The energy transition is a global shift away from fossil fuels to renewable sources of energy, contributing to the wider transition to a decarbonised economy by mid-century. It is underpinned by a collective global commitment to keep global warming below 2˚C in line with the Paris Agreement and nationally determined contributions (NDCs).
The global shift envisaged through the transition will require a transformation of the extractive industries and will expose producer countries to new risks and opportunities. As global consumption of fossil fuels declines, countries that rely on revenues from petroleum and coal will have to contend with a decline in sectoral revenue. For mineral producers, the scaling of renewable energy and clean technologies will result in increased demand for commodities such as cobalt, lithium and copper, and a potential surge in investment.
Preparing for these rapid changes in demand will require data which can be used in forward-looking analysis, underpin dialogue on policy responses and inform public debate. The EITI Standard provides a framework for disclosure and stakeholder engagement as a foundation for accountability and good governance.
This brief explores how the EITI can support resource-rich countries in addressing the economic implications of the energy transition. Analysis of data reported through the EITI – such as fossil fuel production and transportation revenues, social expenditures and environmental impacts – can help governments and citizens forecast how their economies may be impacted in the coming decades. EITI data-driven forecasting can provide evidence for policymakers to manage risks and leverage opportunities of the energy transition.