The Board agreed clarifications of the assessment of EITI sign-up steps.

The Board agreed a framework for assessing candidature applications and provided clarity to outreach countries on the sign-up requirements at its 47th meeting on 17 June 2020.

The 2019 EITI Standard states:

“A country intending to implement the EITI is required to undertake a number of steps before applying to become an EITI country. These steps relate to government commitment (1.1), company engagement (1.2), civil society engagement (1.3), the establishment of a multi-stakeholder group (1.4) and agreement on an EITI work plan (1.5).

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When the country has completed the sign‑up steps and wishes to be recognised as an EITI implementing country, the government should submit an EITI Application, endorsed by the multi‑stakeholder group. The application should describe the activities undertaken to date and provide evidence demonstrating that each of the sign‑up steps have been completed. The application should include contact details for government, civil society and private sector stakeholders involved in the EITI.

Once submitted, the application will be made publicly available on the EITI website. The EITI Board will review the application and assess whether the sign‑up steps have been completed. The International Secretariat will work closely with the senior individual appointed by the government to lead on EITI implementation in order to clarify any outstanding issues. Based on this and any other available information, the EITI Board’s Outreach and Candidature Committee will make a recommendation, within a reasonable time period, to the EITI Board on whether a country’s application should be accepted. The EITI Board will make the final decision.

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Countries preparing to join the EITI are encouraged to identify potential barriers to systematic disclosures from the outset, for instance by conducting a systematic disclosure feasibility study or addressing opportunities for systematic disclosures as part of the preparations for becoming an EITI implementing country.”

The EITI Standard does not specify how the Board assesses whether the sign-up steps related to Requirements 1.1-1.5 have been completed, although the practice to date has been to follow a process broadly similar to the Validation of those requirements. The full text of Requirements 1.1-1.5 is available in the 2019 EITI Standard.

In practice, the assessment of Requirements 1.1-1.5 at sign-up stage has been lighter than in Validation. Candidature assessments have principally drawn from evidence presented in the candidature application and publicly available sources, while Validation involves more extensive stakeholder consultations. Validation also requires considerable financial resources and time, while the Board “aims to process applications within eight weeks”.

The difference in procedure reflects the expectation that extensive evidence of adherence to the requirements is only available after a period of implementation. Candidature assessments are principally concerned with stakeholder engagement during the preparations for EITI implementation and consider whether there is an enabling environment for industry and civil society engagement. Validation examines a longer period and looks for more substantial evidence of effective stakeholder engagement in the EITI and MSG oversight of implementation. The EITI’s civil society protocol notes the following: “While the provisions relating to civil society participation in the EITI process remain consistent at every stage of EITI implementation, the evidence the EITI Board uses to evaluate the provisions will of necessity vary depending on the circumstances of the country, stage of implementation, and availability of information.”

This paper proposes a framework for assessing candidature applications and seeks to provide clarity to outreach countries on the sign-up requirements.