Markets working to support sustainable development

Extractive Industries Transparency Initiative (EITI)

The EITI seeks to set a global standard for transparency in oil, gas and mining and is applicable to national governments. The EITI has a number of principles and indicators that are predominantly centred on improving transparency and accountability in the extractive industries.

The EITI maintains the EITI standard, which was updated in May 2013. Countries implement the EITI Standard to ensure full disclosure of taxes and other payments made by producing oil, gas and mining companies. These payments are disclosed in an annual EITI Report. 

The EITI is designed to provide benefits for implementing countries (boosting transparency and promoting good governance so giving clear signals to investors and International Finance Institutions); companies and investors (mitigating political and reputational risks); civil society (improving transparency).

Countries can either be ‘complaint’ or ‘candidate’ depending on their verification and implementation status. To become a candidate, a country must meet 4 sign up indicators. To achieve compliance full EITI Validation must take place within 2 years. Compliant members are subject to validation at least once every 5 years or if the EITI International board requests it. Assessment of compliance is independent. 

Market coverage: 

There are currently (September 2014) 29 compliant countries (meeting all EITI requirements) and 17 candidate countries (not yet meeting all requirements). 35 countries have produced 'candidate reports', and from the results of these reports, 1 county has has been suspended.

Background information: 

The Extractive Industries Transparency Initiative was introduced by Tony Blair in October 2002 at the World Summit for Sustainable Development in Johannesburg. The first conference to launch the Initiative was held in London, 2003.

The secretariat for EITI was opened in Oslo, 2007. A Global Conference is held every 2 years, and between these conferences meetings of the board are held.

The board is made up of 20 representatives from all stakeholders: implementing countries, supporting countries, civil society organisations and business. There is an elected independent Chair – this is currently Clare Short, former UK Secretary of State for International Development. 

Funding source: 

The Secretariat is funded by governments and supporting companies: 63% from governments and development agencies; 21% from oil and gas companies; 16% from mining companies; and 0.35% from investors and non-extractive companies.