{"id":60076763,"date":"2025-04-15T16:30:05","date_gmt":"2025-04-15T15:30:05","guid":{"rendered":"https:\/\/dialogue.earth\/?post_type=opinion&p=60076763"},"modified":"2025-04-15T16:30:17","modified_gmt":"2025-04-15T15:30:17","slug":"can-latin-america-avoid-green-extractivism","status":"publish","type":"opinion","link":"https:\/\/dialogue.earth\/en\/justice\/can-latin-america-avoid-green-extractivism\/","title":{"rendered":"Can Latin America avoid \u2018green extractivism\u2019?"},"content":{"rendered":"\n

In the context of what the UN has described<\/a> as the \u201ctriple planetary crisis\u201d \u2013 of climate change, biodiversity loss, and pollution \u2013 commitments by countries to accelerate their transitions away from fossil fuels have increased. This has heightened demand for critical minerals such as lithium, copper, cobalt and nickel, which are essential for clean energy technologies like electric vehicle batteries, wind turbines and solar panels.<\/p>\n\n\n\n

With these international commitments, such as the Paris Agreement<\/a>, or tripling renewable energy capacity<\/a> by 2030, the extraction of critical minerals becomes increasingly relevant. But is it possible to prevent the negative patterns that have often been associated with these industries, such as environmental degradation, displacement of communities or human rights harms? As investors increasingly look to the Global South as a fundamental source of these critical minerals, what measures would avoid replicating these problems?<\/p>\n\n\n\n

For regions such as Latin America \u2013 a strategically important territory as the home to some of the world\u2019s largest reserves<\/a> of lithium, copper, cobalt and nickel \u2013 can a new era of \u201cgreen extractivism\u201d be avoided?<\/p>\n\n\n\n

The phrase green extractivism<\/a> has been used by activists and academics to describe and denounce what is seen as a new mode of capitalist exploitation. Natural resources, renewable energy and labour, particularly in countries of the Global South, are \u201cextracted\u201d for the benefit of companies, consumption and markets in richer areas, primarily in the Global North.<\/p>\n\n\n\n

The concept builds on the term extractivismo<\/em>, which emerged from Latin America in the late 20th century and has been popularised in the decades since. It describes centuries of resource extraction in the region, often at the expense of its environments, people and development, and with exported materials often adding little value to local economies. It is these trends that critics hope to see avoided in a new, purportedly greener era.<\/p>\n\n\n\n

Given the significance of Latin America\u2019s mineral resources, this sector has duly been the main recipient of foreign direct investment over the past two years. Minerals attracted 23%<\/a> of the value of projects, according to the UN Trade and Development Conference, the UN body promoting the interests of developing countries in world trade.<\/p>\n\n\n\n

According to the International Energy Agency\u2019s Global Critical Minerals Outlook 2024<\/a>, in the coming years Latin America is expected to account for the majority of the critical minerals market\u2019s value, in terms of mining output. That value is projected to reach USD 120 billion by 2030. It seems assured that investments in critical mining in the region will continue to increase. The processing of these minerals is likely to remain beyond the region, however, with 50% of refining projected to happen in China.<\/p>\n\n\n\n

For Latin American countries, the extraction of these minerals holds a promise of economic growth, but with risks. For example, the weak implementation of regulations and the reproduction of extractive patterns that limit technological development, quality jobs and opportunities to reduce inequalities.<\/p>\n\n\n\n

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The Requena Hybrid Solar Power Plant, in Peru\u2019s Loreto region, which features 8 megawatts of installed capacity, plus 10 megawatt-hours of lithium battery storage. The global expansion of solar and battery technologies are among the factors linked to increased demand for minerals such as lithium (Image: Presidencia Per\u00fa<\/a>, CC BY NC SA<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

A history of problematic extraction<\/h2>\n\n\n\n

In Latin America and beyond, extractive industries have had a long historical association with human rights violations and serious environmental impacts. Community displacement, inadequate consultation, and socio-environmental conflict are common in the region. At the time of writing, the Observatory of Mining Conflicts in Latin America (OCMAL) documented 284 such conflicts<\/a>; Mexico, Peru and Chile were the most affected.<\/p>\n\n\n\n

Environmental impacts linked to mining activities include various types of pollution: chemical contamination, air, noise and light pollution, soil instability and often irremediable change to landscapes. The industry\u2019s high demand for water has also often put a strain on both local environments and relations with adjacent communities. Disasters such as the Sonora River spill<\/a> in Mexico in 2014, and tailings dam failures in Brazil at Mariana<\/a> in 2015 and Brumadinho<\/a> in 2019, are just some of the more high-profile incidents. <\/p>\n\n\n\n

A lack of transparency and cases of corruption have also been highlighted<\/a> as major challenges for extractive projects, including concerns around Chinese investments<\/a> in the region. Civil society has been documenting negative impacts for the environment, Indigenous rights, labour rights, and freedom of association.<\/p>\n\n\n\n

Panels, principles and due diligence<\/h2>\n\n\n\n

Given this context, what actions could be implemented to ensure the same historical patterns in mineral extraction are not repeated?<\/p>\n\n\n\n

In April 2024, the secretary general of the UN, Ant\u00f3nio Guterres, established<\/a> the Panel on Critical Energy Transition Minerals. It is aimed at ensuring a fair and sustainable transition that benefits all countries and communities that possess these minerals.<\/p>\n\n\n\n

As a first step, this panel of governments, international organisations, companies and civil society representatives proposed seven voluntary principles.<\/p>\n\n\n\n

Proposed UN Guiding Principles on critical energy transition minerals<\/span>
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