Liputan6.com, Jakarta – Transparency and accountability are essential in implementing the energy transition. Several countries worldwide, including in ASEAN, are pushing for an energy transition to handle climate change.
Publish What You Pay (PWYP) Indonesia researcher Mouna Wasef explained that several ASEAN countries, such as Indonesia and the Philippines, will face challenges in mineral transition governance in developing renewable energy.
It is no secret that renewable energy requires a high supply of critical minerals such as nickel, lithium, cobalt, and manganese.
“It is estimated that in the next two decades, the increase in demand for minerals forming clean technology components such as nickel and cobalt will increase by 60-70%, then lithium by 90%, and copper and rare earth by 40%,” he said as written Sunday (3/9/2023).
The extractive industry has a long history of corruption and poor governance. Eradicating corruption along the supply chain is necessary to realize a just energy transition. According to the OECD, the extractive industry is among the highest-risk business fields, accounting for one in every five transnational bribery cases.
With the substantial economic benefits that can be extracted, critical minerals face the same corruption risks of state capture, PEPs, conflicts of interest, bribery, lack of public participation and oversight, and neglect of environmental damage.
“In this context, it can be a momentum to strengthen anti-corruption commitments in ASEAN, which is also still a big challenge,” concluded Mouna.
Source: Liputan6.com