Why reform is needed
Experience in a number of countries globally has shown that the adoption of modern strategies, policies and laws to regulate, together with the strengthening of policymaking and regulatory institutions are key steps in the successful attraction of investment and development of a responsible extractives sector. Given these successes, investors have come to expect clear and non-discretionary regulatory frameworks to govern activities and protect the interests of the state, its citizens and investors. Consequently, where countries lack such a framework they face investors viewing them as excessively risky, leading them to direct their investment elsewhere. Similarly, without modern laws, robust legal and regulatory frameworks, adequate transparency and capable institutions accountability for decisions will be lacking, risking the squandering of substantial benefits that can flow from responsible exploitation of extractives.
The LTP's role
Working across stakeholder groups (government, regulators, operators and investors and civil society), EBRD actively helps develop and modernise extractive sector policies, establish and enhance legal and regulatory frameworks, and build and strengthen the institutions responsible for implementation and enforcement of policy, law and regulation. We provide support on policy, law and regulation relating to diverse aspects of the extractives sector, among which are: governance; institutional arrangements and legislative frameworks; award of rights and licensing; geodata management; taxation and revenue management; transparency; investment protection; land access and use; labour practices; mine safety and worker health; environmental monitoring and reporting; remediation, closure and rehabilitation; legacy environmental impacts; social and cultural safeguards; social protection and benefits sharing; community consultation and public information; community-based conflict mitigation and dispute resolution; security; value addition and extractive-related development.
EBRD support comes in two main forms: (i) policy dialogue activities, through which we engage with policymakers and regulatory authorities to advocate for the adoption of policy approaches, the implementation of corresponding rules and practices, and the establishment or strengthening of accompanying institutions that drive effective and responsible development of the extractives sector; and, (ii) where that advocacy is successful, we lead technical assistance projects which support practical implementation and application of those policy, legal and institutional frameworks.
Extractive Industries Transparency Initiative (EITI)
EBRD endorses and supports implementation of the EITI Standard. EITI is a global transparency initiative in the extractive industry involving regular publication of all material oil, gas and mining revenues (and related contextual information, such as beneficial ownership) to a wide audience in a publicly accessible, comprehensive and comprehensible manner. For more information on EITI, see www.eiti.org.