Image by Pixabay
 

The EITI Board is considering how the EITI can play a role in the energy transition, which will reshape the extractive industries and economies. With governments under pressure to make informed, data-driven decisions, we break down some of the ways EITI reporting can contribute to energy policy.

Forecasting: Data on extractive revenues and production – which are likely to be affected by the energy transition – can be modelled to estimate future income and help set expectations. EITI data also sheds light on subsidies for fossil fuel consumption and can help drive sustainable policies on how revenues should be shared with local and regional governments.

State of play: A briefing by the Natural Resource Governance Institute outlines some of the major challenges of tackling the energy transition in resource-rich countries and the approaches needed to advance this agenda.   

Local communities should have a say in how their natural resources are managed, especially if they are directly impacted by extractive activities. Our latest research explores how to strengthen community participation in sector oversight.

From the ground up: Field studies in Colombia, Ghana and Indonesia provide key lessons for empowering communities to engage with extractives data, such as promoting innovative data-sharing tactics, diverse participation and regular touchpoints.

In the open: To build trust, communication is key. In countries where the COVID-19 pandemic is exacerbating restrictions to civic space, the EITI can help uphold the provisions of the Civil Society Protocol at the local level.

Image by EITI International Secretariat
 

Nigeria’s national oil company, NNPC, published its group-level financial report for the first time, revealing that the corporation reduced its loss from N803 billion in 2018 to N1.7 billion in 2019. Here’s what the numbers show, and why the disclosure matters.

Targeting transparency: Under Mele Kolo Kyari’s leadership, NNPC has undergone a number of reforms to bring about greater transparency and accountability. In publishing its financial statements, the corporation has made progress towards fulfilling its commitments as an EITI supporting company.

Photo by Pixabay
 

Afghanistan made meaningful progress in implementing the EITI Standard following its second Validation, thus lifting the country’s temporary suspension.

Breaking through: Afghanistan’s government has embraced open data platforms to enhance transparency of extractive sector management. The first-time audit of two Afghan state-owned companies – which accounted for almost two thirds of extractive revenues between 2008 and 2017 – also marks a significant breakthrough.

Quoted: Afghanistan’s President Ashraf Ghani noted that the EITI has been “instrumental in supporting our institution-building efforts in a sector critical to the economic future of Afghanistan.”

Photo by Pixabay
 

Honduras made meaningful progress in implementing the EITI Standard, with considerable improvements since its first Validation. However, due to inadequate civil society engagement, the country is temporarily suspended.
 
Better data: While Honduras has a small mining sector, the country has used the EITI to monitor production, exports and social payments from companies. In 2019, the Institute for Access to Public Information lifted secrecy provisions related to environmental information, an important step to shed more light on the environmental impact of extractive activities. The government also strengthened its licensing and cadastre systems, which help national and subnational governments track and ensure they collect the revenues that are due.
 
On the agenda: To lift its suspension, Honduras will need to promote more active public debate around extractive sector governance, as well as strengthen civil society participation in the EITI process. Providing accessible data, broken down by project, will be vital to spur dialogue and build trust among stakeholders and communities.

Photo by Alliance for Responsible Mining
 

The EITI and the Organisation for Economic Co-operation and Development (OECD) are joining hands to help maximise the economic contribution of artisanal and small-scale mining (ASM) in West Africa.

Digging deep: The ASM sector supplies an increasing share of the world’s commodities and employs more than 40 million people globally. But as the sector is mostly informal, monitoring the flow of revenues and economic impacts remains challenging. Transparency and due diligence are vital to ensure the sector is governed responsibly.

Synergy: A new report explores how the EITI and OECD can combine their frameworks, tools and resources to improve ASM governance in Burkina Faso, Mali and Niger. There are opportunities to collaborate more closely on reporting as well as community engagement and awareness.