Green Economy vs. Green Colonialism: Respect for Indigenous Peoples' Rights in the Energy Transition

Reflections from the 12th UN Forum on Business and Human Rights

As industrialised countries rush to secure minerals for their energy transition, we urgently need a new perspective on how decarbonisation should proceed without violating human and Indigenous Peoples’ rights, the 12th UN Forum on Business and Human Rights (UNFBHR), emphasised.

The Forum, which took place November 21-23, 2023 in Geneva, welcomed a number of Indigenous leaders and presentations concerning the rights of Indigenous Peoples, including the OHCHR session Indigenous Peoples in the green economy and a side-event presented by the Securing Indigenous Peoples’ Rights in the Green Economy (SIRGE) Coalition. 

 “The transition to the green economy brings with it incredible challenges and opportunities for Indigenous Peoples,” said Kate Finn (Osage), Executive Director of First Peoples Worldwide and Chair of the SIRGE Coalition Executive Committee. “Indigenous Peoples are an integral part of our global economic and cultural solution set, which is necessary to meet climate goals,” she added. “The energy transition opens up a moment to rethink global interaction with Indigenous Peoples as innovators, as knowledge keepers, and as business leaders.”

Yet the impacts to Indigenous Peoples in the energy transition continues to be overlooked, even while Indigenous Peoples are on the frontlines facing harm from both climate change and risky solutions pushed by industrialised countries and corporations.

Most Energy Transition Minerals are on Indigenous Peoples' Lands

Studies in recent years show that 54% of all energy transition minerals are located on or near Indigenous Peoples’ lands. In the U.S., upwards of 97% are within 50 kilometres of Native American reservations.

Positioned as a cornerstone of the energy transition by governments and industries alike, mining is being recast as a “green” industry. But mining continues to be a high-risk sector and is considered a “green myth,” as reported by the European Environmental Bureau.   

Moreover, transitional mineral mining is being carried out without respecting Indigenous Peoples' rights, particularly their right to Free, Prior and Informed Consent (FPIC).

"First colonisers came to our lands for the gold rush…then they started extracting oil and gas,” said Indigenous Russia Editor-in-Chief Dmitry Berezhkov, who is part of the Batani Foundation, a founding member of the SIRGE Coalition. “Today we see an explosion of mining for transitional minerals on our traditional lands, which are needed for the so-called green economy." 

For Mining to be FPIC-Ready, Compliance with the UNGPs and OECD Guidelines is a Must

States and businesses must comply with international agreements and guidelines, including the Sustainable Development Goals (SDGs), Paris Agreements, UN Guiding Principles, UN Declaration on the Rights of Indigenous Peoples, and OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. States and businesses need to respect human and Indigenous Peoples' rights in their value chain and understand the risk they take on when mineral suppliers violate these rights.

The question: is the mining industry FPIC-compliant?

The answer: no. 

OXFAM recently evaluated the FPIC policies of 43 companies involved in the exploration and production of five minerals used in rechargeable lithium-ion batteries: cobalt, nickel, lithium, graphite, and copper. Out of 43 companies surveyed, only two were unambiguously committed to FPIC. This study also reported that 13 companies use the term FPIC in a weak form, referring to it as an aspiration but not achievement. However, the study focuses only on policies and does not report on actual practices. Experience on the ground demonstrates that projects, more often than not, go forward even when Indigenous Peoples do not consent.

Francisco Calí Tzai (Maya Kakchiquel), UN Special Rapporteur on the rights of Indigenous Peoples, reported at the Forum that the most common problems Indigenous Peoples face include lack of FPIC and insufficient or no remuneration for impacted Indigenous Peoples who live on the lands where mining sites are located. This highlights a profound disregard for Indigenous communities' rights and well-being.

Mining Transgressions on Indigenous Peoples’ Rights are Perpetuated throughout the Energy Transition 

Statements from panellists echo throughout the public, with voices denouncing the breach of FPIC not only in mining projects but energy transition projects across the globe: South India, denouncing FPIC breaches in coastal areas; Burundi, denouncing several and complex Indigenous Peoples' rights violations in different African countries; Botswana denouncing the lack of land ownership by Indigenous Peoples and the resulting consequences for not being able to exercise their rights; French Guiana, denouncing an electric plant for hydrogen production supported by the French State, lack of Indigenous Peoples consent and repression; and Chile denouncing hydroelectric projects that are labelled as “clean projects.”

The common denominator: Indigenous Peoples' right to FPIC is violated in green economy projects, and Indigenous Peoples are confronted with multiple projects and developments whose complex cumulative effects are endangering their well-being and lives.

The SIRGE Coalition shared this message at the UNFBHR side event, adding the voices of Sami Peoples from Russia and Indigenous Peoples from Argentina, as did the Indigenous Peoples’ Caucus, leading to the Indigenous Peoples’ Opening Statement at the Forum, brought by Gervais Ndihokubwayo from Burundi.

The Way Forward: Policymakers and Businesses Need to Ensure Respect of FPIC to Prevent Green Colonialism

The term “green colonialism” is becoming increasingly common, reflecting that governments and businesses are creating and implementing new policies, legislation, and projects to secure raw materials without ensuring Indigenous Peoples' participation or FPIC. 

As Special Rapporteur Calí Tzay said, ”economic and financial decision-makers play a crucial role in preventing this by requiring Indigenous Peoples to participate in environmental programs and effective due diligence protocols prior to the approval of projects or green economy plans.”

Finn noted, “Businesses are responsible for respecting Indigenous Peoples via the UNGPs by implementing human rights due diligence with explicit reference to Indigenous Peoples and FPIC.”

Representative Adaluz Garcia Pedro (Maya) supported this, saying that companies operating within Indigenous Peoples’ territories must adhere to the UN guidelines on human rights, as well as the Escazú Agreement.

To be sustainable, the energy transition must be just and equitable, not only “green.” We need to recognise Indigenous Peoples as crucial allies, and to respect their rights, particularly their right to FPIC to form new solution sets and avoid repeating the mistakes of the past.

Operationalizing FPIC will not slow progress towards our shared climate goals; it will ensure that we are all part of the global solution, noted Finn.