Green Colonialism in the DRC: Europe’s Critical Minerals Dilemma

Abstract

The European Union’s commitment to achieving climate neutrality has positioned it as a global leader in the green transition. Through initiatives such as the European Green Deal and the Critical Raw Materials Act, the EU seeks to reduce greenhouse gas emissions while securing reliable access to the minerals and materials necessary for the technologies necessary for renewable energy production. However, this transition presents a profound contradiction: many of the critical minerals which serve as the building blocks of the EU’s green ambitions originate in countries where the extraction of these materials reflects a neo- colonial power dynamic.

This raises the question as to whether the green transition is as sustainable as one would like to believe. While Europe benefits from cleaner technologies, the communities responsible for the extraction of the raw materials frequently remain excluded from the economic value generated by these clean technologies and suffer at the hands of inhumane mining practices. Using the DRC’s cobalt industry as a case study, this article argues that Europe’s pursuit of climate objectives risks reinforcing neo-colonial economic relationships unless greater attention is paid to resource sovereignty and the investment frameworks governing critical mineral extraction. In particular, fiscal stabilisation clauses are assessed to illustrate how legal mechanisms can restrict the DRC’s ability to benefit fully from its natural resources despite growing global demand.

Keywords: Green Colonialism, Democratic Republic of the Congo, Fiscal Stabilisation Clause, Green Transition, Critical Minerals  

What is Green Colonialism?

Green colonialism refers to the continuation of unequal colonial power relations through the extraction of natural resources required for the global green transition, or the shift towards renewable energy production as a result of climate change (Hamouchene, 2024). While this shift is essential for achieving the net-zero commitments made by many European governments (European Commission, 2026), this article argues that the economic frameworks which support this transition frequently reproduce colonial patterns of economic subjugation, whereby wealth flows from resource-rich countries in the Global South to the industrialised economies of the Global North.

This can be viewed as an expansion of Kwame Nkrumah’s theory of neo-colonialism. Nkrumah argues that independence does not guarantee sovereignty and the right to self- determination of colonised nations; rather, formerly colonised states may retain formal  independence while their economies continue to be directed by foreign capital, multinational corporations (MNCs), and unequal trade relations (Nkrumah, 1965, p. 4). This reproduces the historical colonial power relations which many former colonies have attempted to break free from, simply shifting the control from the colonial entity to the private sector while continuing to engage in resource extraction.

Critical minerals, such as cobalt, demonstrate the continuity between colonialism and neo- colonialism. Technology central to Europe’s decarbonisation strategy, such as electric vehicles, renewable energy storage systems, and digital technologies, all require these critical minerals in their production (Fair Cobalt Alliance, 2022). However, as shown later in this article, the production of the primary commodity form of these minerals, namely the mining of raw minerals, frequently generates limited developmental benefits for the countries which hold these critical resources.  

The DRC’s Resource Curse

The DRC provides one of the clearest examples of the paradox of resource wealth resulting in underdevelopment. The mining sector contributes to approximately 1/4 of DRC’s GDP, with the export value of Congolese cobalt reaching over USD 3 billion (The Observatory of Economic Complexity, 2024). At the same time, the DRC is ranked 171 on the Human Development Index despite holding 73% of the cobalt market (United Nations Development Programme, 2025; Cobalt Institute, 2026, p. 3).

This contradiction reflects what is commonly described as the ‘resource curse’. Instead of stimulating widespread economic development, the resource wealth creates a dependence on primary commodity exports, which leaves the country vulnerable to being dictated by foreign investment in the mining sector, fluctuating commodity prices, and weak industrial diversification. Despite producing the majority of the world’s raw cobalt, the highest-value stage of production, including the refinement of cobalt and production of the newest green technology, takes place primarily outside of the country, with a majority occurring in the People’s Republic of China (PRC) (Cobalt Institute, 2026, p. 4). Consequently, the overwhelming proportion of the value generated by the green energy supply chain is held within foreign nations.

Foreign investment has further reinforced this imbalance, with PRC-based MNCs controlling more than 80% of the DRC’s cobalt production through Infrastructure-for-Resources agreements established as part of the Belt and Road Initiative (Congressional Executive Commission on China, 2023). While these investments have expanded mining capacity, they have also simultaneously concentrated ownership and technological expertise outside of the Congolese economy, limiting the opportunity for domestic capacity development to expand into the more valuable parts of the green energy supply chain.  

Europe’s Green Transition and the Hidden Cost of Sustainability  

The EU’s commitment to achieving net-zero emissions has significantly increased demand for cobalt: as electric vehicle production accelerates and renewable energy infrastructure expands, securing reliable supplies of critical minerals has become a key priority, as shown by the Critical Raw Minerals Act of 2024 (European Parliament & Council of the European Union, 2024). However, through this demand, an ethical contradiction at the heart of the European climate agenda has been exposed.

