Search

Begin New Search Topic Extractive Industries Publishing Institution Natural Resource Governance Institute

1. Unfinished Business: Contract Transparency in the Extractive Industries Transparency Initiative

Author:
Robert Pitman and Aubrey Menard
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
How are EITI-implementing countries faring with disclosure of oil, gas and mining contracts? The urgency of climate action and the complexity of the energy transition mean it has never been more important to be able to understand the deals made between companies and governments for oil, gas and minerals. For this reason, since 2021, implementing countries of the Extractive Industries Transparency Initiative (EITI) have been required to disclose the contracts between governments and extractive companies. This briefing by the Natural Resource Governance Institute (NRGI), Oxfam and Publish What You Pay (PWYP) surveys the contract disclosure practice of the 57 EITI-implementing countries to understand the extent of their contract disclosure practice. The briefing highlights trends, areas of insufficient disclosure and best practices. Readers can explore the data on a dedicated visual tool on the #disclosethedeal microsite.
Topic:
Corruption, Natural Resources, Accountability, Transparency, and Extractive Industries
Political Geography:
Global Focus

2. Extracting Emissions: Why Resource-Rich Countries Should Cut Emissions from Extractive Operations

Author:
William Davis and Amir Shafaie
Publication Date:
11-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Global efforts to mitigate climate change are likely to greatly reduce demand for fossil fuels over time. Countries that depend on revenues from these resources should diversify their economies. Investors and customers are pressuring the oil, gas and mining industries to cut greenhouse gas emissions from their production processes. This trend is likely to intensify, including with new policies from key trading partners seeking to reduce greenhouse gas emissions from the extractive commodities that they import. Examples of such measures include the European Union’s Carbon Border Adjustment Mechanism and its regulations on methane emissions from oil, gas and coal operations. To stay competitive, governments of resource-rich countries will need to cut emissions from oil, gas and mining operations in their territories. Some are already doing this. But progress has been slow, and much work remains. To improve results, a wider set of stakeholders than just governments and including civil society actors should engage on the issue and seek increased transparency and accountability on emissions from the extractive industries.
Topic:
Climate Change, European Union, Carbon Emissions, and Extractive Industries
Political Geography:
Europe and Global Focus

3. How Anticorruption Actors Can Use the EITI Standard

Author:
Charlotte Boyer and Matthieu Salomon
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
In June 2023, the Extractive Industries Transparency Initiative (EITI) adopted the 2023 EITI Standard, which introduced significant new requirements that are either mandatory, expected or encouraged for implementing countries and companies, compared to the 2019 Standard In particular, the Standard now includes several obligations aimed at bringing more information into the public domain to advance gender equality, a just energy transition and anticorruption efforts. In 2021, building on an EITI-commissioned paper on the role of the EITI in fighting corruption, NRGI published two reports which showed how anticorruption actors could use EITI disclosures and spaces to advance their work, and recommended ways to strengthen the role and potential of the EITI for anticorruption purposes. In this new guide, NRGI updates its guidance for anticorruption actors—such as civil society, journalists, EITI Multi-Stakeholder Groups (MSGs) and government enforcement agencies—by outlining how the innovations of the 2023 Standard may help advance their efforts.
Topic:
Civil Society, Corruption, Stakeholders, Extractive Industries, and Standards
Political Geography:
Global Focus

4. Parliamentary Briefing: Contract Disclosure

Author:
Natural Resource Governance Institute
Publication Date:
03-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Extractive contracts are principal documents between a government and a company that details the terms and conditions under which a resource is exploited. While many jurisdictions have not traditionally made their oil, gas and mineral contracts available to the public, more recent developments show that contract disclosure is feasible and desirable for a wide range of countries. This briefing provides a number of reasons for the disclosure of extractive contracts. It also looks at questions and strategies for parliamentary monitoring and enforcing extractive agreements.
Topic:
Corruption, Government, Natural Resources, Accountability, and Extractive Industries
Political Geography:
United Kingdom and Europe

5. Parliamentary Briefing: EITI

Author:
Natural Resource Governance Institute
Publication Date:
03-2015
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The Extractives Industries Transparency Initiative (EITI) seeks to improve transparency and accountability in the oil, gas and mining sectors. In countries participating in EITI, oil, gas and mining companies must publish what they pay to governments, and governments must publish what they receive. Parliaments play an essential role in working to ensure that oil, gas and mining resources benefit the public interest. The EITI reporting scheme offers many benefits to members of parliament including providing essential information on revenues, licenses, and production data for oversight purposes. This briefing provides an introduction to the EITI standard, and suggests questions and strategies for successful parliamentary engagement with the EITI.
Topic:
Corruption, Natural Resources, Accountability, and Extractive Industries
Political Geography:
United Kingdom and Europe

