Fair Finance Asia calls for equitable governance in ASEAN critical mineral trade

A new report titled ‘Extraction to Equity’ by Fair Finance Asia (FFA) and Profundo highlights that ASEAN member states are often excluded from the global value chains built upon their own critical minerals. The study focuses on mineral transactions in Cambodia, Indonesia, the Philippines, and Thailand, examining whether these deals uphold Environmental, Social, and Governance (ESG) standards.

Findings indicate that existing cooperation agreements and memorandums of understanding frequently lack provisions for local benefits, sustainable development standards, and fair value distribution mechanisms. This often results in mineral-producing nations exporting only raw materials while high-value processing occurs abroad. The report also questions whether the demand for these minerals is being driven more by the defense sector than the renewable energy industry.

FFA and its partners are calling on ASEAN governments and financial regulators to move away from extractive-only development models. They advocate for mandatory safeguards, including human rights due diligence, community consent, and transparent benefit-sharing, to ensure that local communities and ecosystems do not bear the costs of the energy transition without receiving equitable returns.