An international advocacy group has found that many transition mineral projects backed by development banks carry notable environmental, social, and human rights risks, particularly affecting communities in the Global South.
- Over half the transition mineral projects show probable harm to communities.
- Three-quarters of African projects involve cobalt, copper, and nickel extraction.
- U.S. development banks increasingly finance projects amid global competition.
What happened
The International Accountability Project (IAP) conducted a detailed analysis of 77 transition mineral projects globally that were approved between 2023 and 2025. These projects, financed or supported by development banks, are linked to the extraction of minerals essential for renewable technologies, such as cobalt, copper, and nickel. The findings, compiled in the Transition Minerals Finance Tracker, reveal that a majority of these projects carry significant environmental, social, and human rights risks.
In particular, the analysis highlighted that nearly 75% of projects in Africa are associated with actual or potential harm to local communities. These impacts include water contamination, deforestation, forced displacement, and repression of environmental defenders. The report raises concerns about due diligence practices of development banks, noting that some fund multinational mining corporations with controversial human rights records without sufficient safeguards.
Why it feels good
This report sheds light on the gap between the promise of a clean energy transition and the realities on the ground. It encourages accountability and urges development banks to strengthen their evaluation processes and require thorough social and environmental impact assessments before funding projects. The increased scrutiny can help ensure that the green transition does not come at the cost of vulnerable communities.
By highlighting the complexities of global mineral supply chains, the report fosters broader conversations about ethical sourcing and sustainable development. It also draws attention to the need for equitable benefits sharing, so countries providing raw materials do not bear disproportionate environmental or social costs. Ultimately, these findings can empower stakeholders to advocate for fairer and more responsible mining practices.
What to enjoy or watch next
Readers interested in this topic may want to explore the interactive Transition Minerals Finance Tracker launched by the IAP, which offers detailed insight into projects worldwide. Following developments from major development banks such as the U.S. International Development Finance Corporation and the International Finance Corporation can also be informative as they adjust financing strategies in response to these concerns.
Watching ongoing efforts to integrate stronger safeguards, social impact studies, and mitigation strategies into transition mineral investments will be key. Additionally, tracking how countries in the Global South negotiate the balance between development, environmental protection, and human rights will illustrate the evolving challenges and opportunities in the global clean energy shift.