Environmental grievances along the Extractive Industries Value … · 2020. 3. 8. · environmental...
Transcript of Environmental grievances along the Extractive Industries Value … · 2020. 3. 8. · environmental...
Environmental grievances along the Extractive Industries Value
Chain
Environment Programme
Dag Seierstad, UNEP
Mismanagement of oil exploitation sparks civil uprising in Ogoniland, Nigeria
Uprisings in Ogoniland began in 1990s over unfair revenue sharing and
environmental degradation. 13% goes to state but none reaching communities
Shell suspends operations in 1993 – loosing social license to operate.
Leaving all infrastructure in place and forgoing billions in revenues.
Oil theft and bunkering becomes widespread. 100,000 barrels per day are stolen.
Environmental contamination is chronic and severe. Infrastructure deteriorates.
Mediation process to resolve the Ogoniland conflict –UNEP provides technical support and facilitation
Natural resource exploitation fueled or financed (UNEP, 2009):
•40-60% of civil wars over past 60 years
•At least 18 violent conflicts since 1990
Attention to natural resources in peace agreements has increased dramatically (over last 25 year):
•1989-2004: More than 50% of agreements have NR provisions (51 of 94)
•2005-2014: All key agreements have NR provisions
Natural resources are important to conflict
Extractives are important across conflict cycle
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Contributingfactor
Conflictfinancing
Targeted duringconflict
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Role
Role of Natural Resources in Conflict(From 1990, Conflicts over 1,000 battle deaths)
Land
Extractive
Renewable
Water
Natural resources contribute to conflict
Drivers of conflict over natural resourcesCompetition over scarce resources
Unclear or overlapping rights and
laws
Major environmental
degradation
Lack of transparency and access to
decisions
Inequitable access,
ownership or benefits
Interact with other socio-economic,
political, security tensions and stresses
Violent
conflict
Conflict
de-escalation
and resolution
Poor dispute resolution capacity
Institutions
and
governance
StrongWeak
Trans-boundary impacts
Natural resources are never the only driver of conflict.
They always interact with other tensions and stress factors.
Three main risks from resource exploitation
Resource curse
and corruption
Violence and
conflict
Environmental
degradation / disasters
Mitigating these risks are
inter-related components of good resource governance
(is there a one-shot chance to get it right?)
Resource revenues are a key source of income for many post-conflict countries
Oil revenues represent more
than 98% of South Sudan’s
government budget.
On average,
50-80% of a
post-conflict
country’s
exports come
from natural
resources.
DR Congo:
Mineral reserves alone are estimated to be worth US 24 trillion.
More than half of the country is covered by resource concessions.
Hydroelectric potential could power more than half of Africa.
Levels of
Peace and
Conflict
Armed conflict
Crisis
Unstable Peace
Stable Peace(basic order)
Durable Peace(just order)
The different roles of natural resources across the conflict cycle
TIME
PREVENTION AND EARLY WARNING
Good resource
governance
Entry point
for dialogue
Economic incentive
for peacemaking
and confidence building
Employment
and livelihoods
Revenues and
basic services
Causing tensions
and grievances
Fueling and
financing conflict
Weapon of war Damaged by conflict
Incentive for
peace spoiling
Illegal exploitation
and trade
RISKS
OPPORTUNITIES
Land
(Farming, grazing,
settlements)
Extractive
Resources
(Oil/gas, minerals,
commercial timber, gems)
Renewable
Resources
(Water, wood,
fisheries, wildlife)
Conflict drivers are specific to each natural resource but difficult to disentangle
Conflict Drivers
Ownership
Wealth sharing
Negative impacts
Unmet expectations
Decision making
Resource curse
Conflict Drivers
Common property
Increasing scarcity
Natural variation
Lost access & damage
Poor governance
Conflict Drivers
Insecure land tenure
Lost access & damage
Marginalization
Loss of customary
practices
Overlapping claims
Early warning indicators in resource rich weak states High prices and volatility, more competition to secure
supplies, less trust and cooperation
Transnational organized crime and interactions between illicit and licit networks and rebel groups
Non-transparent natural resource management and revenue sharing
Supply chains without transparency and accountability
Absence of industry leaders, lack of compliance with regulations
National level institutions, laws and policies cannot keep pace with level of exploration and investment.
Lack of state control over territory
Lost “social license to operate”
Bad deals with multinationals
Peacebuilding and Natural Resources Linkages
Geo-mapping extractive industries in fragile states and emerging economies
Broadening and deepening the EI value chain to reduce grievances
Cold Deep Fragile
Exploration
and
Discovery
Construction
and
operations
Regulation
and
monitoring
of operation
Collection
of taxes and
royalties
Revenue
distribution
and
management
Implementation
of sustainable
development
policies and
site closure
Awards of
contract
and
licenses
• Access to
information
• Prior informed
consent
• Strategic IA
• Legal framework
and EI vision
• Public inclusion
• Decide to extract
• Competitive
bidding
• Transparent
terms
• Env./Social IA
• Benefits sharing
• Community
• awareness
• Up/downstream
economic linkages
• Local employment
content
• EIA/SIA monitoring
• Grievance
mechanisms
• Monitoring of
benefits sharing
• Sanctions
• Savings, debt
repayments,
infrastructure,
basic services
• Exchange rates
• Track and audit
expenditures
• Transparency
• Taxation
policies
• Track and
audit
• Economic
diversification
• Asset
transformation
• Site
rehabilitation
• Sustainable
practices
Strategic
framework
• PRSPs
• Green
Economy
• Natural
resource
legislation
• Governance
capacity
• Management
plans
• Deciding to
explore and
develop EI
sector
• Public debate
• Legitimate
process and
decisions
Natural resources – potential areas of priority with SDG 16 as entry point
1. Conflict early warning: Develop and use early warning systems for natural resource driven or financed conflicts and support conflict prevention initiatives with natural resources as entry points.
2. Peace agreements: Work to follow-up natural resources in peace agreements ,directly or indirectly as the basis for future reforms. All peace agreements globally in last 10 years include NRM provisions
3. Peacekeeping and environmental crime: Assess threat financing from environmental crime and ensure peacekeeping forces are mandated and equipped to monitor and interdict illicit resource exploitation.
4. Conflict-sensitize the EI value chain: Use SDG 16 to support an extractives sector with a legitimate strategic framework, inclusive processes, transparent and accountable systems with grievance mechanisms and benefits sharing
Natural resources – potential areas of priority with
SDG 16 as entry point
MAP-X
5. Capacity building for resource management: Countries with newly discovered oil, gas and minerals should be encouraged to build strong legal and institutional framework for natural resource governance before large concessions are issued. Once funds start flowing, it is difficult to make reforms.
6. Resource transparency: Make commitments and sign-up to international instruments that promote resource transparency, public participation, and accountability. EITI is a good example, MAP-X is a part of the future toolkit. Transparency contributes to trust building.
7. Development should not be anchored on high-value natural resources alone: Countries should not focus exclusively on extractives resources for development. Diversified approaches using all natural resources provide less vulnerability to commodity price booms and busts. Green economy approaches can be more economically stable and distribute benefits in a more equitable manner.
Levels of
Peace and
Conflict
Armed conflict
Crisis
Unstable Peace
Stable Peace(basic order)
Durable Peace(just order)
PREVENTION AND EARLY WARNING
www.unep.org/ecp
Knowledge platform and community of practice: www.environmentalpeacebuilding.org