Further to the publication of the report on Transparency in Transition: Climate Change, Energy Transition and the EITI, the EITI International Board agreed the following next steps:
Advance country-level analysis on the economic implications of energy transition and build a use case for EITI data in the energy transition.
Build capacity of MSGs to engage in informed debate on the risks and opportunities associated with transition.
Consider how to mainstream transparency on energy transition through the EITI Standard and guidance.
Engage the industry and institutional investor constituencies in discussions on industry trends and how energy transition may affect extractives transparency.
EITI Principle 4 recognises that “a public understanding of government revenues and expenditure over time could help public debate and inform choice of appropriate and realistic options for sustainable development.” The transition to a sustainable, decarbonised economy is now reshaping the extractive industries. It will have profound implications for the kinds of data, disclosures and dialogues that will be required to support accountability and good governance in implementing countries. Transparency is also central to international efforts to support the energy transition, including the reporting of emissions and the disclosure of climate risks. For the
EITI processes in the 53 implementing countries to be able to effectively inform policy and decision making related to natural resource governance in the future, these broader trends will have to be considered by EITI stakeholders and MSGs.
In 2019, the International Secretariat commissioned a paper from Chatham House to help stakeholders consider the implications of the energy transition for the EITI. A workshop brought together experts and practitioners in January 2020, and a draft paper was presented to the Board at its strategy retreat in February. The paper was published in June and explores the implications of the energy transition for countries implementing the EITI. It reviews potential policy and practical responses open to the EITI in light of the transition and makes a set of recommendations for the EITI, including mainstreaming energy transition and climate risk data and dialogue in the EITI Standard, implementation and guidance. It also calls for increased dialogue on the issue among EITI national and international stakeholders.