The green transition and human rights at a crossroads

What you need to know:

  • According to the EU’s 2023 special report on its industrial policy on batteries, China in particular has become by far the world’s largest battery producer.
  • In 2021, China had a production capacity of 655 gigawatt hours (GWh), or 76  percent of global capacity, well ahead of the EU (7 percent), the United States (7  percent) and South Korea (5  percent). The report further acknowledges China as a dominant player in the upstream stages of the value chain, notably the supply of several battery raw and refined materials, in particular cobalt, lithium, nickel and natural graphite, which are critical in the green transition. 

The human rights movement and the emergence of the green transition, two crucial issues on the global stage, could be at cross-purposes. This trajectory has seen the Parliament and the Commission of the European Union (EU) reach a consensus on the text of the Critical Minerals Act (CRMA), which aimed to deal with third-country dependence for critical raw materials and counter China’s dominance in the green transition and supply chain influence through their increased production, refining, and recycling.

According to the EU’s 2023 special report on its industrial policy on batteries, China in particular has become by far the world’s largest battery producer. In 2021, China had a production capacity of 655 gigawatt hours (GWh), or 76  percent of global capacity, well ahead of the EU (7 percent), the United States (7  percent) and South Korea (5  percent). The report further acknowledges China as a dominant player in the upstream stages of the value chain, notably the supply of several battery raw and refined materials, in particular cobalt, lithium, nickel and natural graphite, which are critical in the green transition. 

On the flipside, the Western countries are taking the lead in passing human due diligence laws and yet other Africa’s trading partners like China and other countries are foot-dragging on the same. This discrepancy raises concerns about potential human rights exploitation in the mining and production of critical minerals, particularly in African countries.
Western countries find themselves in a Catch-22. While promoting human rights within their supply chains and maximising profits, they faced unbridled competition from China and other countries that seemed less concerned about human rights violations. To counter this, some EU companies have successfully lobbied for voluntary certification regimes and standards within their due diligence laws. This approach, however, leaves the protection and promotion of human rights in global supply chains at a crossroads.

In Africa, a disturbing inclination develops as many states voluntarily shoulder a passive role in the green transition race. There is no proactiveness in advancing human rights in the supply chains of critical minerals.  For example, only two countries, Uganda and Kenya, accounting for 3.70 percent of the African countries, have a National Action Plan on Business and Human Rights. 
This backseat approach confirms that our governments have chosen to be the Dhikula, a clown at the ongoing party—the green transition race—where they are supposed to be the bride. The passiveness raises concerns about the predicament of victims in critical mineral-rich areas who seem to be on their own. 

However, such voluntary audits and certification regimes do not offer sustainable, effective remedy mechanisms.  The Rana Plaza disaster in Bangladesh serves as a sad example of how audited compliance regimes failed to prevent a tragedy that claimed the lives of over a thousand workers.  Shockingly, prior to the disaster, audit firms, basing on voluntary certification standards such as Amfori BSCI, found the Rana Plaza building compliant. 

In the context of African countries, the lack of proactive measures in the green transition race highlights a bigger issue. The reliance on voluntary certification regimes, which have fallen short in identifying and addressing environmental and human rights risks, like in the Rana Plaza case, on the one hand, and countries like China that seem to trend cautiously on human rights, on the other hand, seriously present a challenge that has to be addressed. 

At this moment, Africa cannot wait for the West or China to be shepherded into running human rights-based economies.  Instead, there is a need for political will in Africa to push for its narrative, aligning it with both its economic interests and international human rights standards through diplomacy, policy and legislative reforms for a sustainable future.

                Simon Peter Esomu     Business and human rights     lawyer