The Board approved the funding review and agreed to revisit the issue upon clarification of supporting countries’ position at its 36th meeting.
Description: The Board approved the funding review's recommendations in Board paper 35-9-B (Funding Review 2016) and agreed to revisit the issue upon clarification of supporting countries’ position at its 36th meeting.
The recommendations were prepared by the Finance Committee.
The financial contributions of all contributors are published clearly on the EITI website.
Grouped contributions over multi-year periods are accepted/welcomed.
From 2017, implementing countries are required to make a financial contribution of USD 10K to the EITI International Management on an annual basis to cover the costs of their Validation. This figure is subject to revision in subsequent years as the International Secretariat experiences the real costs of Validation.
In addition, each implementing country is invited to make a supplementary contribution that goes toward the costs of technical assistance provided by the International Secretariat. It is important to note that the technical assistance provided to an implementing country would not be dependent on this additional contribution.
It is suggested that the effectiveness of the above process would be assessed after the first year in order to consider whether there should subsequently be implications and consequences for an implementing country that fails to make a contribution.
For some time, supporting countries have discussed possible approaches regarding an annual minimum contribution, but these discussions have not led to consensus. Supporting countries will continue to discuss different approaches moving forward.
To be considered a supporting company, a company has to make a minimum contribution (USD 20,000, USD 40,000 and USD 60,000 for the oil and gas sub-constituency depending on market capitalisation, and USD15,000 for the mining sub-constituency) and encouraged to make greater contributions.
Each company has a year to put this into effect (ie. by 2018), following which a list of companies declaring support without funding will be made available to the EITI Board and those companies will be requested to pay or amend their communications and will no longer be listed as supporters on the EITI website.
The constituency confirms the following principles:
- No representation without taxation’ – no company can call themselves an EITI supporter on their website, or in any external communications unless they make a minimum contribution; only companies that pay the minimum (oil and gas) or recommended (mining) may put themselves forward for a Board position;
- The contribution to be required, not voluntary, for all EITI supporters;
- The contribution to be made annually;
- The contribution to be tiered according to company size.
- Grouped contributions, like ICMM, to be considered on a case by case basis.
The contribution tiers are (minimum for oil and gas, recommended for mining)*:
- Market cap >USD 10bn: USD 60,000
- Market cap USD 5 - 10bn: USD 40,000
- Market cap <USD 5bn: USD 20,000 for oil and gas or USD 15,000 for mining companies
Some companies may wish to make bigger contributions or additional contributions to support specific projects. All contributions will be published on the EITI website.
*Contribution tiers are updated to reflect the industry constituency consultations. The previous reference provided in BP-35-9-B did not reflect the industry agreement and is therefore revised here following the confirmation of industry representatives at the EITI Board. Please contact the Secretariat if you have any follow-up questions.
Institutional Investors/Financial institutions
This subconstituency is still considering a proposal that support would require:
- Making a statement of support for the EITI Principles publicly available on its website.
- Making an annual financial contribution to the international management of the EITI of at least USD 9,950.
- Participating in the sub-constituency of the Board through regular meetings with the Board representative.
Civil society organisations make a very valuable contribution in the process of EITI implementation in different parts of the world. This contribution often takes the form of direct participation of civil society representatives in a particular country.
Taking into account that civil society organizations are not profitable structures, as well as taking into account the contribution which they make for promotion of the EITI all over the world, the EITI Board considers it inappropriate to demand a fee from not profit organisations. However, this approach does not exclude the possibility of making some payments to the EITI International Secretariat on a voluntary basis.
Based on: Article 12, Articles of Association
Keywords: EITI Governance, funding