The Extractive Industry Transparency Initiative (EITI) is preparing for the energy transition. (Note: The energy transition is a global transition from fossil fuels to renewable energies, backed by a collective global commitment to keep global warming below 2˚C, under the Paris Agreement and Nationally Determined Contributions (NDC).
Under the EITI, the energy transition will have serious implications. This is primarily about data and information disclosure requirements and support for accountability. The EITI Board organized a workshop on the energy transition on 14 December, offering experiences from Asia. In particular, analysis of data on fossil fuel production and transportation revenues, social costs and environmental impacts were presented for the discussion. An EITI policy document was presented, which says, inter alia:
· The shift from fossil fuels to renewable energy will lead to increased demand for critical minerals such as cobalt, copper, lithium, nickel and vanadium. Heightened demand has the potential to exacerbate existing risks of corruption and revenue loss related to the production and supply of these minerals.
· The EITI Standard provides for data that will support a fair and sustainable supply of critical minerals from the point of exploration and production. It includes disclosures on beneficial ownership of companies, contracts, environm
· The EITI Standard complements OECD and EU due diligence reporting guidelines and standards for companies by providing key information from countries that produce critical minerals, so as to facilitate the responsible sourcing of those minerals.
On the official website can find methodological materials on the implementation of the EITI requirements, such as
· EITI guidance: Our Guidance Note on Requirement 6.1 on environmental expenditures by extractive companies provides step-by-step guidance for implementation of requirements related to environmental reporting.
· EITI policy brief: The EITI’s policy brief outlines the different
· International Energy Agency: The World Energy Outlook Special Report provides a comprehensive analysis of the complex links between critical minerals and the prospects for a secure, rapid transformation of the energy sector.
· World Bank: The World Bank issued guidance on environmental assessments and commitments for borrowers, aiming at informing the mitigation of environmental risks and impact.
It should be noted Armenia has been an EITI member country since 2019. The requirements of EITI Standard in Armenia apply to the extractive industry of metal minerals, which include rare and non-ferrous metals, including those required for the production of alternative energy. However, so far the issue of energy transition has not been considered within the framework of the EITI in Armenia.
January 03, 2022 at 11:49