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1. When the Earth Loses its Stewards

Author:
Alexia Gardner and Alex Reep
Publication Date:
04-2024
Content Type:
Commentary and Analysis
Institution:
The North American Congress on Latin America (NACLA)
Abstract:
More than 1 million Colombians have been forced to flee their territories since the 2016 peace accords. As extractive industries and armed groups capitalize on displacement, biodiversity suffers.
Topic:
Treaties and Agreements, Armed Forces, Displacement, Biodiversity, and Extractive Industries
Political Geography:
Colombia, South America, and Latin America

2. Challenges and Recommendations for the Amazon through the voices of women defenders of human rights and the environment: Colombia

Author:
Renata Avelar Giannini, Katherine Aguirre, and Caitlin Wiley
Publication Date:
05-2024
Content Type:
Special Report
Institution:
Igarapé Institute
Abstract:
In the Colombian Amazon, women defenders play a crucial role in combating climate change by protecting their territories and communities. Given that Colombia ranks among the most dangerous countries for environmental and human rights activists, these women confront numerous risks. The conflicts mainly focus around access to, evaluation, distribution, management, and use of natural resources. This study shares their personal experiences, challenges, and achievements, and details their interactions with various actors — including government bodies, mining and fossil fuel companies, as well as the extractive and agribusiness sectors. Their mission is dedicated to safeguarding the Colombian Amazon biome, which is currently the site of 27 major environmental conflicts, as reported by the Sinchi Institute of Scientific Research of the Amazon. This report seeks to amplify the voices of Colombian defenders, whose efforts to protect the Amazon biome are often overlooked and receive limited social and economic support.
Topic:
Climate Change, Environment, Human Rights, Natural Resources, Women, Conflict, Activism, Extractive Industries, Biometrics, and Amazon Rainforest
Political Geography:
Colombia, South America, and Amazon Basin

3. Fiscal dependence on extractive revenues: Measurement and concepts

Author:
Kyle McNabb
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The aims of this paper are twofold. It firstly identifies and discusses the extent to which public revenues from natural resources are adequately captured in existing cross-country revenue databases, before exploring the extent to which such data can be used to estimate countries’ fiscal dependence on extractives. I first discuss key conceptual, definitional and measurement issues, before comparing the coverage of key existing databases, notably the UNU-WIDER Government Revenue Dataset (GRD). I then propose a new measure of fiscal dependence on extractive revenues (FDE). Whilst a number of existing studies have attempted to better quantify countries’ resource dependence, to the best of my knowledge none has yet proposed an indicator that ties the idea of dependence to any outcomes. The FDE simply calculates the extent to which extractive-producing countries can fund day-to-day government spending with non-extractive revenues. I find that the FDE is strongly correlated with existing measures of extractive dependence but can ultimately tell us more about countries’ fiscal positions and resulting vulnerability to shocks to revenue or government spending.
Topic:
Natural Resources, Tax Systems, Extractive Industries, and Economic Dependence
Political Geography:
Africa, South Asia, and India

4. 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

5. Brazil’s critical and strategic minerals in a changing world

Author:
Nicholas Pope, Peter Smith, Rodrigo Werneck, Andreia Bonzo Araújo Azevedo, and Ilona Szabo de Carvalho
Publication Date:
10-2023
Content Type:
Special Report
Institution:
Igarapé Institute
Abstract:
Featuring a diversified supply of strategic minerals – raw materials in demand for the transition to green energy – Brazil is witnessing a growing demand for crucial minerals in a decarbonized world. The country holds 94% of the world’s niobium reserves, 22% of graphite, 16% of nickel, and, as well as accounting for 17% of rare earths, the third largest deposit on the planet. With 30% of these mineral reserves located in the Legal Amazon, Brazil has the potential to strategically position itself as a responsible and trusted partner in the global strategic minerals market, both to boost its portfolio and protect its biome and the communities living within it. This study suggests the country can leverage this potential to set global social and environmental standards in the market. However, it indicates that Brazil’s strategic minerals’ role in the energy transition remains unclear, with an undefined strategy for global market integration. Moreover, there is a pressing need for widespread social consensus on the importance of environmental and cultural protection in this context. The study aims to provide insights for discussions on the country’s natural resource management and establish commitments for a fair, coherent, and sustainable energy and environmental policy. To this end, the report offers a comprehensive overview of the scope, scale, and distribution of strategic minerals in Brazil and the rules and regulations governing access to these minerals. It examines the key players and companies involved in the country’s mineral extraction and discusses the implications for some of Brazil’s main biomes, especially the Amazon.
Topic:
Climate Change, Natural Resources, Minerals, Resource Management, Extractive Industries, Green Transition, and Raw Materials
Political Geography:
Brazil, South America, and Amazon Basin

