MALMO, Sweden, Oct 23 (IPS) – Even amid the regressive resistance of the current US governmentthe world is shifting to one green energy future. With governments promising to phase out fossil fuels, companies touting electric vehicles and financiers investing billions in solar, wind and batteries, it appears the necessary transition from fossil fuels to clean energy is finally gaining momentum.
But beneath the celebratory headlines lies a darker, uncomfortable truth: the race to win “transition minerals” widely used in today’s clean energy technology – is unleashing a new wave of destruction.
And unless we change course, this mining boom will bring us closer to collapse as it entrenches poverty, inequality, exploitation, violence and destruction. It is a fallacy to expect the same “extraction at any cost” model that created the planetary crisis we face today.
In a new report from the Forests & Finance CoalitionAnalysts found that banks and investors reward bad behavior by financing some of the worst polluters and human rights abuses in existence.
More than half of the $493 billion in loans and underwriting made between 2016 and 2024, and more than 80% of the $289 billion in bonds and equities, went to just ten mining companies in transition. Among the winners are Glencore, Vale and Rio Tinto.
Proponents claim that transition minerals are indispensable for renewable energy. But the focus on crude extraction rather than reducing demand, recycling or reuse has led to a rapid expansion of new mines. Too often, the narrative of “green” or “clean” energy obscures the true costs and justifies an extractive model that reflects the worst parts of the fossil fuel age.
The damage associated with mining is extreme. In Brazil, Vale has caused two catastrophic dam collapses killing hundreds of people and destroying the environment by releasing toxic waste. Undeterred, banks increased their funding since Vale’s second dam collapsed in 2019.
In Indonesia, Harita group’s nickel complex is powered by coal, increasing emissions and harming public health. local communities Obi Island have been poisoned due to cancer-causing waste entering the island’s drinking water.
Recent investigations reveal that Harita executives knew about this contamination and hid it for over a decade while financiers supported its expansion and successful 2023 IPO.
These are not isolated scandals, but symptoms of a system in which companies are not accountable and in which financiers choose profit over life time and time again. Think about this: almost 70 percent of the mines are transition minerals overlap on indigenous or community lands and more than 70 percent are in high biodiversity regions already experiencing climate stress.
Meanwhile, rich countries are demanding more minerals to produce electric vehicles for affluent markets 600 million people in Africa and 150 million people in Asia still lack basic access to electricity.
This is not the blueprint for a just energy transition. It’s a new frontier in extraction: Teslas are powered by the rich, while exploited workers, poisoned rivers and displaced communities are left behind. Urgent reforms are needed to ensure that the energy transition addresses the climate crisis, rather than greenlighting destructive practices.
There needs to be a transformation in the way minerals are extracted, financed and governed. Banks and investors must respect human rights by making demands Free, prior and informed consent (FPIC) for indigenous peoples, protecting defenders and ensuring recovery for disadvantaged communities.
They must protect nature through enforceable safeguards against deforestation, strict controls on toxic waste and a ban on risky practices such as deep-sea mining. They must strengthen accountability by disclosing financing, enforcing ESG policies within business groups and ensuring complaints mechanisms are fit for purpose.
And they must align financing with climate goals by ending reliance on coal-fired smelters, phasing out harmful practices and demanding credible transition plans from mining companies.
Governments must also introduce stricter regulations to equitably reduce demand for minerals, prevent overconsumption in rich countries, and prioritize access to renewable energy for the billions still excluded. International frameworks – such as the UN’s emerging Principles on Critical Minerals – need to be strengthened and enforced.
We can still choose a just energy transition – a transition based on fair access to clean energy and respect for people and ecosystems. A just transition requires equitable financing: capital that flows toward equality, responsibility, and sustainability, not deeper extraction and harm.
Such a transition would not only reduce emissions, but also break with the exploitative model that has caused the current crisis.
If banks and investors refuse to change course, they will be remembered as champions of the next great wave of environmental destruction and human rights abuses. The choice is stark: a clean energy revolution that brings justice, or a revolution that repeats the mistakes that brought us to the brink? Now it’s time to decide.
Stephanie Dowlen is a Forest Campaigner at Rainforest Action Network, which is part of the Forests & Finance Coalition
IPS UN Office
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