Supporting the energy transition Helping countries navigate an evolving energy landscape As the energy transition gains traction, it will have a transformative impact on the extractive industries and global economy. EITI disclosures can be used to address the social, economic and environmental impacts of the energy transition. They can also help address governance and corruption risks in the face of anticipated growth in demand for minerals that are needed for renewable energy technologies. Following a mandate from the EITI Board in 2020, the EITI is supporting countries in using and analysing EITI data to prepare for the economic implications of the transition; identifying governance risks related to transition minerals and measures to mitigate them; and exploring opportunities to use EITI implementation to strengthen transparency in the renewables sector. In 2022, the EITI, in partnership with the OECD and NRGI, convened an expert group on critical minerals to provide guidance to countries on how to tackle corruption risks in the energy transition. Mission critical More than a quarter of EITI implementing countries are significant producers of minerals that are used for renewable energy technologies. The EITI’s Mission Critical report highlights the relationship between global energy transition objectives and the need for stronger mining sector governance at the national and local level. The study, undertaken by the Sustainable Minerals Institute and funded by the United States Agency for International Development (USAID), identifies 20 risk areas in the value chains of minerals needed for low-carbon energy technologies. These risks span global, transnational, national and subnational levels of mineral governance, ranging from environmental impacts and corrupt deals to price shocks and disruptions in global supply chains. Separately, Ghana EITI commissioned a study, supported by USAID, to map proven reserves of critical minerals; ascertain the suitability of legal and fiscal frameworks; and assess the fiscal, social and environmental risks and opportunities related to the extraction of critical minerals. The study offers recommendations on how Ghana can position itself strategically for the energy transition through state participation in the critical minerals sector, economic diversification and alignment of mining policies with broader industrialisation plans. EITI Energy Dialogue In 2021, the EITI hosted its first Energy Dialogue, bringing together African energy ministers and stakeholders to discuss the challenges and opportunities of the energy transition. The meeting highlighted the need for African countries to share experiences, and the EITI was identified as an important platform to build consensus and foster learning on managing the implications of the energy transition. A second Energy Dialogue was held in 2022, which continued the conversation on balancing economic interests with commitments to address climate change. Engaging local communities In 2022, the EITI launched Engaging communities in a just transition, a two-year project to shed light on how the energy transition is impacting livelihoods in communities living near extractive industries and energy projects. The project, which is supported by the Ford Foundation and builds on a 2020 scoping study, is being implemented in four communities located in Colombia, Ghana and Indonesia. Shedding light on the renewables sector EITI reporting offers a platform and lessons for addressing governance challenges and corruption risks in the renewables sector. Several countries, including Albania and Germany, are using the EITI to report on their renewable energy industries. In 2022, Mauritania EITI produced a report, with support from USAID, that explores what the development of gas and green hydrogen could mean for the country’s future as it seeks to capitalise on increasing demand for these resources. The study notes that, to fully capitalise on the sector’s potential, the move to establish a green hydrogen sector will need to be accompanied by sector-specific regulation. PHOTO CREDIT: Nelson David Alonso Charry 44 EITI Anniversary Report