Mining, oil and gas operations have substantial environmental impacts. These impacts are largely regulated by environmental protection agencies, who enforce national legislation and regulations.
Environmental payments can be substantial. Reporting from 14 EITI countries resulted in the estimated disclosure of over USD 0.5bn in mandatory environmental payments for 2018. Environmental taxes may be higher, depending on each country’s taxation regime. For example, EITI disclosures since 1999 have covered an estimated US10.5 bn in environmental taxes, with US9 bn of these tax payments relating to two implementing countries – Kazakhstan and Norway.
The environmental impact of the extractive industries is often a focal point of public debate. Environmental disclosures can raise awareness among affected communities, stimulate debate and promote responsible natural resource management.
In addition to knowing that there is regulatory compliance, stakeholders and the public may wish to access information on the environmental impact of operations and on any payments made by companies to comply with laws, regulations or contracts.