Corporate Capture of the SDGs

The state of Agenda 2030

As the Asia Pacific region inches closer to year 2030, the current situation paints a bleak picture of attaining the 17 Sustainable Development Goals (SDGs) and leaving no one behind.

While the COVID-19 pandemic undeniably reversed years of progress in attaining the goals, the region was already off-track prior the outbreak of the infection. While there was progress in some of the SDGs, there is  significant regression for SDG 13 or climate action , highlighting the urgency to address the impacts of the climate crisis. The impacts brought by climate change will even further delay Agenda 2030, as women and children, farmers, fisherfolk, rural communities, among others, are disproportionately affected. With the region’s current pace, UNESCAP estimates that Agenda 2030 will  only be achieved by 2065 , as public financing remains insufficient to fund development projects. 

While lacking, there is also uneven distribution of Official Development Assistance (ODA) towards SDGs, leading to uneven progress in attaining the goals. The CSO Aid Observatorio provides a snapshot on SDG financing in the region -- SDG 7 (affordable and clean energy) and SDG 9 (industry, innovation and infrastructure) are the preferred targets of development projects. There is a lack of initiative to target SDGs 13 (climate action), 14 (life below water), and 15 (life on land).

Furthermore, while development projects pursued by donor governments and multilateral institutions claim to contribute to these SDGs, the reality poses the opposite. Private sector interests are also promoted at the expense of peoples' lives, livelihoods and rights. In the case of the proposed Permanent Disposal Facility (PDF) of the Lynas Advanced Materials Plant’s (LAMP) in Malaysia, the project has contributed more damage to the achievement of Agenda 2030, more so to the communities in the area.

The LAMP’s PDF initiative costs USD 790 million, with the Japan-Australia Rare Earths (JARE) disbursing a USD 250 million loan. This project is led by Lynas Rare Earths Ltd., an Australian mining company that profits from mining rare earths, materials utilized for power generation and structures. Extraction of rare earths entails the use of toxic chemicals, and the company plans to build a permanent disposal facility (PDF) for the radioactive waste used in this process. By 2023, it is estimated that a million metric tonnes of radioactive waste will be dumped by the company in Kuantan, Malaysia.

Corporate interests over the SDGs

As corporate interests are pursued, the SDGs are undeniably affected and threatened. The dumping of radioactive waste undeniably leads to severe environmental degradation, affecting SDGs 3, 6, 13, 14 and 15. The proposed facility of Lynas Malaysia is located at Bukit Ketam, a rainforest under conservation. A total of 60 hectares of the rainforest is in great danger of being destroyed permanently, and an additional 100 hectares will be eliminated even before scientists could explore its biodiversity. The site is also a peat land, which is crucial for capturing carbon dioxide and unique species.

The facility will also contaminate the water supply of nearby communities, affecting sanitation and livelihoods. For instance, communities in Kuantan have already been experiencing regular water interruption and are forced to use contaminated water caused by the plant. The construction of the PDF will then definitely harm the Kuantan Port and Balok River.

Negative environmental impacts pose a threat to peoples' health and development, regressing on SDGs 3 and 8. Other rare earth mineral extraction plants in the country  have affected children's health, with an increase in cases of leukemia and birth defects  in communities near the plant. Exposure to the toxic chemicals can lead to cancer and other serious illnesses, especially harmful for the workers of the plant.

The process of planning, designing and implementing the PDF project also largely excludes civil society organizations. Negatively impacting SDG 17 or partnerships for the goals, there was no consultation with affected communities and organizations before the project implementation, and only minimal participative processes were conducted after the project has been implemented. There is also a lack of transparency from the partnership and processes of both the corporation and the Malaysian government. Criticism of the project, while widespread, is repressed as communities, activists, organizations and journalists are threatened by armed forces.

Aid/Watch Australia is part of the Australian-Malaysian Stop Lynas campaign, which is working with Malaysian organizations to oppose the construction of the facility. To date, Aid/Watch has mobilized 665 people to oppose the Lynas PDF project. The campaign calls on the Lynas Rare Earth and the government of Malaysia to become transparent, observe consultations of affected communities, and to provide inclusive and participatory processes.

The corporate capture of development, or the prioritization of private sector interests over genuine progress for the people, has and will continue to be contradictory to Agenda 2030. As witnessed in the PDF project in Kuantan, private corporations are responsible for causing massive environmental impact, affecting the marginalized and vulnerable the most. Continued corporatization of development projects and processes will further contribute to the regression in attaining the SDGs.

There is a need to hold development actors accountable in ensuring that projects and processes are inclusive, participatory and transparent. Rights must always be secured and upheld, and development must be owned and determined by the people. It is only through the observance of these principles that a genuine inclusive and sustainable development, which leaves no one behind, will be achieved.