The basis for implementing the EITI is the international EITI-Standard. Countries that join the voluntary transparency initiative are committed to implement the Standard at the national level. Sometimes, EITI member countries choose to transpose the EITI requirements into national law, as for instance Ukraine has done.
The requirements of the EITI-Standard can be divided into two main areas: On the one hand, formal requirements about the EITI-process are provided; on the other hand, other requirements are aimed at outcomes and impact of the EITI.
At the international level, the EITI-process is managed by the EITI board. The board is comprised of representatives from governments, civil society organizations, industry and institutional investors. At the national level, the Standard requires the establishment of a multi-stakeholder group (MSG) with representatives from the government, civil society and private sector, that steer and monitor the EITI-process. The German MSG was established in 2015. The Standard also lays out the composition and functioning of the MSG and provides detailed requirements on the disclosure of information regarding the extractive sector (see How EITI works).
Nevertheless, the disclosure of information can only produce outcomes and create impact, if the public is aware about what the data mean foster a public debate on the respective topics. Therefore, the EITI Standard requires active dissemination and publication of EITI-information as well as its disclosure in an open data format.
On a regular basis, all EITI member countries undergo an external validation process to determine whether they meet the EITI Standard requirements. If a country is not making significant progress in meeting the EITI Standard or is found to have poor implementation in key areas (such as independent and active civil society participation), the country is temporarily suspended from the EITI (see Validation).
EITI Standard 2019
The EITI-Standard 2019 was adopted at the EITI Global Conference in Paris on 18 June 2019 and has since formed the basis for the implementation of the EITI. In comparison to the pervious version of the Standard, EITI member countries have to disclose additional information about the following topics:
- Environmental Reporting: the impact of extractive activities on the environment is at the center of public debate. The EITI-Standard 2019 requires, amongst others, the mandatory disclosure of essential payments that companies make on the basis of legal requirements or contracts
- Gender: The EITI-Standard 2019 requires the MSG to address the topic of gender balance and to provide a breakdown of employment figures by company, gender and occupational level.
- Contract Transparency: Many EITI member countries specify the amount of taxes to be paid for resource extraction in their contracts with companies. As these contracts often remain confidential, the public is unable to follow up and assess whether the state receives a fair compensation. The EITI-Standard 2019 requires the disclosure of all contracts starting from 2021.
- State participation and sale of the State’s share of production: About half of the 2.5 billion US-Dollar, that were previously disclosed in EITI reports as payments of the oil-, gas- and mining sector, flows through national oil companies. The EITI Board agreed to expand the requirements about the disclosure of public ownership as well as transactions and quasi-public expenditure of public companies. In addition, the requirements for disclosure of sales of the state’s share of production or any other in-kind transfers have been expanded.
Changes were also made regarding the format of disclosure. Annual reports, that previously formed the core of the EITI implementation shall be increasingly replaced by a systematic disclosure, combined with the digital provision of all data and information in an open data format.
The second validation of the D-EITI starting on 1 October 2023, will be based on the requirements of the EITI Standard 2019.