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21. Measuring Extractives Dependency: Why it Matters and New Approaches

Author:
William Davis
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
When countries depend too heavily on extractive industries (extraction of nonrenewable natural resources) it can pose problems for their economies. These include: The volatility of natural resource commodity prices, which can cause shocks that are difficult for the country to manage The exhaustibility of natural resources and the challenges of replacing them as a source of income when they run out The political economy of governments relying on natural resources, which seems to make governments less effective (e.g., if they rely on resource wealth to fund themselves rather than developing other sectors of the economy) To address resource dependency, we need to be able to measure it. With this in mind, NRGI has produced a new dataset that builds on existing literature to provide a broad range of indicators of dependency on the extractive industries. This dataset is primarily for internal use by NRGI colleagues, but is also freely available to interested researchers. The aim of this dataset is to support a more multidimensional approach to understanding resource dependency, its causes and consequences. The related briefing explains the rationale behind the dataset and its various indicators, and some includes some initial insights based on analysis of the data.
Topic:
Natural Resources, Tax Systems, Data, Revenue Management, and Dependency
Political Geography:
Global Focus

22. Nature-based solutions to development and climate change challenges: Understanding ecosystem-based adaptation approaches

Author:
Marie Ladekjær Gravesen and Mikkel Funder
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Nature-based Solutions (NbS) to climate- and development-related challenges have recently gained attention in development cooperation. Among other, approaches that fall under the NbS umbrella include Ecosystem-based Adaptation (EbA), Ecosystem-based Mitigation (EbM) and Ecosystem-based Disaster Risk Reduction (Eco-DRR). This new DIIS Working Paper focuses on nature-based solutions to climate change adaptation, EbA. It provides an overview of selected lessons learnt from EbA in the context of development cooperation, with a particular emphasis on the opportunities and risks regarding poverty alleviation and rights. It generates learning for Danish development cooperation, including future programming under Denmark’s 2021 development strategy, in which NbS approaches are emphasised. However, the paper can also be read as a general discussion of experiences with EbA in the development context. The three-legged EbA approach focuses on human well-being, ecosystem management, and climate change adaptation. EbA has already been applied to a range of ecosystems, including the restoration of mangroves to shield them against storm and sea-level rises, the management of watersheds to protect against droughts and flooding, the management of rangelands to inhibit desertification and land degradation, and more sustainably managed fisheries and forestry to tackle food insecurity. EbA thus not only addresses the restoration of already degraded ecosystems, but also the sustainable use, management, and conservation of intact ecosystems. The paper provides a conceptual overview of EbA in relation to NbS, outlines the potential in using EbA approaches, and describes the landscape of the institutions and agencies that fund, promote and implement EbA. The paper then provides a synthesis of lessons learned from PES and REDD+ schemes that are of relevance to EbA. For instance, it is emphasised that many REDD+ measures have effectively existed as project islands that were not anchored in national or subnational planning and governance mechanisms. As a result, the conservation activities and socioeconomic benefits were often not effectively integrated or scaled up beyond small project sites. If comprehensively implemented, the EbA approach builds on these experiences by insuring full inclusion of stakeholders from all relevant sectors, as well as demanding full integration in existing policies, planning and governance practices from the ministry levels to sub-national governments. Among the final recommendations and possible entry points for Danish development cooperation, the paper highlights that the support must have a strong focus on ensuring that EbA is pro-poor (i.e. supports poverty alleviation) and rights-based (i.e. supports the rights of local resource users). Experience from EbA and related efforts show that EbA is not automatically pro-poor or supportive of local rights to natural resources and ecosystem services. In particular, there is insufficient attention to and knowledge of rights issues in EbA. Therefore, Danish development cooperation should help lead the way in ensuring that EbA takes a rights-based approach and supports poverty alleviation.
Topic:
Agriculture, Climate Change, Development, Environment, Poverty, Natural Resources, Water, Food, Governance, Inequality, Investment, and Land Rights
Political Geography:
Global Focus

