Mongabay · Natuur

Development Banks Funding Risky Mineral Projects, Report Claims

A report by the International Accountability Project (IAP) reveals that development bank-backed projects for minerals crucial to the green transition are frequently linked to significant environmental, social, and human rights risks.

The IAP analyzed 77 projects globally approved between 2023 and 2025, creating the Transition Minerals Finance Tracker. The findings indicate that over half of these projects, and nearly 75% of those in Africa, show evidence of actual, probable, or potential harm to local communities.

Vaishnavi Varadarajan of IAP noted that multinational mining corporations with poor human rights records often receive loans from development banks, raising questions about the banks' due diligence. The report highlights how the push for renewable energy and electric vehicles, driven by the Paris Agreement, relies on minerals often sourced from the Global South, potentially reinforcing colonial extraction patterns.

The IAP criticizes this as an unfair transition where financing countries benefit economically, while resource-rich nations face issues like water depletion, forced displacement, deforestation, and human rights violations. Elias Jika of IAP stated that while some projects are framed as poverty-ending initiatives, the primary motivation for many development banks appears to be profit.

IAP is advocating for stronger safeguards, mandatory social impact studies, and mitigation measures for these projects. In Sub-Saharan Africa, three-quarters of financed projects focus on extracting cobalt, copper, and nickel for renewable energy. The U.S. International Development Finance Corporation (DFC) supports approximately 44% of these projects in the region, as the U.S. seeks to compete with China's dominance in the transition minerals market.

AI-samenvatting op basis van de bron.