The Bank’s work in the extractive industries sector focuses on three main pillars that support the overall goals of ending extreme poverty and boosting shared prosperity: 1) financial sustainability; 2) social sustainability and 3) environmental sustainability. To achieve these broad goals the Bank uses a wide range of instruments, from financing to analytical work and global knowledge and partnerships.
Along with our core lending, analytical work, and knowledge products, the Bank administers a number of Multi-Donor Trust Funds (MDTF) to achieve ambitious development goals. The Extractives Global Programmatic Support (EGPS) MDTF supports programs ranging from transparency and governance, to legal and regulatory reform, local economic diversification, strengthening institutions, and social and environmental sustainability.
The Global Gas Flaring Reduction Partnership (GGFR) is a public-private initiative comprising international and national oil companies, governments, and international institutions. GGFR’s focus is ending routine gas flaring at oil production sites around the world as a way to increase energy access, improve efficiency, and mitigate climate change. GGFR works with industry and governments around the world to harness natural gas associated with oil production, and to conserve it or put it to productive use rather than wastefully flaring it, causing millions of tons of CO2 to be emitted.
Financial Sustainability: The Bank works with governments to strengthen fiscal regimes, remove subsidies, improve tax administration and revenue transparency to build resilience to economic shocks and lessen the opportunities for the resource curse. It also assists governments implement structured financial solutions to de-risk private sector investments, strengthen enterprises, and reinforce public-private partnerships.
The Bank also works with governments to develop policies for oil, gas, and mining regimes and capacity building for effective management. It starts with supporting capacity building for contract negotiation, and includes legal and regulatory frameworks, tax and royalty administration as well as revenue management.
To advance transparent revenue management, the Bank supports the implementation of the Extractive Industries Transparency Initiative (EITI) through technical assistance to countries working to publish and verify company payments and government revenues from oil, gas, and minerals. A total of 51 countries are implementing the EITI standard, of which 49 are eligible for World Bank support.
By supporting governments to create an enabling environment, improve sector governance and lower risk, extractive industries can leverage large scale private sector investment through IFC involvement.
Social Sustainability: For effective development outcomes, local communities must actively participate in extractive industries operations, leveraging the industry’s infrastructure, job creation, and small business opportunities to provide sustainable development over time. To that end, the Bank works to promote inclusive growth, bringing together diverse stakeholders to improve accountability, lessen impacts on communities, women and the most vulnerable people, particularly in fragile areas. The Bank also leverages extractive industries projects to achieve shared value and enhance livelihoods.
Environmental Sustainability: The World Bank works with governments to develop strategic environmental and social assessments to anticipate sector-wide impacts and to incorporate environmental and social priorities into extractive industries’ policies and regulatory arrangements.
Last Updated: Apr 10,2017