The Extractive Industries Transparency Initiative (EITI) has introduced its updated 2023 Standard, which includes significant revisions aimed at addressing corruption risks and facilitating the global energy transition. The EITI Board has agreed on these revisions, which will be officially launched at the EITI’s upcoming Global Conference in Dakar, Senegal, on June 13.
The 2023 EITI Standard will replace the 2019 Standard. It is said to incorporate enhanced requirements that strengthen disclosures and governance, for a greater understanding of the energy transition’s impact. Additionally, it seeks to promote gender equity, improve revenue collection, and tackle corruption.
EITI said the process of refining the 2023 EITI Standard involved wide consultation and drew upon lessons learned from a decade of implementation.
“The global shift towards a low-carbon economy will have a range of impacts on the citizens of resource-rich countries,” said Helen Clark, EITI Board Chair. “A strength of the EITI has been to adapt to current and evolving challenges. Those associated with the energy transition are now reflected in the EITI Standard.”
One of the key areas of focus in the revised EITI Standard is the introduction of new disclosure requirements related to the energy transition. These requirements include commitments, policies, and plans pertaining to the transition, as well as information on capital and operating expenditure costs, carbon pricing mechanisms, carbon taxes, greenhouse gas emissions, and subsidies. By demanding documentation of the rationale for fast-tracking extractive licenses, EITI said the new Standard also strengthens safeguards in license allocation, particularly as the demand for minerals required for the energy transition continues to grow.
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A significant addition to the EITI Standard also is the explicit integration of anti-corruption provisions into its objectives. All companies supporting the EITI and participating in EITI reporting, including state-owned enterprises, will now be expected to disclose their anti-corruption policies. Furthermore, the revised EITI Standard encourages the disclosure of the identities of individuals who own or control companies, particularly through a minimum ownership threshold. It also clarifies beneficial ownership disclosures for state-owned enterprises.
EITI said such disclosures play a vital role in identifying conflicts of interest and politically engaged individuals in the sector.
The revisions are also said to extend gender-disaggregated disclosures to employment and benefits within the extractive sector, expanding the scope of disclosures related to environmental and social monitoring, impact assessments, and community consultations.
The revised EITI Standard seeks to develop a leaner approach to reporting revenues and payments, EITI said. Drawing on lessons learned from adapting EITI reporting during the COVID-19 pandemic, this streamlined approach aims to manage reporting costs effectively while maintaining transparency and accountability.
Guyana’s membership with the EITI is currently suspended.