Study reveals overlooked investment sector that could reshape global economy: 'It fosters international partnerships'

A new study published in Communications Earth & Environment uncovered a powerful but overlooked strategy to speed up the clean energy transition. It could be a game changer for countries that have the minerals the world depends on but not the clean energy to match.

The study focused on countries such as the Democratic Republic of Congo, Indonesia, and South Africa. These countries are rich in critical minerals such as cobalt and nickel — essential for electric vehicles and solar panels — but remain behind in clean energy infrastructure. One major reason is that half of their mineral production is controlled by foreign direct investment from wealthier nations.

Here's the good news: Researchers found that if just 40% of FDI-backed mining projects were redirected toward local clean energy development, the countries' renewable capacity could be boosted dramatically. The shift would not only power local economies and create jobs; it could also help stabilize global supply chains and reduce reliance on dirty energy sources such as oil and gas.

It's a smart financial move too. Clean economy investments have outperformed those linked to dirty energy in long-term growth, and smart investors are noticing. Redirecting capital toward renewable development in emerging markets could create massive new opportunities for innovation and profit. 

If you're interested in making a profit while putting your money toward a greener world, you can learn more about investing in clean economy stocks and upgrading to a cleaner bank.

"Our results indicate that redirecting critical mineral exports toward domestic clean energy projects in critical material-rich but clean energy-poor countries could reasonably enhance their clean energy capacity, reducing reliance on foreign economies and accelerating local energy transitions," the study's authors wrote.

"In turn, it fosters international partnerships that support sustainable development and contribute to global emission reductions, offering a pathway for a fairer and more resilient global energy transition," they added.

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