The EITI Requirements

On 22 May 2013, the EITI Board agreed the revised EITI Standard. The requirements set out below are the requirements that implementing countries have to comply with in accordance with the EITI Standard. The EITI Board is expected to agree the procedures for countries to transition to implementation of the EITI Standard shortly. A number of implementing countries will complete ongoing EITI Reports and Validations in accordance with the 2011 EITI Rules. For further information about the requirements of the 2011 EITI Rules, please see this page.

In order to apply for EITI candidature

A country intending to implement the EITI is required to undertake a number of steps before applying to become an EITI Candidate:

1.1          The government is required to issue an unequivocal public statement of its intention to   implement the EITI.

1.2          The government is required to appoint a senior individual to lead on the implementation of the EITI.

1.3          The government is required to commit to work with civil society and companies, and establish a multi-stakeholder group to oversee the implementation of the EITI.

1.4          The multi-stakeholder group is required to maintain a current workplan, fully costed and aligned with the reporting and Validation deadlines established by the EITI Board.

When the country has completed these steps and wishes to be recognised as an EITI Candidate, the government should submit an EITI Candidate Application [link to revised application form] to the EITI Board.  For further information, please consult the guidance note on how to become an EITI Candidate country.

Implementation requirements

The requirements are set out in full in chapter 2 of the EITI Standard.

1. The EITI requires effective oversight by the multi-stakeholder group.

The EITI requires effective multi-stakeholder oversight, including a functioning multi-stakeholder group that involves the government, companies, and the full, independent, active and effective participation of civil society. The key elements of this requirement include: (1.1) government commitment; (1.2) government oversight; (1.3) the establishment of a multi-stakeholder group; and (1.4) an agreed workplan with clear objectives for EITI implementation, and a timetable that is aligned with the deadlines established by the EITI Board (1.6-1.8).

2. The EITI requires timely publication of EITI Reports.

EITI Reports are most useful and relevant when published regularly and contain timely data. Requirement 2 establishes deadlines for timely EITI Reporting.

3. The EITI requires EITI Reports that include contextual information about the extractive industries.

In order for EITI Reports to be comprehensible and useful to the public, they must be accompanied by publicly available contextual information about the extractive industries. This information should include a summary description of the legal framework and fiscal regime (3.2); together with an overview of: the extractive industries (3.3); the extractive industries’ contribution to the economy (3.4); production data (3.5); state participation in the extractive industries (3.6); revenue allocations and the sustainability of revenues (3.7 -3.8), license registers and license allocations (3.9-3.10); and, any applicable provisions related to beneficial ownership (3.11) and contracts (3.12). The multi-stakeholder group should agree on who prepares the contextual information for the EITI Report (3.1).

4. The EITI requires the production of comprehensive EITI Reports that include full government disclosure of extractive industry revenues, and disclosure of all material payments to government by oil, gas and mining companies.

An understanding of company payments and government revenues can inform public debate about the governance of the extractive industries. The EITI requires a comprehensive reconciliation of company payments and government revenues from the extractive industries. Requirement 4 outlines the steps that the multi-stakeholder group needs to consider in order to ensure that the EITI Report provides a complete account of these payments and revenues. Section 4.1 sets out the requirements related to the types of payments and revenues to be covered in the EITI Report. Section 4.2 specifies which companies and government entities, including state-owned enterprises, should be required to report.

5. The EITI requires a credible assurance process applying international standards.

Requirement 5 seeks to ensure a credible EITI reporting process so that the EITI Report contains reliable data. The EITI seeks to build on existing audit and assurance systems in government and industry and to promote adherence to international practice and standards. The multi-stakeholder group is required to appoint an Independent Administrator to reconcile the data submitted by companies and government entities (5.1). Section 5.2 outlines the issues that the multi-stakeholder group and the Independent Administrator need to consider in agreeing the terms of reference for the reconciliation. This includes the assurances that need to be provided by the reporting entities. Section 5.3 empowers the Independent Administrator to assess the comprehensiveness and reliability of the data and to make recommendations for the future. The EITI Report must be endorsed by the multi-stakeholder group (5.4).

6. The EITI requires EITI Reports that are comprehensible, actively promoted, publicly accessible, and contribute to public debate.

Regular disclosure of natural resource revenue streams and payments from extractive companies is of little practical use without public awareness, understanding of what the figures mean, and public debate about how resource revenues can be used effectively. Requirement 6 ensures that stakeholders are engaged in dialogue about natural resource revenue management.

7. The EITI requires that the multi-stakeholder group takes steps to act on lessons learned and review the outcomes and impact of EITI implementation.

EITI Reports lead to the fulfilment of the EITI Principles by contributing to wider public debate. It is also vital that lessons learnt during implementation are acted upon, that discrepancies identified in EITI Reports are explained and, if necessary, addressed, and that EITI implementation is on a stable, sustainable footing.

Download the EITI Standard