Fair Finance Asia Report Highlights Lack of Equitable Governance in ASEAN Critical Minerals Trade
A new report by the Fair Finance Asia (FFA) network and research partner Profundo highlights significant gaps in equitable governance, sustainability standards, and local benefit-sharing within critical minerals trade agreements across Cambodia, Indonesia, the Philippines, and Thailand. The report finds that these countries often export raw materials without retaining value through processing or ensuring environmental and social safeguards. The study calls for stronger regulatory frameworks to promote responsible finance and trade practices in Asia's mineral supply chains. It urges ASEAN governments and financial regulators to prioritize community rights, transparent benefit-sharing, and enforceable sustainability standards over extractive models that favor external interests. The report also questions whether the demand for critical minerals is being driven more by defense sectors than renewable energy initiatives. FFA emphasizes the need for mandatory safeguards rather than voluntary commitments from companies and banks involved in mineral extraction and processing to ensure equitable development, environmental protection, and respect for local communities.
Topics: ASEAN critical minerals ESG standards sustainability trade agreements