Development Centre

List of all examples currently in the compendium

 

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How to manage water scarcity and competing industrial and domestic use

  • 3.2.2.A. What can host governments do:

    1. Acknowledge  that  investment  in  water  security  drives  sustainable  growth,  and  invest  in infrastructures, institutions and information to manage water risks.
    2. Adopt  an  integrated  approach  to  water  resource  management  that  recognises  the  need  for  a negotiated process   to   co-ordinate   and   adjudicate   amongst   competing   users   to   ensure sustainable management of water resources.
    3. Consider non-conventional water sources, such as treated wastewater and desalinated water as alternatives  to  freshwater,  where  appropriate  from  an  economic,  social  and  environmental perspective.
  • 3.2.2. B. What can extractives industries do:

    1. Engage with local communities and water users, at basin and catchment levels, to understand water - related issues and risks (risk of scarcity, flooding, pollution, and risks to ecosystems) and consider offering solutions. For instance, investments made in multi-purpose infrastructure that support water - related objectives.
    2. With due regard to anti-competitive concerns, collaborate with other extractives companies from the same basin to devise a common solution for water management and allocation. For example, a collective water treatment infrastructure solution might be less environmentally costly and more cost - effective for all parties than several treatment facilities.
  • 3.2.2.C. Host governments and extractives industries can work together to:

    1. Devise  mutually  beneficial  arrangements.  For  example,  when  a  company  develops  water treatment  facilities  allowing  excess  capacity  to  be  used  by  the  community.  The government and  the  water  utility  should  be  responsible  for  distribution  of  the  water  and  collection  of associated tariffs.

How can access to credit be facilitated for small and medium enterprises

  • 3.1. B. What can extractives industries do:

    1. Assess short - term costs associated with workforce and supplier capacity building initiatives as investments that will reduce operating costs in the long term.
    2. Evaluate the potential to make advance purchase orders, forward purchase agreements or implement other mechanisms that could help facilitate the integration of local suppliers in extractives sector value chains.

How to create employment opportunities in a remote mining area of Canada

  • 3.1. B. What can extractives industries do:

    1. Support capacity building for specific job or value chain - related skills, either directly or through joint training programmes/centres.
  • 3.1. A. What can host governments do:

    1. Develop plans for an inclusive local workforce and supplier participation, focusing on increasing the participation of vulnerable groups, such as women and indigenous peoples.
  • 3.1. C. Host governments and extractives industries can work together to:

    1. Collectively assess the capabilities of the available local workforce and local supply base by occupation and existing skills. Undertake a decomposition analysis of the industry demand for skilled and unskilled workers and suppliers, charting the changing skills profile by type and phases of projects and their locations. Consider strategies to increase participation of vulnerable and historically underrepresented groups, such as women and indigenous peoples.

How can the mining sector drive growth in grid-connected renewable energy?

  • 3.2.1. B. What can extractives industries do:

    1. Enable a sustainable strategy for leveraging extractives sector energy generation, by assessing the feasibility of renewable energy power generation options.

    2. In consultation with donors, governments, and utilities, assess the feasibility of installing a renewable energy-based mini grid instead of isolated generators and explore implementation and cost-sharing arrangements.
  • 3.2.1. C. Host governments and extractives industries can work together to:

    1. Undertake early discussions regarding power infrastructure needs and plans to determine if there are synergies, efficiencies and other opportunities for shared value creation with respect to power generation and distribution. This includes developing strategies for situations where there is no ready access to the electricity grid.
  • STEP 4. Support and contribute to innovation leading to new products and services

    4. B.  What can extractives industries do?

    1. Leverage extractives sector operations to increase use of renewable energy, as appropriate. This could be done for example by either linking production to renewable energy (e.g. making use of solar and wind power to reduce the contribution of fossil fuels and green-house gases to mineral and oil & gas production, while reducing high electricity costs associated with the use of decentralised diesel generators) or by developing green supply chains (e.g. mining rare earths and supporting local manufacturing of magnets for wind turbines to provide clean energy or mining lithium to manufacture electric batteries for incorporation into green products).

How can mining catalyse the deployment of off-grid solar energy?

  • STEP 1. Adopt a comprehensive long-term vision and implementation strategy to build competitive and diversified economies and create in-country shared value out of natural resources.

