Development banks are backing problematic mineral projects, report finds

The International Accountability Project (IAP) has released a report revealing that development banks are often supporting problematic mineral projects, which are associated with significant environmental, social, and human rights risks. The IAP analyzed 77 projects globally, approved between 2023 and 2025, and the results are documented in the Transition Minerals Finance Tracker, an interactive online database.

The findings show that over half of the projects analyzed, and nearly three-quarters of African projects, have evidence of causing harm to local communities. Vaishnavi Varadarajan, program coordinator at IAP, told Mongabay that many multinational mining corporations, despite their poor human rights track record, continue to obtain loans from development banks.

This raises questions about the due diligence conducted by the banks before approving such loans. As countries worldwide shift towards renewable energy sources like solar, wind, and electric vehicles to reduce greenhouse gas emissions, these technologies rely on minerals and rare earth elements often sourced from the Global South.

The report argues that this situation perpetuates a colonial form of resource extraction, with countries financing extraction benefiting economically while the raw material-producing nations face water depletion and contamination.