The Board agreed that Germany has made satisfactory progress overall in implementing the 2016 EITI Standard.

Keywords: Validation
Country: Germany

The Board's decision

The Board agreed that Germany has made satisfactory progress in implementing the 2016 EITI Standard. EITI implementation in Germany has improved the availability of information and strengthened dialogue between stakeholders.

The EITI Board commended Germany’s efforts to increase the relevance of EITI implementation by addressing environmental aspects, subsidies and renewable energy. Government, civil society and industry are working together to ensure meaningful implementation proportionate to economic importance of the domestic extractive industries.

The Board recognised Germany’s efforts to overcome challenges to implementation posed by the federal system and legal constraints relating to tax confidentiality. The coordination between the federal and state-level governments is commendable. The Board encouraged Germany to ensure that the minor gapsin publicly available licensing information are addressed, and that further efforts are made to ensure that licensing information is made available online.

The Board encouraged the MSG to undertake further efforts to consider a mainstreamed approach to implementation and to ensure that implementation is proportionate considering the size of the sector and stakeholder interest. Germany may wish to seek further synergies between mandatory company disclosures and EITI implementation. The government is encouraged to regularly monitor compliance with the mandatory disclosure regime and disclose results. There is potential for the EITI to contribute to ensuring that mandatory payment reports and beneficial ownership data are accessible and user-friendly. Germany is required to ensure that beneficial ownership data is made publicly available by 1 January 2020.

The Board has determined that Germany will be re-Validated in three years, i.e. on 8 May 2022.

Assessment card

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Background

Germany became an EITI Candidate in February 2016 and has published one EITI Report, covering the year 2016. The report was published in August 2017 and updated in October 2018. On 4 September 2018, the Board approved Germany’s request for early Validation. The Validation process commenced on 1 November 2018. In accordance with the Validation procedures, an initial assessment [English] was prepared by the International Secretariat. The MSG submitted comments to the initial assessment and the draft Validation report [English | French] on 14 February. The Validation report was subsequently finalised by the Validator [English | French]. The Validation report did not take into account information disclosed subsequent to the commencement of Validation. In February and April 2019, the MSG published information addressing proposed corrective actions related to license allocations (2.2), license register (2.3), comprehensiveness (4.1) and transactions related to state-owned enterprises (4.5). The International Secretariat prepared a comparison table on the four requirements [English | French].

The Validation Committee reviewed the case on 10 April 2019. Based on the findings above, the Validation Committee agreed to recommend the assessment card and corrective actions outlined below.

The Committee agreed to recommend an overall assessment of “satisfactory progress” in implementing the 2016 EITI Standard. Requirement 8.3.b. of the EITI Standard states that:

ii.    Overall assessments. Pursuant to the Validation Process, the EITI Board will make an assessment of overall compliance with all requirements in the EITI Standard.    

iv.   Where Validation verifies that a country has made satisfactory progress on all of the requirements, the EITI Board will designate that country as EITI compliant.

EITI compliant countries must maintain adherence to the EITI Principles and Requirements in order to retain Compliant status.