    1. A. What can host governments do:

    1. Develop sustainable options for energy production and consumption, also assessing trade-offs and combined use of renewable and non-renewable resources.
  • STEP 3. Unlocking opportunities for in-country shared value creation

    3.1. B. What can extractives industries do:

    1. Develop electricity self-supply plans that align with government’s plans for electrification and local contexts.
    2. Enable a sustainable strategy for leveraging extractives sector energy generation, by assessing the feasibility of renewable energy power generation options.
    3. In consultation with donors, governments, and utilities, assess the feasibility of installing a renewable energy-based mini grid instead of isolated generators and explore implementation and cost-sharing arrangements.
  • STEP 4. Support and contribute to innovation leading to new products and services

    4. B. What can extractives industries do?

    1. Leverage extractives sector operations to increase use of renewable energy, as appropriate. This could be done for example by either linking production to renewable energy (e.g. making use of solar and wind power to reduce the contribution of fossil fuels and green-house gases to mineral and oil & gas production, while reducing high electricity costs associated with the use of decentralised diesel generators) or by developing green supply chains (e.g. mining rare earths and supporting local manufacturing of magnets for wind turbines to provide clean energy or mining lithium to manufacture electric batteries for incorporation into green products).

How to develop a flexible long-term collaborative approach to job creation and supplier development

  • STEP 2. Build an empirical basis to inform decision making through an inclusive participatory process 

    2. A. What can host governments do?

    1. Serve as conveners and identify the stakeholders to be involved: central government agencies, regions, municipalities, upstream, midstream and downstream industry, chambers of commerce and industry associations, workers (including local and migrant workers) and trade unions, entities related through a business relationship (suppliers, contractors, shareholders), research institutes and universities, centres of excellence, training institutions, trade unions, local and affected communities (e.g. communities living downstream from a river near the site, or along a transport route), civil society, and vulnerable groups, such as indigenous peoples and women.
    2. In order to do so, where appropriate, design mechanisms viewed as credible by stakeholders.
    3. Obtain sufficient support from the start, by giving due consideration to interests and concerns across different constituencies, thus creating the conditions for proactive interventions and reducing potential situations of conflict by supplying early information.
    4. Recognise that there may be areas of value creation beyond early reach, dependent on the type of resource, the maturity of the sector, the level of industrialisation and, more generally, the stage of development of the economy.
  • STEP 3. Unlock opportunities for in-country shared value creation

    Opportunities for in-country shared value creation can be found in sector-specific demand for workforces and for goods and services. Extractives sector projects can also be leveraged to develop multi-purpose and multi-user infrastructure, enabling systemic linkages and economic diversification as well as affordable access to power and water. Combined together, these measures can generate positive impact on job creation, skills development, and poverty reduction.

    3.1. Local workforce and supplier development

    3.1. A. What can host governments do?

    1. Prioritise approaches that enable progress towards achieving common objectives, goals and targets over compliance with and enforcement of local content quotas.
    2. Undertake a baseline assessment and build credible and reliable statistics on existing industry capacity, size of local enterprises, level of participation, supplier landscape and institutional capacity for skills and small and medium-sized enterprise development to inform strategic planning required skills upgrading and technical training activities.

How an industrial baseline survey can inform long-term strategic planning and facilitate creation of sustainable economic linkages

  • STEP 2. Build an empirical basis to inform decision-making through an inclusive participatory process

    2. A. What can host governments do?

    1. Consider the full life cycle of natural resource developments and their value chains when identifying in-country shared value opportunities.
      1. Classify systemic value chain links to show the nature of potential interconnections with other products and services in the renewable and non-resource sectors to identify segments with high growth potential. Take appropriate measures so that the extractives sector becomes a catalyst and an anchor for growth, diversified economic activity, and integrated territorial development, creating linkages through which knowledge, inputs, and labour can flow.
    2. Classify systemic value chain links to show the nature of potential interconnections with other products and services in the renewable and non-resource sectors to identify segments with high growth potential. Take appropriate measures so that the extractives sector becomes a catalyst and an anchor for growth, diversified economic activity, and integrated territorial development, creating linkages through which knowledge, inputs, and labour can flow.
  • 2. B. What can extractive industries do?

    1. Provide information on an individual basis (to avoid any anti-competitive issues) to governments on future demand for workforce, goods, services, infrastructure, technologies, and other inputs (such as land, water and energy) along the project life cycle. 
  • 2. C. Host governments, extractives industries and civil society can work together to:

    1. Recognise that there may be areas of value creation beyond early reach, dependent on the type of resource, the maturity of the sector, the level of industrialisation and, more generally, the stage of development of the economy.
    2. Collect and aggregate the extractives sector’s current and future needs, in terms of demand for workforce, goods and services, infrastructure and use of other inputs (such as energy, land and water).
    3. Identify any barriers to entry for the production of certain products or the development of certain activities, taking into account the structure and dynamics of domestic, regional and global markets.
    4. Identify goods and services that are both specific and not specific to the extractives industry, highly specialised, or subject to strong competition.
  • STEP 3. Unlock opportunities for in-country shared value creation: local workforce and supplier development; shared infrastructure (power, water and transport)

    3.1. A. What can host governments do?

    1. Undertake a baseline assessment and build credible and reliable statistics on existing industry capacity, size of local enterprises, level of participation, supplier landscape and institutional capacity for skills and small and medium-sized enterprise development to inform strategic planning, required skills upgrading and technical training activities.
  • 3.1. C. Host governments, extractives industries and civil society can work together to:

    1. Collectively assess existing industry capacity, level of local participation, and supplier 'landscape', to inform strategic planning, required skills upgrading, and technical training activities.
    2. Evaluate the time and resources needed to close any identified technological, infrastructure, capabilities, and financing gaps.

