Paradox of energy transition: Who really pays for a greener future

A report by the UN University Institute for Water, Environment and Health (UNU-INWEH) has found that the global clean energy transition is imposing dispropor...

What Happened

A report by the UN University Institute for Water, Environment and Health (UNU-INWEH) has found that the global clean energy transition is imposing disproportionate environmental, health, and social costs on vulnerable communities in the Global South.
Mining of critical minerals — lithium, cobalt, nickel, graphite, and rare earth elements — essential for EVs, renewable energy, and AI infrastructure, is draining water resources, generating toxic waste, and causing serious health impacts in mining-dependent regions.
In Chile's Atacama Desert, lithium mining accounts for up to 65% of regional water usage; in the Democratic Republic of Congo (DRC), 72% of people near mining sites reported skin diseases and approximately 30% of mining sites employ child labour.
Global rare earth production in 2024 generated 707 million tonnes of toxic waste — equivalent to filling 59 million garbage trucks.
The report calls for mandatory international due diligence standards, legally binding ethical sourcing mechanisms, and community co-governance frameworks to ensure a just transition.

Static Topic Bridges

Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC)

CBDR-RC is a foundational principle of international environmental law, enshrined in the 1992 UNFCCC and reaffirmed in the Paris Agreement (2015). It acknowledges that while all countries share responsibility for addressing climate change, their historical contributions and current capacities differ. The principle underpins arguments that developed nations — which benefit most from the clean energy transition — bear a greater obligation to finance its costs and ensure fair supply chains.

Principle embedded in UNFCCC (1992), Rio Declaration (Principle 7), and Paris Agreement (2015)
Operationalised through Nationally Determined Contributions (NDCs) under Article 4 of the Paris Agreement
Developing nations argue CBDR-RC must extend to the mineral supply chains powering the energy transition

Connection to this news: The UNU-INWEH report highlights how the burdens of the energy transition (water depletion, toxic waste, health damage) fall on Global South nations supplying critical minerals, while benefits — cheaper EVs and clean energy — accrue predominantly to developed economies, directly challenging the spirit of CBDR-RC.

India's Critical Minerals Framework

India identified 30 critical minerals in 2023 under the Ministry of Mines, based on economic importance and supply concentration risk. In January 2025, the National Critical Minerals Mission (NCMM) was launched for a 7-year period (2024-25 to 2030-31) with a budgetary outlay of ₹16,300 crore plus ₹18,000 crore from PSUs and stakeholders. The mission covers the full value chain: exploration, mining, processing, recycling, and R&D.

India's 30 critical minerals list (2023): lithium, cobalt, graphite, nickel, REEs, titanium among others
NCMM launched January 2025; 7-year horizon; ₹16,300 crore central outlay
Ministry of Mines is the nodal ministry; Geological Survey of India plays a key exploration role
Mines and Minerals (Development and Regulation) Amendment Act 2023 unlocked deep-sea and atomic mineral blocks

Connection to this news: India, as a net importer of most critical minerals, has a strategic interest in both securing supply chains and ensuring they are ethically governed — making the UNU-INWEH findings directly relevant to India's NCMM objectives.

Just Transition and Energy Justice

The concept of "just transition" refers to ensuring that the shift towards clean energy does not disproportionately harm workers, communities, or nations dependent on fossil fuel industries or mineral extraction. Energy justice adds a rights-based dimension — access to affordable, reliable energy is a human right (SDG 7). The Global South vs North divide in clean energy transition costs is a central tension in multilateral climate negotiations.

Just transition referenced in the Paris Agreement preamble and COP26 Glasgow Climate Pact (2021)
ILO Guidelines on Just Transition (2015) provide a policy framework
SDGs referenced: SDG 1 (no poverty), SDG 3 (good health), SDG 6 (clean water), SDG 7 (clean energy), SDG 10 (reduced inequalities)

Connection to this news: The report's findings — that mining communities in the Global South bear health, environmental, and social costs while rich nations capture the economic benefits of the clean energy transition — crystallise the just transition debate in concrete, measurable terms.

Environmental Impact Assessment (EIA) and Tribal Rights in Mining

In India, the EIA Notification 2006 under the Environment Protection Act 1986 mandates environmental clearance for mining projects. The Forest Rights Act (FRA) 2006 grants tribal communities rights over forest land, and the Panchayats (Extension to Scheduled Areas) Act (PESA) 1996 requires gram sabha consent for land acquisition in tribal areas. These frameworks are directly relevant to critical mineral mining in India's tribal-rich mineral belt (Jharkhand, Odisha, Chhattisgarh).

EIA Notification 2006: mandatory for Category A and B mining projects
FRA 2006: community forest rights; Section 3(1) grants individual and community rights
PESA 1996: extends Panchayati Raj to Fifth Schedule areas; gram sabha consent required
Fifth Schedule of the Constitution: protects tribal areas in 10 states

Connection to this news: The DRC experience of child labour, water depletion, and health damage near mining sites is a cautionary parallel for India's own critical mineral extraction plans, underscoring the need to enforce EIA, FRA, and PESA protections rigorously.

Key Facts & Data

Lithium demand projected to increase 9-fold by 2040; cobalt and nickel demand to double
By 2050, demand for lithium, graphite, and cobalt could rise by up to 500%
2024 global lithium production consumed ~456 billion litres of water — equivalent to annual drinking needs of 62 million sub-Saharan Africans
Chile's Atacama Desert: lithium mining uses up to 65% of regional water
16% of global critical mineral reserves are located in high water-stress regions
DRC: ~30% of mining sites employ children; 56% of women near sites reported gynaecological problems
2024 rare earth production: 707 million tonnes of toxic waste generated
India's National Critical Minerals Mission (NCMM): ₹16,300 crore outlay, 2024-25 to 2030-31
India's 2023 Critical Minerals List: 30 minerals identified by Ministry of Mines
Paris Agreement Article 2: limit global temperature rise to 1.5°C above pre-industrial levels