23. Sustainable Mobility: Renewable Hydrogen in the Transport Sector

Author:
Nicola De Blasio, Charles Hua, and Alejandro Nuñez-Jimenez
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The transportation sector is the second-largest source of CO2 emissions, after electricity and heat generation, accounting for about 25 percent of global emissions.1 However, it is also one of the most challenging to decarbonize due to its distributed nature and the advantages of fossil fuels in terms of high energy densities, ease of transportation, and storage. Moreover, the degree of difficulty in decarbonizing varies significantly across the sector, making the challenge even more daunting. So far, emissions reduction strategies have focused on improving vehicle and system-wide efficiencies, mode switching, and electrification. The latter is proving relatively easy for smaller vehicles that travel shorter distances and carry lighter loads. However, sector-wide decarbonization pathways will require a transition to low-carbon fuels and the deployment of enabling infrastructure to support innovation at scale. Renewable hydrogen holds promise in sustainable mobility applications, whether by powering fuel-cell electric vehicles (FCEVs) like cars, trucks, and trains or as a feedstock for synthetic fuels for ships and airplanes. Fuel cells convert hydrogen-rich fuels into electricity through a chemical reaction. FCEVs use a fuel cell, rather than a battery, to power electric motors, and operate near-silently and produce no tailpipe emissions. Hydrogen-powered vehicles offer key advantages, including shorter refueling times, longer ranges, and a lower material footprint compared to lithium battery-powered alternatives. However, high costs of ownership and a lack of enabling infrastructure are key challenges that must be addressed through policy support, technological innovation, and financial investment. Hydrogen can complement existing efforts to electrify road and rail transportation and provide a scalable option for decarbonizing shipping and aviation. Figure 1 summarizes the mobility segments for which battery electric vehicles (BEVs), FCEVs, and vehicles running on bio- or hydrogen-based synthetic fuels are most applicable.
Topic:
Energy Policy, Environment, Natural Resources, Renewable Energy, Transportation, and Hydrogen
Political Geography:
Global Focus

24. COVID-19 and Conservation: Crisis Response Strategies that Benefit People and Nature

Author:
Ina Lehmann, César Rodríguez Garavito, and Anna Spenceley
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The COVID-19 pandemic is a global human health crisis that is deeply intertwined with the global biodiversity crisis. It originated when a zoonotic virus spilled over from wild animals to humans. Viruses can spread easily in disturbed ecosystems, and with increasing contact between humans and wildlife the risk of contagion grows. Conservation is crucial to reduce the risks of future pandemics, but the current pandemic also impacts on conservation in many ways. In this Briefing Paper we suggest strategies to alleviate the pandemic’s adverse effects on conservation in the Global South. Many zoonoses originate there, and livelihoods are strongly dependent on natural resources. The paper considers the pandemic’s overarching economic implica-tions for protected and other conserved areas, and specific ramifications for the tourism and wildlife trade sectors, which are closely related to these areas. As economies shrink, natural resources come under pressure from various sides. Financial resources are reallocated from the conservation to the health sector, countries decrease environmental protection standards to boost economic recovery, and poor people in rural regions resort to protected wild resources as a subsistence strategy. Together, these trends speed up the loss of biodiversity and ecosystem services and create supportive conditions for the emergence of zoonotic disease and the undermining of livelihoods.
Topic:
Environment, Natural Resources, Nature, COVID-19, and Health Crisis
Political Geography:
Global Focus

25. Fossil Fuel Subsidy Inventories vs. Net Carbon Prices: a Consistent Approach for Measuring Fossil Fuel Price Incentives

Author:
Jens Bohm and Sonja Peterson
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Different reports including the broadly cited OECD fossil fuel subsidy inventory arrive at high monetary values of fossil fuel subsidies and suggest that phasing out these subsidies has a high potential to increase the efficiency of climate policies. We show that the inventory approach gives misleading information about this potential since there is little correlation with net carbon prices that actually reflect the stringency of climate policies. We use data on net fossil fuel taxation from the OECD´s Taxing Energy Use report and augment it with data on subsidies and emission permits, to calculate national and sectoral net carbon prices for the top six emitters (China, US, India, Russia, Japan and Germany) and for Poland and Sweden, two European countries perceived as examples of opposing environmental policies. Our results show that in high-income countries, subsidies mainly relate to reduced fuel tax rates for certain uses, so that e.g. Sweden, for which the OECD inventory reports subsidies per ton of CO2 26 times higher than the US, has a 770% higher national net carbon price than the US. While Germany and Russia have similar subsidy levels in the OECD inventory, the national net carbon price in Germany is 50 €/tCO2, while producer subsidies lead to a negative net carbon price of -6€/tCO2 in Russia. Our results illustrate that raising taxes on fossil fuels will often lead to higher reported inventory subsidies. Inventory measures thus give little information about the efficiency of climate policy. Our analysis also shows the large differences in net carbon prices across countries and across sectors within countries. Net carbon prices should replace fossil fuel subsidies in the policy debates and become the basis for national energy tax reforms and international agreements on minimum carbon prices.
Topic:
Climate Change, Energy Policy, Environment, Natural Resources, and Fossil Fuels
Political Geography:
Global Focus

