Promoting Transparency in the Extractives Sector:Canada and the Extractive Industries Transparency Initiative

Mark Pearson - Director General, External Relations

Natural Resources Canada

Publish What You Pay Canada – International Conference

November 16, 2009

Extractive Industries Transparency Initiative

• The EITI supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas and mining.

• By aligning industry payments with government revenues, the EITI is directed at combating bribery and corruption, thereby addressing the need for frameworks to assist with responsible resource development.

• The responsible extraction of natural resources can have a positive impact on environmental sustainability and social development and create lasting change in resource-rich communities.

A Global “Gold Standard”

• Since its inception in 2002, the EITI has become the leading mechanism for transparency and accountability in the extractives sector.

• 30 countries are undergoing the EITI process, with new countries continually becoming engaged.

• It continues to garner support from other sectors, including international organizations, civil society and international financing institutions.

Why does Canada support the EITI?

• Core principles of the EITI are consistent with Canada’s official development assistance programs.

• Good governance mechanisms help to promote stability and mitigate political risk for Canadian investment.

• Creates a consistent methodology that enables working with industry to implement practical solutions to development challenges.

• Multi-stakeholder nature ensures civil society plays a meaningful role.

Our History with the EITI

Participation was a result of the 2006 National Roundtables on Corporate Social Responsibility and the Canadian Extractives Sector in Developing Countries.

Support was formally announced in 2007 and has been identified as a key deliverable in the Government of Canada’s 2009 CSR Strategy.

Canada provides technical assistance, monetary contributions and policy advice and advocates for the EITI in international fora.

Outreach at Home

2008:• National EITI Outreach

– Information session to engage key stakeholders in the EITI.

2009:• Industry-Based Outreach

– Workshop to situate the EITI amongst international CSR initiatives

2010: • Civil Society Outreach

– Session on the margins of GLOBE 2010

Canada’s EITI website

• Canada’s EITI website was launched October 2009 in Baku, Azerbaijan, in support of broader national outreach. The site:

– Profiles Canada’s approach and experiences with the EITI;– Highlights the impacts of the initiative for Canadian

industries and details success stories; and,– Showcases our domestic reporting mechanisms.

www.eiti.nrcan.gc.ca /// www.itie.rncan.gc.ca

EITI: Looking forward

• The EITI is approaching its first milestone with 20 countries expected to validate in March 2010.

• To this end Canada will:

– Continue to highlight and advance the EITI Principles and Criteria in International Fora -- e.g., G8, the UN, La Francophonie;

– Support the EITI’s momentum as an international gold standard; and

– Position the EITI as a key international mechanism to address natural resources governance issues.

Thank you!

For more information, please visit Canada’s

National EITI website:

www.eiti.nrcan.gc.ca