ILO calls for decent work in Asia-Pacific’s renewable energy and critical mineral supply chains

BANGKOK (ILO News) – A new brief from the International Labour Organization (ILO) highlights that although decent work gaps persist in Asia and the Pacific’s booming renewable energy and critical mineral supply chains, efforts to increase the added value in production are generating more formal, safer and better-paying jobs.

Decent work in renewable energy and critical mineral supply chains: Trends, challenges and innovations in Asia and the Pacific presents research on nickel supply chains in Indonesia and the Philippines and on the copper supply chain in Mongolia.

It finds that decent work deficits are particularly prevalent in lower supply chain tiers and artisanal or small-scale mining where widespread informality remains common. Other challenges identified include limited protection of freedom of association rights and barriers to social dialogue, occupational safety and health hazards and risks, and gender discrimination.

However, where there has been a shift into downstream segments, such as nickel processing and electric vehicle (EV) battery manufacturing in Indonesia and Mongolia, workers are benefiting from significantly better working conditions, including higher wages, formal employment, and better social protection.

With demand for critical minerals booming we must not lose sight of the workers who make this transition possible across every tier of the supply chain. 

Tuomo Poutiainen, ILO Deputy Director for Asia and the Pacific

To ensure that the growth of renewable energy and critical mineral supply chains translates into decent work for all, the ILO calls for stronger application of international labour standards, action to address persistent informality, inclusive skills upgrading, as well as strengthening governance and enforcement of labour rights and working conditions across the region. 

"With demand for critical minerals booming we must not lose sight of the workers who make this transition possible across every tier of the supply chain. Governments, employers and trade unions each have a critical role to play in ensuring that the shift to clean energy delivers decent, safe and sustainable jobs," said Tuomo Poutiainen, ILO Deputy Director for Asia and the Pacific.

Critical minerals such as copper, cobalt, lithium, nickel, graphite and rare earth elements are indispensable for the global transition to clean energy. They are essential for technologies such as EVs, renewable energy systems, and energy storage solutions.

The Asia and the Pacific region is leading the global shift to clean energy. The renewable energy sector supports about 10.5 million jobs in Asia and the Pacific, nearly two‑thirds of global renewable energy employment. Many more jobs are expected as demand for critical energy transition minerals is projected to triple by 2030 and to quadruple by 2040.