26. How Can Anticorruption Actors Use EITI Disclosures?

Author:
Sebastian Sahla, Alexandra Gillies, and Matthieu Salomon
Publication Date:
02-2021
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Corruption in the extractive industries represents one of the main obstacles to ensuring that natural resources contribute to sustainable development. The heightened corruption risks across the sector are well documented, with many of the most prominent global corruption cases in recent years involving actors in oil, gas and mining. High-profile corruption scandals have occurred in several EITI countries. In Colombia, a former EITI supporting company has faced investigations over alleged illegal political campaign financing. Two large oil companies and their executives face criminal trial in Italy over a controversial oil deal in Nigeria. In Iraq, a “fixer” company bribed officials to help its clients secure oil industry contracts. EITI reports are silent on these and many other alleged cases of corruption. This has raised critical questions, particularly among civil society actors and academics, about the relevance of EITI in addressing the sector’s most pressing challenges. Although EITI reports rarely speak directly about corruption, they are nevertheless an important resource for anticorruption actors. As the EITI considers how it can more effectively play a role in addressing corruption, the authors of this report aim to shed light on how EITI’s current reporting can help oversight actors understand and address corruption risks. The authors identify best practices in how EITI countries disclose corruption-related information, highlighting the strengths and weaknesses of the initiative and providing insights that can help EITI maximize its relevance to future anticorruption efforts. Based on a review of EITI documents from 17 countries, the authors identify trends in how reporting presents corruption-related information.
Topic:
Corruption, Development, Oil, Natural Resources, Gas, and Industry
Political Geography:
Global Focus

27. Diagnosing Corruption in the Extractive Sector: A Tool for Research and Action

Author:
Alexandra Gillies, Sebastian Sahla, Matthieu Salomon, and Tom Shipley
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
NRGI’s corruption diagnostic tool aims to support anticorruption actors as they tackle the complex and sensitive challenge of extractive sector corruption. Drawing on extensive sector-specific analysis, the tool enables its users to: Gather evidence and convene consultations to identify the forms of corruption most likely to negatively impact their country’s extractive industries; Diagnose the causes of these forms of corruption; Build an evidence-based anticorruption action plan, focused on preventing future corruption. The tool prioritizes multi-stakeholder participation, and its flexible approach allows users to adapt the content and process to meet their needs.
Topic:
Corruption, Natural Resources, Regulation, and Industry
Political Geography:
Global Focus

28. Recommendations for Strengthening the Role of the EITI in the Fight Against Corruption

Author:
Sebastian Sahla and Matthieu Salomon
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Corruption in the extractive industries is one of the biggest obstacles to the accountable and sustainable management of natural resources. While EITI has the potential to contribute toward the fight against corruption, the initiative is falling short in realizing this potential in many countries. NRGI’s new memo details recommendations for EITI to strengthen its relevance for anticorruption efforts. This memo builds on a review of EITI disclosures from around the world conducted by NRGI, the findings of which are summarized in a February 2021 report titled How Can Anticorruption Actors Use EITI Disclosures?.
Topic:
Corruption, Natural Resources, Sustainability, and Industry
Political Geography:
Global Focus

29. National Oil Companies and Climate Change: Insights for Advocates

Author:
Patrick Heller, Greg Muttitt, Alexandra Gillies, Paasha Mahdavi, David Manley, Valerie Marcel, Joachim Roth, Lourdes Melgar, Francisco J. Monaldi, and Angelo Picciariello
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
National oil companies are the “hidden half” of the global oil industry. The authors of this briefing write that climate and development advocates who seek to reduce fossil fuel supply and promote sustainable economies must engage with these state-owned companies, many of which are based in countries with high levels of poverty.
Topic:
Climate Change, Energy Policy, Oil, Natural Resources, and State-Owned Enterprises
Political Geography:
Global Focus

30. Corporate influence and the global pandemic – reflections from the mining sector

Author:
Bonnie Campbell
Publication Date:
11-2021
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Instituto Brasileiro de Relações Internacionais (IBRI)
Abstract:
Power asymmetries offer a lens for understanding the reshaping of corporate strategies in the mining sector during the pandemic. Using a heterodox international political economy perspective, the first section of the article argues that regulatory frameworks are both the expression of structural power relations and a key instrument contributing to their reproduction. The second illustrates this by focusing on companies’ attempts to renegotiate fiscal concessions and keep mines open during the pandemic. The third examines how corporate actors have become directly involved in the delivery of health services and longer-term implications of such involvement. The conclusion identifies further research areas.
Topic:
Natural Resources, Mining, Corporations, and Influence
Political Geography:
Global Focus