TRANSPARENCY FOR AUSTRALIA’S RESOURCES

The Extractive Industries Transparency Initiative (EITI) is a global initiative to create transparency and accountability in the mining, oil, and gas industries. Its mission is to promote understanding of natural resource management, strengthen public and corporate governance and integrity.

The EITI standard provides the basis for reporting project information and other data needed to inform policymaking, and meaningfully engage communities, industry and investors in the extractives and energy sectors.

The EITI is a leading and credible global governance framework with a validation process. There are over 50 countries implementing the EITI Standard worldwide. Australia is currently not one of them. However, we have been a ‘supporting country’ since 2006. Over 20 Australian companies support the EITI Standard and already report internationally.

WHY WE SUPPORT THE EITIWith the energy transition leading to less fossil fuels use, and more critical minerals required for renewable energy projects and electrification, this is the time for more, not less, transparency, access to information inclusion, and accountability.

We are advocating for EITI implementation in Australia because it:

• focuses on open access to information, integrity, and meaningful participation of communities in decision making

• pushes for project disclosures to provide national and local communities with a clear picture of the value of the extractive industries and who benefits

• includes who pays and where taxes are paid, which can reduce use of shell companies

• is needed for transparency about Australia’s critical minerals and energy transition

• can help bring clarity about offshore oil and gas rig decommissioning and end of mine life costs, and what tax payers are going to have to pay for

• allows for ‘adapted implementation’ (countries can adapt implementation to suit their specific circumstances).

While the EITI provides a high level policy framework, every country’s multi-stakeholder group has autonomy and flexibility in shaping how the EITI Standard is implemented. The active participation of civil society in the EITI process is critical to ensure that transparency leads to greater public access to useful information and accountability.

WHY IT IS IMPORTANT TO US

It will help the public access information to answer the following questions:

• Who benefits from Australia’s natural resources and how?

• What are the social, economic, and environmental impacts of extractive projects?

• What is the plan for the energy transition in Australia, and how are communities being involved in decisions?

Australia has funded many related programs around transparency and good governance in other resource-rich countries. This is appreciated and important, but needs to be complemented by domestic implementation. The multi-stakeholder approach allows for constructive conversations between federal, state and territory governments, civil society, industry associations, and companies to move forward.

THE BENEFITS

The global energy transition will transform Australia’s extractive industries, and the Australian economy with it. Meeting global and domestic emissionsreduction targets will impose significant change on Australia’s the oil, gas, and mining sector.

Despite the current geopolitical energy crisis, global and domestic demand for Australia’s coal and gas will decline over the coming decade. At the same time demand for the critical minerals that are needed for the energy transition will grow.

Leading companies recognise transparency is an important part of their environmental, social, governance (ESG) commitments. Progressing the EITI Standard will have a positive impact on Australia’s global standing on transparency and good governance. This is an excellent opportunity for Australia to lead on innovation in delivering information to communities, investors, and ensuring people have the information they need to be meaningfully involved in decisions that impact them, now and in the future.

It will allow the public, communities, governments, and industry to have well informed discussions about the costs and benefits of Australia’s resource industries, and what’s needed for a just energy transition.

Support the energy transition. EITI data can be used to manage the risks and opportunities of the energy transition, including understanding extractive industries revenue streams.

Strengthen revenue and spending clarity: The EITI Standard requires disclosure of company payments and government revenues, for budget clarity needed to support public expenditure priority setting.

Address corruption risks: People can better understand how revenues flow and to whom. For example, beneficial ownership data disclosure allows for the identification of the beneficiaries of extractive industry licenses, permits, investments and contracts.

Inform investment decisions: Environmental, social and governance (ESG) is a growing concern for Australian companies and important for state government investment attraction.