A tool for mine-site level local procurement reporting

  • STEP 5 Establish effective and transparent monitoring and evaluation systems and regularly review the collaborative strategy.

    5. A. Host governments, industry and civil society can work together to:

    1. Build on existing structures, such as the Extractive Industry Transparency Initiative (EITI) Multi-Stakeholder Group (MSG) or, where necessary, develop governance mechanisms to ensure effective and transparent monitoring and evaluation, involving relevant government bodies, extractives industry, and civil society in the design and implementation of the system, allocating clear roles and responsibilities.
    2. Develop an efficient and effective standardised, yet flexible and adaptive methodology, for performance measurement and reporting, generating sufficient information to assess progress on all aspects of shared value creation and inform better decision-making and monitoring, while avoiding inefficiency or complexity for companies and government agencies.
      1. Build on existing structures, such as the Extractive Industry Transparency Initiative (EITI) Multi-Stakeholder Group (MSG) or, where necessary, develop governance mechanisms to ensure effective and transparent monitoring and evaluation, involving relevant government bodies, extractives industry, and civil society in the design and implementation of the system, allocating clear roles and responsibilities.
      2. Develop an efficient and effective standardised, yet flexible and adaptive methodology, for performance measurement and reporting, generating sufficient information to assess progress on all aspects of shared value creation and inform better decision-making and monitoring, while avoiding inefficiency or complexity for companies and government agencies.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    5. B. The extractives industry can:

    1. Integrate the standardised methodology and reporting procedures into internal local monitoring and evaluation system, including through existing sustainability reports where applicable and as appropriate.
    2. Provide reporting in as much detail as reasonably possible to better measure and manage company activities. Share available data and information as agreed with host government's authorities to enable them to make better-informed decisions to create in-country shared value.
      1. Build on existing structures, such as the Extractive Industry Transparency Initiative (EITI) Multi-Stakeholder Group (MSG) or, where necessary, develop governance mechanisms to ensure effective and transparent monitoring and evaluation, involving relevant government bodies, extractives industry, and civil society in the design and implementation of the system, allocating clear roles and responsibilities.
      2. Develop an efficient and effective standardised, yet flexible and adaptive methodology, for performance measurement and reporting, generating sufficient information to assess progress on all aspects of shared value creation and inform better decision-making and monitoring, while avoiding inefficiency or complexity for companies and government agencies.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

How industry and government can work together to facilitate the linkage of multinationals with local firms to support innovation and local supplier participation

  • STEP 3 Unlock opportunities for in-country shared value creation

    Opportunities for in-country shared value creation can be found in sector-specific demand for workforces and for goods and services. Extractives sector projects can also be leveraged to develop multi-purpose and multi-user infrastructure, enabling systemic linkages and economic diversification as well as affordable access to power and water. Combined together, these measures can generate positive impact on job creation, skills development, and poverty reduction.

    3.1. Local workforce and supplier development:

    3.1. A. What can host governments do:

    1. Prioritise approaches that enable progress towards achieving common objectives, goals and targets over compliance with and enforcement of local content quotas.
    2. Facilitate the linkage of multinationals with local firms, in particular local small and medium-sized enterprises.
    3. Match training opportunities with documented industry demand, in priority segments/activities with the highest growth potential.
  • 3.1. C. Host governments and extractives industries can work together to:

    1. Identify and prioritise quick wins for local workforce and supplier participation and leverage other opportunity areas for long-term collaboration.

How can solar energy support more efficient enhanced oil recovery?

  • STEP 4 Support and contribute to innovation leading to new products and services

    4 B. What can extractives industries do?

    1. Leverage extractives sector operations to increase use of renewable energy, as appropriate. This could be done for example by either linking production to renewable energy (e.g. making use of solar and wind power to reduce the contribution of fossil fuels and green-house gases to mineral and oil & gas production, while reducing high electricity costs associated with the use of decentralised diesel generators) or by developing green supply chains (e.g. mining rare earths and supporting local manufacturing of magnets for wind turbines to provide clean energy or mining lithium to manufacture electric batteries for incorporation into green products).