A report released in early September 2025 by the Forests & Finance coalition has drawn sharp attention to the environmental and human rights risks embedded in the global rush for transition of minerals. According to the study, nearly US $493 billion in financing and US $289 billion in investment holdings flowed into mining projects between 2016 and 2024, fueling the extraction of materials critical for renewable energy technologies and electric vehicles. Yet, the coalition warns that this surge of capital has not been accompanied by robust safeguards: the majority of financiers continue to operate with weak environmental, social, and governance (ESG) frameworks.
The data paints a troubling picture of where and how this mining is taking place. Nearly 70% of financed mines are located on Indigenous or peasant lands, while 71% lie within biodiversity hotspots, amplifying risks of cultural displacement, ecosystem destruction, and resource conflict. Documented impacts include widespread deforestation in the Amazon, toxic pollution in African river systems, exploitative labor conditions, and catastrophic dam failures. Far from aligning with global climate goals, many of these projects are compounding social vulnerabilities and degrading critical natural environments, raising questions about whether the energy transition is being pursued at too high a cost.
The report calls for urgent reforms in financial governance to ensure that transition mineral mining does not perpetuate old patterns of exploitation under a new green banner. Stronger due diligence, mandatory disclosure, and binding safeguards for Indigenous rights and ecological integrity are among the key recommendations. Without such measures, the billions of dollars flowing into critical minerals risk exacerbating inequality and ecological collapse, rather than delivering on promises of sustainable development. The findings underline a central paradox of the energy transition: while minerals are essential to decarbonization, the way they are financed and extracted will ultimately determine whether the transition is just and sustainable.