6. EITI: A Parliamentary Tool for Extractive Sector Governance in Liberia and Yemen

Author:
Laury Haytayan, Luke Smitham, and Femke Brouwer
Publication Date:
08-2014
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Liberia in West Africa and Yemen in the Middle East hold vast reserves of oil and other natural resources. As participants of the Extractives Industries Transparency Initiative (EITI), both states have voluntarily disclosed payments received from extractive companies in a standardized reporting process overseen by its own multi-stakeholder group (MSG). But unlike the majority of EITI participating countries, Liberia and Yemen have enlisted a key group of actors-parliamentarians-in their efforts to better govern resources and resource revenues. Lending credibility and capacity to the MSG, these political leaders have used their parliamentary mandate to improve policy and initiate reforms in the extractive sector, as well as facilitate EITI reporting and help oversee EITI compliance.
Topic:
Oil, Natural Resources, Governance, Transparency, and Extractive Industries
Political Geography:
Africa, Middle East, Yemen, and Liberia

7. Direct Social Expenditures: A Monitoring Guide for Civil Society Organizations

Author:
Rocio Lopez
Publication Date:
06-2013
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
This paper provides civil society organizations with different strategies to obtain and analyze detailed information on direct social expenditures (DSE) by companies. It also provides civil society with useful lessons on advancing the transparency agenda in this area. The World Bank defines corporate social responsibility (CSR) as “companies’ commitment to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their quality of life in a way that is beneficial for business and also for development.” Extractive industries engage in CSR because their activities are considered among the most environmentally and socially disruptive and it is critically important for them to secure their “social licenses to operate.” As part of their CSR extractive companies invest significant amounts of resources to undertake social development programs; in 2001, oil, gas and mining companies disbursed more than $500 million in community development programs. These expenditures can have a large impact on small local economies. When poorly conceived and implemented, they can lead to corruption and undermine government authorities and institutions. In addition, these resources are obtained on the basis of concessions of oil, gas and minerals that belong to citizens. Companies receive fiscal concessions or incentives from the social activities undertaken in the countries where they operate. All these reasons make it imperative that civil society organizations monitor DSE to ensure they are spent effectively. Companies can employ different mechanisms to disburse DSE. These could be a function of program objectives and other contextual factors. A company might implement different mechanisms in different countries. It could use public or private disbursement channels, or a combination of both. CSOs need to understand these mechanisms and their pros and cons in order to monitor them. The paper studies the experience of two CSOs—Grupo Propuesta Ciudadana (GPC) in Peru and Instituto Brasileiro de Análises Sociais e Econômicas (IBASE) in Brazil—that successfully made extractive companies disclose information on their expenditures and have since monitored and evaluated the impact of these expenditures. Both CSOs created transparency indices and performed social audits to rigorously assess and rank company performance and undertake evidence-based policy advocacy. GPC successfully obtained information from more than 30 companies on $900 billion worth of social expenditures, and IBASE convinced over 300 private companies to disclose their social audits. The paper also explores experiences of countries that have negotiated including direct social expenditures in the disclosure requirements of the Extractive Industries Transparency Initiative (EITI). Despite progress in companies disclosing relevant data in recent years, transparency of direct social expenditures is more the exception than the norm. Companies should improve their reporting by providing detailed information about the types of projects funded, the objective of such projects, the amounts disbursed, and the persons responsible for allocating these resources. Contracts that include social expenditure obligations should be available for public consumption.
Topic:
Civil Society, Governance, Business, Extractive Industries, and Social Responsibility
Political Geography:
Global Focus

8. Local Content Initiatives: Enhancing the Subnational Benefits of the Oil, Gas and Mining Sectors

Author:
Natural Resource Governance Institute
Publication Date:
07-2013
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Resource-rich regions usually expect and strive for local economies to benefit from oil, gas and mineral projects. Unfortunately, that is not always the case. These regions do not always know how to take advantage of extractive activities to create sustainable economic development, be it creating jobs and developing local businesses or building skills and improving technologies. Local content is the processes of building such economic capital at the national and subnational level, and meeting set public policy objectives. This paper offers guidance on designing and implementing local content initiatives in the oil, gas and mining sectors to ensure economic sustainability within producing regions. It aims to answer the question of how national and subnational governments, industry and civil society can maximize local benefits through partnerships among governments, companies and civil society organizations (CSOs). Governments should set clear targets based on which companies should make commitments and publish transparent reports on results. CSOs can then analyze the results and monitor progress of local content initiatives.
Topic:
Oil, Natural Resources, Governance, Gas, Mining, and Extractive Industries
Political Geography:
Global Focus