The Extractive Industries Transparency Initiative (EITI) is an international standard established in 2003 to promote transparency and accountability in the governance of natural resources. It is a global coalition of governments, companies, and civil society organizations working towards the responsible management of extractive industries like oil, gas, and mining.
The EITI sets out principles and guidelines to ensure that countries’ natural resource wealth benefits their citizens by encouraging the disclosure and verification of information throughout the extractive industries value chain. The initiative aims to address issues of corruption, mismanagement, and the misuse of revenues within the sector.
Under the EITI, participating countries commit to disclose information about the extractive industries, including production levels, licensing mechanisms, revenue collection, and revenue distribution. This information is then independently reviewed and validated by an EITI multi-stakeholder group (MSG), composed of representatives from the government, companies, and civil society organizations.
By promoting transparency, the EITI aims to foster public trust, attract responsible investment, and prevent resource-related conflicts. It also facilitates informed public debate and encourages sustainable development by improving the governance of natural resources.
The EITI has been adopted by over 50 countries worldwide, representing a diverse range of resource-rich nations. While compliance with the initiative is voluntary, participating countries are encouraged to implement the EITI Standard and report on their progress in meeting its requirements.
In summary, the EITI is an international transparency initiative that aims to improve accountability and promote responsible governance in the extractive industries, with the ultimate goal of ensuring that natural resource wealth benefits all citizens of resource-rich countries.
