Importance of a transparent and accountable framework for extraction –

getting it right from startCopenhagen 14 May 2014

Coming from - EITI Origins – Breaking the Resource Trap

The EITI is a global standard for disclosing company payments and government revenues in the extractive sector.

The EITI Standard has two core elements:

The EITI Standard has two core elements:

The EITI Standard ensures transparency and accountability in more areas of the natural resource value chain.

A national multi-stakeholder group (government, companies and civil society) decides how their EITI process should work.

Government revenues and company payments are disclosed together with contextual information and independently assessed in an EITI Report.

The findings are communicated to create public awareness and debate about how the country should better manage their resources.

Production data(required)

Transfers to local government(required)

Transit payments(encouraged)

State -owned Enterprises

(required)

Government publish receipts

Companies publish payments

Licenses & contracts

Monitoring production Tax collection Revenue

allocationExpenditure

management

Licensing information(required)

State Ownership(required)Production

contracts(encouraged)

Beneficial ownership(encouraged)

Company social and infrastructure investments(required)

In Nigeria they are using the EITI numbers to reveal missing payments and create debate about how the country’s resources are governed. US $10 billion identified as owed by the national oil company and US $2 billion recovered.

License holders, Norway

Contract disclosure, Liberia

Contextual information, Kyrgyzstan Production Data

Legal framework, Albania

Production data, Tanzania

• In countries with extraction is largely new, such as Ghana, it mitigates corruption, contributes to long-term planning and the managing of expectations.

• In post conflict environments, such as Liberia and Timor-Leste, EITI has been useful in building trust and attracting quality foreign direct investment.

• In large countries with complex sectors, such as Nigeria, DRC and Kazakhstan, EITI has been useful in finding out who is doing what and in tracking the money.

• In countries with weak institutional environments, such as Chad, the process of producing the Report has been diagnostic.

 • In countries with strong and well-functioning

institutions, such as Norway, EITI can facilitate access to information in a simple and comprehensive format.

Why transparency

In Indonesia, the EITI report looks at how the natural resources could be used to address the challenges of corruption and social spending.

Building trust for national energy and resource governance

44 Countries18

Compliant 26

Candidates

>$1000Billions

400 around the world working full time. 900 serve on EITI national commissions

198

Fiscal years

Update: 1 Nov 2012

EITI reports

120

EITI key stats

Civil society organisations

The EITI supporters

International organisationsExtractive companies

Recently Australia*, Colombia, Ethiopia, France, Germany*, Italy, Papua New Guinea, the UK and the US have taken steps towards implementing the EITI.

*Australia is conducting an EITI pilot, Germany has committed to a pilot.

Key Features of EITI• Country ownership - shape the EITI

as appropriate in each country.• Annual reporting – both for

companies and for government.• Make use of the data to answer

the key questions facing the country and create public debate.

• Multi-stakeholder governance at all levels.

Key Features of EITI• Country ownership - shape the EITI

as appropriate in each country.• Annual reporting – both for

companies and for government.• Make use of the data to answer

the key questions facing the country and create public debate.

• Multi-stakeholder governance at all levels.

Through implementing the global EITI transparency Standard, countries ensure more transparency of revenues from its oil, gas and mineral resources.

The EITI Standard ensures transparency and accountability in more areas of the natural resource value chain.

A national multi-stakeholder group (government, companies and civil society) decides how their EITI process should work.

Government revenues and company payments are disclosed together with contextual information and independently assessed in an EITI Report.

The findings are communicated to create public awareness and debate about how the country should better manage their resources.

Production data(required)

Transfers to local government(required)

Transit payments(encouraged)

State -owned Enterprises

(required)

Government publish receipts

Companies publish payments

Licenses & contracts

Monitoring production Tax collection Revenue

allocationExpenditure

management

Licensing information(required)

State Ownership(required)Production

contracts(encouraged)

Beneficial ownership(encouraged)

Company social and infrastructure investments(required)

Jonas Moberg, Head of the International SecretariatJonas.moberg@eiti.org