Renegotiating Contracts For The Energy Transition In The Extractives Industry

This book focuses on renegotiating extractive contracts to align with the net-zero goals. It delves into extractive contract negotiations in four ways which collectively represent a major research gap in literature. It focuses on extractive contract provisions and examines their alignment with net zero goals, suggesting how these provisions could be re-negotiated to ensure an effective energy transition. Consequently, the book assesses how contractual provisions are responding to, or reflecting energy transition scenarios, and highlights areas to be included or strengthened that will be beneficial for all energy stakeholders. This book goes on to discuss the energy transition global landscape. Through the presentation of case studies from different countries, the book assesses the transition risks in extractive contracts, and it uniquely provides the negotiation tools and strategies to address these transition risks.

Clashes over the terms of mineral contracts have become a political lightning rod in many resource-rich countries. A series of bitter disputes in recent years, some ending in lengthy litigation, project cancellation or even expropriation, has unsettled investors and global markets. These disputes call attention to the fragile and complex relationship between companies and their host governments that characterizes the extractives sector. The economic significance of the sector to producer countries is well known, as is its role in influencing the fate of political leaders. Consequently, it is often subject to intense global scrutiny, whether over revenue transparency or its environmental legacy. Its impact on the national economy or local communities also remains an area of contested rights, responsibilities and benefits. A decade of high prices and fast-growing global demand has triggered a new generation of mineral mega-investments. Many of these ventures are located in countries with long-established extractive industries, such as Australia, Chile and Canada. But 'emerging producers', such as Mozambique and Mongolia, are also attracting interest from extractive companies, whether private corporations or state-owned enterprises (SOEs). Today, public anticipation of the benefits of extractives projects is again rising in many countries, with producer governments asserting greater control over their mineral endowments. But these expectations come at a time when the operational and political context for mineral investments is shifting across the world, raising questions about the long-term future of the extractives sector, especially in developing countries. Mineral and hydrocarbons production increasingly takes place in geologically, ecologically and politically challenging regions, as opportunities for more accessible reserves dwindle. Water scarcity and the increasing frequency of extreme weather events are raising new risks for investors and producers. Heightened concerns over resource security, environmental degradation and climate change will bring further scrutiny and tensions. Other uncertainties also cloud the market outlook. Talk of the end of the commodities super-cycle is prompting some companies to slash investment, undermining the prospects for resource-led development. The relationship between host country and company in the extractives sector will remain contentious. In many parts of the world conflicts are set to escalate. Future disputes have significant ramifications not only for the economic and political stability of the countries concerned but also for companies' assets and reputations.

This book synthesizes findings regarding the political drivers of institutional change in extractive industry governance. It analyses resource governance from the late nineteenth century to the present in Bolivia, Ghana, Peru, and Zambia, focusing on the ways in which resource governance and national political settlements interact.

Oil, Gas, and Mining: A Sourcebook for Understanding the Extractive Industries provides developing countries with a technical understanding and practical options around oil, gas, and mining sector development issues. A central premise of the Sourcebook is that good technical knowledge can better inform political, economic, and social choices with respect to sector development and the related risks and opportunities. The guidance provided by the Sourcebook assumes a broad set of overarching principles, all centered on good governance and directed at achieving positive and broadly based sustainable development outcomes. This Sourcebook is rich in presenting options to challenges, on the understanding that contexts and needs vary, and that there is much to be gained from appreciating the lessons learned from a broad set of experiences.

This publication applies the principles of the revised IMF Code of Good Practices on Fiscal Transparency to the unique set of transparency problems faced by countries that derive a significant share of their revenues from natural resources and need to address complex and volatile transaction flows. The guide identifies and explains generally recognized good or best practices for transparency of resource revenue management. It supplements the IMF Manual on Fiscal Transparency. It is designed to give a framework for assessing resource-specific issues within broader fiscal transparency assessments (including so-called 'fiscal ROSCs').--Publisher's description.

This flagship publication examines different aspects of the nature and role of international trade in the era of hyperglobalization and considers related policy challenges that will need to be addressed if trade is to contribute to a more stable and inclusive global economic order. Research provides authoritative data and analysis on trade, investment, finance and technology. UNCTAD offers solutions to the major challenges facing developing countries, particularly the poorest and most vulnerable nations. Beyond tailored analysis and policy recommendations, UNCTAD research also generates global standards that govern responsible sovereign lending and borrowing, investment, entrepreneurship, competition and consumer protection and trade rules.