Does the potential for corruption in the mining sector threaten a just energy transition?

The document highlights how the surge in demand for minerals for the energy transition—such as those for electric cars and offshore wind farms—increases the risk of corruption, particularly in the awarding of mining licenses. It warns that corruption undermines the 'social license to operate' for businesses and increases the likelihood of environmental and social harm, especially since many projects overlap with conservation areas or Indigenous territories. The author calls for strengthened governance, transparency, and the implementation of standards like the EITI Standard to ensure a responsible transition.

• Low-carbon technologies significantly increase the demand for minerals, making the mining sector more vulnerable to corruption, especially regarding the issuance of new mining licenses.
• The scale of mineral requirements for green technology is substantially higher than for conventional technology; for instance, electric cars need six times the mineral inputs of conventional cars, and offshore wind farms require thirteen times more minerals than gas-fired plants of a similar size.
• Corruption in mining licensing poses a high risk to Indigenous peoples and conservation areas, as approximately 80% of transition minerals projects in EITI Standard countries are on territories of land-connected or Indigenous peoples, and about 50% overlap with conservation areas.
• Corruption is detrimental to businesses because it damages the investment climate, increases costs, and threatens the 'social license to operate,' while downstream manufacturers of electric vehicles, wind turbines, and solar panels face increased risks of supply disruptions.
• To ensure a just transition, stakeholders must move beyond 'business as usual' by implementing measures to mitigate corruption risks, strengthening social and environmental safeguards, and promoting transparency in company ownership, commodity trades, tax payments, and contracts.

APA

Clark, H. (2023). Does the potential for corruption in the mining sector threaten a just energy transition? World Economic Forum. https://www.weforum.org/stories/energy-transition/corruption-in-the-mining-sector-threatens-a-just-energy-transition/

Chicago

Clark, Helen. Does the potential for corruption in the mining sector threaten a just energy transition? World Economic Forum, 2023. https://www.weforum.org/stories/energy-transition/corruption-in-the-mining-sector-threatens-a-just-energy-transition/.

Wikipedia

{{cite press release |last1=Clark |first1=Helen |title=Does the potential for corruption in the mining sector threaten a just energy transition? |publisher=World Economic Forum |date=20 April 2023 |url=https://www.weforum.org/stories/energy-transition/corruption-in-the-mining-sector-threatens-a-just-energy-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clark2023does, author = {Clark, Helen}, title = {{Does the potential for corruption in the mining sector threaten a just energy transition?}}, publisher = {World Economic Forum}, year = {2023}, month = apr, url = {https://www.weforum.org/stories/energy-transition/corruption-in-the-mining-sector-threatens-a-just-energy-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }