Foreign direct investment can enhance the development of clean energy in countries with critical materials
Abstract Foreign direct investment is a critical material extraction and revenue generation tool, but its role in reducing clean energy vulnerability is often overlooked. Here, we use the clean energy vulnerability index and explore how foreign direct investment mitigates energy shortages in countri...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Nature Portfolio
2025-05-01
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| Series: | Communications Earth & Environment |
| Online Access: | https://doi.org/10.1038/s43247-025-02319-9 |
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| _version_ | 1849729054485250048 |
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| author | Jean Pierre Namahoro Wu Qiaosheng Deyun Wang Zhou Na |
| author_facet | Jean Pierre Namahoro Wu Qiaosheng Deyun Wang Zhou Na |
| author_sort | Jean Pierre Namahoro |
| collection | DOAJ |
| description | Abstract Foreign direct investment is a critical material extraction and revenue generation tool, but its role in reducing clean energy vulnerability is often overlooked. Here, we use the clean energy vulnerability index and explore how foreign direct investment mitigates energy shortages in countries abundant in critical materials such as bauxite, cobalt, nickel, manganese, and platinum. We found that from 2016 to 2021, foreign direct investment controlled large portions of critical materials in vulnerable countries, with 56% of bauxite, 59% of cobalt and nickel, 52% of manganese, and 57% of platinum. Redirecting 40% of foreign direct investment-controlled production towards the deployment of clean energy could reduce energy vulnerability in the Democratic Republic of Congo, Indonesia, South Africa, and Guinea. The foreign investment redirection could enhance global energy transition equity, offering a strategic pathway for aligning with sustainable energy goals. |
| format | Article |
| id | doaj-art-6ec9da7dce9b4f3ebffd3fd431847e3e |
| institution | DOAJ |
| issn | 2662-4435 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Nature Portfolio |
| record_format | Article |
| series | Communications Earth & Environment |
| spelling | doaj-art-6ec9da7dce9b4f3ebffd3fd431847e3e2025-08-20T03:09:20ZengNature PortfolioCommunications Earth & Environment2662-44352025-05-016111010.1038/s43247-025-02319-9Foreign direct investment can enhance the development of clean energy in countries with critical materialsJean Pierre Namahoro0Wu Qiaosheng1Deyun Wang2Zhou Na3School of Economics and Management, China University of Geosciences (Wuhan)School of Economics and Management, China University of Geosciences (Wuhan)School of Economics and Management, China University of Geosciences (Wuhan)School of Economics and Management, China University of Geosciences (Wuhan)Abstract Foreign direct investment is a critical material extraction and revenue generation tool, but its role in reducing clean energy vulnerability is often overlooked. Here, we use the clean energy vulnerability index and explore how foreign direct investment mitigates energy shortages in countries abundant in critical materials such as bauxite, cobalt, nickel, manganese, and platinum. We found that from 2016 to 2021, foreign direct investment controlled large portions of critical materials in vulnerable countries, with 56% of bauxite, 59% of cobalt and nickel, 52% of manganese, and 57% of platinum. Redirecting 40% of foreign direct investment-controlled production towards the deployment of clean energy could reduce energy vulnerability in the Democratic Republic of Congo, Indonesia, South Africa, and Guinea. The foreign investment redirection could enhance global energy transition equity, offering a strategic pathway for aligning with sustainable energy goals.https://doi.org/10.1038/s43247-025-02319-9 |
| spellingShingle | Jean Pierre Namahoro Wu Qiaosheng Deyun Wang Zhou Na Foreign direct investment can enhance the development of clean energy in countries with critical materials Communications Earth & Environment |
| title | Foreign direct investment can enhance the development of clean energy in countries with critical materials |
| title_full | Foreign direct investment can enhance the development of clean energy in countries with critical materials |
| title_fullStr | Foreign direct investment can enhance the development of clean energy in countries with critical materials |
| title_full_unstemmed | Foreign direct investment can enhance the development of clean energy in countries with critical materials |
| title_short | Foreign direct investment can enhance the development of clean energy in countries with critical materials |
| title_sort | foreign direct investment can enhance the development of clean energy in countries with critical materials |
| url | https://doi.org/10.1038/s43247-025-02319-9 |
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