures, communities affected by mining will remain vulnerable to exploitation.
Topics: ASEAN trade agreements critical minerals ESG standards sustainable finance