Evolution of the 2019 EITI Standard and Key Changes Overview
The 2019 EITI Standard has undergone significant changes to reflect stakeholder feedback, address ambiguities, and improve implementation practices. These changes aim to provide more clarity, flexibility, and encourage countries to enhance disclosures in key areas. Key changes include updates in terminology, required obligations, expectations, and encouragement for systematic disclosure.
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2019 EITI Standard 2019 EITI Standard Overview of key changes Overview of key changes EITI International Secretariat October 2019 The global standard for the good governance of oil, gas and mineral resources
Evolution Evolution of of the the EITI Standard EITI Standard 2003 2005 2008 2011 2013 2016 2019 EITI Principles EITI Criteria and Sourcebook (non-binding) EITI Validation Guide (binding requirements) EITI Rules and Validation Guide EITI Standard (global standard) EITI Standard (revisions) EITI Standard (revisions)
Why the changes? Why the changes? To take feedback from stakeholders into account, and address ambiguities for more clarity. To reflect good practices in implementing countries To make implementation less burdensome by introducing flexibility To encourage countries to strengthen disclosures where it counts and addresses national priorities.
Terminology Terminology - - overview overview Level of obligation Level of obligation Required Required Terms used Terms used Consequence (Validation) Consequence (Validation) Must, should, required Will be taken into account in the assessment of progress Expected The MSG should consider and document discussions (including barriers to disclosures). Verified during Validation. Expected Expected Recommended, encouraged, may wish, could MSG efforts in Validation will be documented but not account in assessments. Encouraged Encouraged not taken into
2019 EITI Standard 2019 EITI Standard - - Overview Overview Required Required Expectations Expectations Encouraged Encouraged Flexible Flexible Clarification Clarification Gender (Requirement 1.4, Gender (Requirement 1.4, 6.3) : 6.3) : MSG representation and employment stats. Systematic disclosure (2.6, Systematic disclosure (2.6, 4.1, 4.9): 4.1, 4.9): Public audited financial statements of companies and SOEs; governments to disclose EITI data regularly License allocations (2.2) License allocations (2.2): terms for renewal, suspension, or revoking. Systematic disclosure (4.1, Systematic disclosure (4.1, 4.9): 4.9): Default expectation and definition; reconciliation as one procedure, Board can approve others. Contracts (2.4) Contracts (2.4): what does a policy on contracts mean? Beneficial ownership (2.5) Beneficial ownership (2.5): No more roadmaps; disclosure and clearer language. Contracts and license Contracts and license agreements (2.4): agreements (2.4): Disclosure required (2021). Production and exports (3.2, Production and exports (3.2, 3.3): 3.3): by project. Reporting on progress (7.4) Reporting on progress (7.4): No template, no specific deadline still annually Contract disclosure (2.4): Contract disclosure (2.4): Workplans with timeframe for disclosure. Commodity sales (4.2) Commodity sales (4.2): procurement of buyers, disclosure by commodity traders. Commodity sales (4.2): Commodity sales (4.2): For governments / on behalf of government: volumes, sale value, and share of value to the state. SOEs (2.6, 6.2) SOEs (2.6, 6.2): clarifies financial relationship, including JVs and subsidiaries; encourages quasi-fiscal definition of IMF and examples. Subnational transfers (5.2) Subnational transfers (5.2): encouraged to undergo same quality assurances. Environmental expenditures Environmental expenditures (6.1) (6.1): mandated by law or contract. Project Project- -level reporting (4.7) level reporting (4.7): Now internationally recognised definition. Environmental (6.4): Environmental (6.4): management, framework and monitoring. Public debate vs open data Public debate vs open data (7.1, 7.2) (7.1, 7.2): Open data separate from public debate, summary data in the Standard (important countries that wish to systematically disclose) Gender and marginalised Gender and marginalised groups (7.1, 7.4): groups (7.1, 7.4): consider access to info /debate. Recommendations (7.3): Recommendations (7.3): focus on reforms.
2019 EITI Standard 2019 EITI Standard Key Key changes changes Required Required Flexible Flexible Clarification Clarification Gender (Requirement 1.4, 6.3) : Gender (Requirement 1.4, 6.3) : MSG representation and employment stats. Systematic disclosure (4.1, 4.9): Systematic disclosure (4.1, 4.9): Default expectation and definition; reconciliation as one procedure, Board can approve others. Contracts (2.4) Contracts (2.4): what does a policy on contracts mean? Contracts and license agreements Contracts and license agreements (2.4): (2.4): Disclosure required (2021). Beneficial ownership (2.5) Beneficial ownership (2.5): No more roadmaps; disclosure and clearer language. Reporting on progress (7.4) Reporting on progress (7.4): No template, no specific deadline still annually Commodity sales (4.2): Commodity sales (4.2): For governments / on behalf of government: volumes, sale value, and share of value to the state. SOEs (2.6, 6.2) SOEs (2.6, 6.2): clarifies financial relationship, including JVs and subsidiaries; encourages quasi-fiscal definition of IMF and examples. Environmental expenditures (6.1) Environmental expenditures (6.1): mandated by law or contract. Project Project- -level reporting (4.7) level reporting (4.7): Now internationally recognised definition. Public debate vs open data (7.1, 7.2) Public debate vs open data (7.1, 7.2): Open data separate from public debate, summary data in the Standard (important countries that wish to systematically disclose)
Additional refinements and clarifications Additional refinements and clarifications Section on Terminology also explains systematic disclosures Countries are not suspended for achieving less than satisfactory progress on Requirements 1.1-1.3. Separate section on EITI Board oversight of implementation (previous Requirement 8 on Compliance and deadlines ).
Takeaways Takeaways Consider the implications implications for your work plan and EITI disclosures. Reach out to the International Secretariat for any clarification clarification or support support needs. Consider alternative quality assurance procedures alternative quality assurance procedures than reconciliation the Board may ask for pilots after discussing Accelerating systematic disclosure . The 2019 EITI Standard is available at: The 2019 EITI Standard is available at: https://eiti.org/document/eiti standard standard- -2019 2019. . https://eiti.org/document/eiti- -
www.eiti.org @EITIorg AUTHOR AUTHOR Christoffer Claussen DATE DATE 12 Feb 2020 OCCASION OCCASIONEITI Leaders Seminar E E- -MAIL MAILsecretariat@eiti.org TELEPHONE ADDRESSEITI International Secretariat, R dhusgata 26, 0151 Oslo, Norway TELEPHONE +47 22 20 08 00 ADDRESS
