OECD Policy Dialogue on Natural Resource-based Development

Low Carbon, Just Transition

EFFECT provides policy options for resource-rich countries to transition from fossil fuels in a just, equitable manner, aiming for net zero by 2050 as outlined in the COP28 outcome document.

The Gas Use Decision Tree Tool (GUDTT) & Scorecard helps policymakers balance energy security, sustainability, and equity. It aids in planning to reduce reliance on fossil gas, ensuring transitional gas projects meet both development and climate goals, consistent with COP28 agreements.

The review of regulatory requirements and incentives to reduce methane emissions from oil and gas aims to help resource-rich countries accelerate emission reductions, particularly methane, by 2030, as called for by the Global Stocktake outcome. This helps fossil fuel producers maintain market access, respond to new emissions requirements, and turn voluntary commitments into action.

A new workstream on Critical Raw Materials for a Just Transition explores the implications of tripling renewable energy capacity by 2030, requiring expanded mining in resource-rich developing countries. This aims to turn dependence on imports for clean energy technologies into opportunities for shared prosperity and sustainable development.

Shared Value Creation

Effective collaboration between governments, the private sector, local communities, and civil society is crucial for sustainable development. The Development Centre provides guidance on maximizing socio-economic benefits from natural resources, including employment, local entrepreneurship, infrastructure use, and diversification.

Revenue Management and Spending

Managing volatile resource revenues is essential for consistent spending and productive gains, aligning with the 2030 Sustainable Development Agenda.

Getting Better Deals

Extractive contracts impact public revenues and local economic opportunities. Aligning interests and negotiating strengths is crucial to avoid unbalanced, unsustainable contracts.

Domestic Resource Mobilisation

Addressing corruption and base erosion and profit shifting (BEPS) in resource extraction is a high priority for developing countries to raise revenue effectively.

Commodity Trading Transparency

Commodity trading involves significant corruption risks. Addressing these requires concerted efforts to increase transparency and improve accountability in commodity trading.

The diversity of knowledge partners involved include producing countries, importing countries, relevant international organisations, industry, civil society, academia, legal practitioners, and think tanks. This has ensured a balance of views and opinions by involving entities with different viewpoints and interests and has resulted in the elaboration of actionable recommendation.

The PD-NR has established two Communities of Practice that bring together a subset of producer and consumer economies as well as industry, international organisations and civil society to develop collaborative and actionable solutions to chart just transition pathways for oil & gas producing developing countries and to ensure that the growing demand for critical raw materials supports a just transition in developing countries.

The PD-NR actively seeks to maximise synergies and strengthen collaboration with existing on-going initiatives in order to avoid duplication, including the African Development Bank Group (AfDB), the Extractive Industries Transparency Initiative (EITI), and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF).