Report Calls for Fairer Governance in ASEAN's Critical Minerals Trade

Fair Finance Asia is advocating for stronger, more equitable governance and benefit sharing in the trade and financing of critical minerals across Southeast Asia.

Phnom Penh, Cambodia – A new report released by the Fair Finance Asia (FFA) network and its research partner Profundo indicates that member states of the Association of Southeast Asian Nations (ASEAN) are systematically excluded from the value chains of their own critical minerals. The report, titled Extraction to Equity, is among the first to analyze the region's critical minerals trade agreements and the financing underpinning them.

The study, which draws on publicly available information up to December 2025, examined agreements involving Cambodia, Indonesia, the Philippines, and Thailand to assess whether they promote environmental, social, and governance (ESG) standards. The report found a consistent absence of clauses promoting local benefits, sustainability norms, and equitable value distribution in these agreements and Memoranda of Understanding (MoUs). This results in countries exporting raw minerals while processing occurs elsewhere.

FFA and Profundo are issuing recommendations to ASEAN member states and financial regulators. These recommendations urge the incentivization of alternatives to extractive industries and support for UN principles aimed at guiding the critical minerals for the energy transition towards equity and justice. The report also questions the extent to which demand for critical minerals is truly linked to renewable energy and which needs are being prioritized.

The report's authors emphasize that critical minerals agreements must extend beyond market access and include enforceable safeguards such as local value addition, fair pricing, and civil society participation. They also highlight the necessity for banks and investors to impose financing conditions that incorporate human rights due diligence, community consent, and transparent benefit sharing.