Fair Finance Asia Calls for Equitable Governance and Profit Sharing in Critical Minerals Trade Across ASEAN
A new report by Fair Finance Asia (FFA) and its research partner Profundo highlights the exclusion of ASEAN member states from value chains involving critical minerals. The analysis, titled 'Extraction to Equity,' reveals that public agreements often lack clauses on local benefits, sustainability standards, or fair profit distribution, leading countries in the region to export raw materials while processing occurs elsewhere. The report questions whether trade deals with Cambodia, Indonesia, the Philippines, and Thailand promote environmental, social, and governance (ESG) standards. It also raises concerns that demand for critical minerals may be driven more by defense sectors than renewable energy initiatives. FFA calls on ASEAN governments and financial regulators to incentivize alternatives to raw material extraction and support UN principles promoting justice in mineral use. Experts from Oxfam, The PRAKARSA, Japan Center for Sustainable Environment and Society, and other organizations emphasize the need for enforceable protections such as local value creation, fair pricing, community consent (FPIC), transparency of revenues, and stronger ESG standards among financial institutions.
Topics: ASEAN trade agreements critical minerals ESG standards sustainability