Critical energy transition minerals (CETMs) are vital for clean energy technologies, but their life cycle is associated with substantial environmental, social, and governance risks. These risks disproportionately affect local communities and countries in the Global South, where much of CETM extraction takes place. Despite bearing the burden of environmental degradation, displacement, and socio–cultural impacts, these communities and countries often reap minimal economic benefits. Recent partnerships and discourse focus on securing supply chains and mitigating geopolitical risks, with little attention to equitable benefit sharing.

The CETMs value chain generates disproportionate environmental and social burdens for local communities, especially in the Global South, while economic benefits often bypass these resource–producing regions. To promote a just and equitable energy transition, it is imperative to reimagine benefit sharing mechanisms for CETMs that go beyond mere compensation for losses to include long–term benefits.

The policy brief recommends a holistic framework for benefit sharing for equitable CETMs in the Global South integrating economic, social, and environmental dimensions across the value chain – from extraction to processing, manufacturing, disposal and recycling. The South Africa–led G20 must lead action on (1) economic diversification and local value addition through knowledge, technical, financial and institutional support; (2) a standardised yet flexible benefit sharing model for equitable distribution of economic, environmental, and social benefits with local communities across the entire value chain of CETMs; (3) transparent supply chains by endorsing a credible global mining standard and traceability mechanism that integrates benefit sharing parameters in the CETMs value chain; (4) regional and Global South cooperation to support trade negotiation, in–built mechanisms for greater benefit sharing in agreements, investor–state dispute resolution etc,; (5) a global fund for just transition in mining; and (6) a people–first approach and accompanying implementation mechanisms to safeguard interests and participation of indigenous communities.