6. 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

7. 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

8. Optimizing the Role of the Extractive Industries in Domestic Revenue Mobilization: Analysis of Uganda's Mining, Oil, and Gas Revenue Generation and Management Laws

Author:
Dan Ngabirano and Onesmus Mugyenyi
Publication Date:
12-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
Dwindling aid and more recently the devastating effects of the COVID-19 global pandemic have rendered many African countries socially, politically, and economically vulnerable. Many are unable to effectively provide basic goods and services for their people, and their ability to pursue long-term development goals has been severely undermined. Given this situation, several African governments continue to fall behind in honouring their global commitments such as those made under the UN Sustainable Development Goals (SDGs) and the various regional and international human rights treaties that they are party to. To bridge the current funding gap, several African countries have turned to extensive borrowing with even more damaging consequences. In the face of this crisis, African countries have been urged to embrace and, in some instances, enhance their domestic revenue mobilization efforts as a more reliable and sustainable option. Uganda has heeded this call and in 2019, the country adopted a five-year Domestic Revenue Mobilization Strategy (DRMS). The key objective of this strategy is to improve revenue collection and lift the country’s tax-to-GDP ratio to between 16%-18%. More critically, DRMS recognizes the strategic role and potential contribution of oil, gas, and mineral revenues to national development. The DRMS underlines the need for the development of a strong extractive industries taxation fiscal regime. Given this reality, this study was conceived and set out to review and analyze the various laws, policies, and practices relevant to Uganda’s extractive industries fiscal regime, and to establish the extent to which these may enhance revenue generation, management, and equitable sharing of resource wealth. While focused on petroleum revenue generation, management and sharing in the Albertine region districts of Hoima, Buliisa and Kikuube, the study refers to experiences from gold mining in Mubende district. In this regard, the study established that gold mining in the district has for the most part been informal and unregulated. For this reason, both the central government and Mubende district local government have not been very successful in generating critical revenues from the largely artisanal and small-scale miners-dominated sector. Secondly, where revenue has been realized from gold mining in a few instances, it has been paid to the central government with less benefit to the district local government.
Topic:
Oil, Gas, Mining, Revenue Management, and Extractive Industries
Political Geography:
Uganda and Africa

9. Tax provisioning by extractive industry multinational subsidiaries

Author:
Khanindra Ch. Das
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Extractive industries are spread across mining of metal and minerals, oil and gas, among others. Multinationals in these sectors are confronted with different challenges ranging from corruption, political risk, economic uncertainty, sunk costs, and the long-gestation periods to execute projects. As a result, tax payment behaviour of subsidiaries in the extractive sector could be dependent not only on these factors, but also on the life cycle of the subsidiary, profitability, and holding structure. Furthermore, emerging economy multinationals in the extractive industries could be state-owned and may invest in foreign subsidiaries for strategic reasons. We examine tax provision in host countries by India’s multinational subsidiaries in the extractive industry. Panel data analysis is carried out for the period 2010–20. It is found that tax provision remains lower in the initial years of subsidiary life and increases with the sustenance of subsidiary in the host country for a longer period. In addition, subsidiaries of public sector enterprises are found to have higher tax provisions than their private counterparts. When it comes to the determinants, economic policy uncertainty, corruption, and political stability are found to significantly affect tax provision.
Topic:
Corruption, Political stability, Multinational Corporations, Tax Systems, Economic Policy, Public Sector, Extractive Industries, and Uncertainty
Political Geography:
South Asia and India

10. Illicit financial flows and country-by-country reporting in extractive industries

Author:
Saila Stausholm, Petr Janský, and Marek Šedivý
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic data are important in governing the international political economy. Some of the most widely used macro statistics risk being undermined by systematic misalignment in reporting of economic activity due to illicit financial flows, as well as tax-minimizing financial transactions by multinational corporations. Measuring these misalignments may prove a way to correct old statistical standards, if adequate data can be obtained. We evaluate whether new transparency and reporting regimes that require country-by-country reporting by multinational corporations could prove a feasible way to appropriate the amount of tax avoidance and use these figures to correct macro statistics. We evaluate the existing data for two of the standards through previous literature and provide original analysis of a third standard that is applied to the extractive industries. We find that the standards lack coherence and workability, and that particularly the extractive industry standard falls short of enabling thorough research on profit reporting and taxmotivated misalignments by multinational corporations.
Topic:
Economics, Tax Evasion, Extractive Industries, and Illicit Financial Flows
Political Geography:
Global Focus