The ability of European consumers to access environmentally conscious technology at a low price depends upon the exploitative extraction processes occurring thousands of kilometres away. The communities surrounding these cobalt mines experience environmental degradation, unsafe working conditions, and low wages relative to the value of the materials they produce. Investigations by Amnesty International have found evidence that cobalt mined under hazardous conditions, including sites associated with child labour, regularly enters international supply chains before later becoming incorporated into the products that the Global North relies upon (Amnesty International, 2016, pp. 48-55). Although multinational corporations increasingly publish responsible sourcing commitments, intermediaries such as local cobalt-buying houses complicate the tracking process. These buying houses routinely purchase raw materials from artisanal mines which may engage in exploitative practices, then supply these materials to MNCs. Thus, these corporations can obscure any unethical sourcing, which could result in public backlash while maintaining the flow of cheap resources from these exploited workers (Amnesty International, 2016, p. 48).

This disconnect demonstrates that sustainability cannot be solely measured through levels of carbon production. For a truly sustainable transition to occur, the social and economic conditions under which green technology is produced must also be considered. Without addressing the inequalities produced by ongoing resource extraction, there is a risk that climate policy simply shifts environmental burdens from developed economies to these resource-rich Global South nations, which are already bearing the brunt of the burden of climate change (United Nations Office for South-South Cooperation, 2025).  

Fiscal Stabilisation Clauses and Resource Sovereignty

The legal framework governing foreign investments produces further issues in protecting those most affected by exploitative mining practices. Fiscal stabilisation clauses, commonly included within mining agreements and strategic investment partnerships, protect investors from future changes to taxation, royalties, or other fiscal policies which may affect the profitability of their investment (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, 2025, p. 3).

While these provisions reduce investment risk and encourage inflows of foreign capital, they restrict the ability of governments to respond to changing economic contexts. In the case of the DRC, where cobalt demand has risen dramatically alongside Europe’s desire for green technology, stabilisation clauses can prevent the government from reforming preexisting  corporations’ taxation or royalty structures to ensure a greater share of mining revenues support national development (Nikièma, Readhead, Bowers, & Schuagg, 2024).

This creates a structural imbalance between multinational corporations and the DRC: investors benefit from long-term fiscal certainty while the government faces growing expectations to finance demands such as infrastructure, environmental protection, and community development under constrained revenues. As global cobalt prices increase, the inability to enact reforms limits the DRC’s capacity to translate its mineral wealth into sustainable economic development.

When assessing fiscal stabilisation clauses as an aspect of green colonialism, we can see that these clauses institutionalise unequal economic relationships and wealth extraction by limiting the autonomy of resource-producing states in the exact moments that markets would provide the maximum amount of bargaining power. Therefore, the formal sovereignty of these nations is constrained by the material conditions of their resource management imposed by foreign actors, a clear parallel to the neo-colonial dynamics identified by Nkrumah.

The EU has an opportunity to address this imbalance through its critical mineral strategy. Future partnerships and agreements with resource-rich countries should not simply focus on securing reliable mineral supplies but further promote investment agreements that respect the national sovereignty of the given nation. The International Institute for Sustainable Development proposes the introduction of stability premiums, whereby investors pay a slightly higher tax rate in return for being exempt from changes in the fiscal regime. This allows for a way to retain investor confidence while ensuring that these resource-rich countries receive fair compensation for the limits to their sovereignty (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, 2025, p. 4). Adjustments to fiscal stabilisation clauses such as this can mark a positive change towards Europe’s interaction with the resource-rich countries of the Global South, and should be considered in future deals as green technology grows in demand.  

Conclusion

Europe’s transition towards climate neutrality is an essential response to the global climate crisis. However, environmental sustainability cannot be separated from the questions of economic justice and equality. The case of the cobalt mining industry in the DRC demonstrates that the technologies enabling Europe’s green future continue to depend upon structures which disadvantage the communities supplying these critical minerals.

Addressing green colonialism demands structural reforms of investment frameworks that govern access to strategic resources, with legal instruments, such as fiscal stabilisation clauses, used sparingly and with a greater awareness of the constraints they place on the resource-producing states.

If the EU wishes to lead a sustainable green transition, it must ensure that its climate ambitions are accompanied by investment partnerships that recognise the necessary  development of resource-rich countries. By supporting more balanced contractual arrangements, Europe can begin to move beyond the extractive relationships of history towards partnerships founded on mutual benefit and long-term sustainability for all regions.

Note on AI usage: AI was not used to aid in research or in the writing of this piece.

References

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